Key take aways of the call

Consolidated order book of the company as end of March 2016 stood at Rs 802.6 crore. Consolidated order book includes the order booked by international subsidiaries of the company as well as that of GE Triveni (GETL). The standalone order book as end of March 2016 stood at Rs 664 crore, a growth of 10%.

Consolidated order booking for FY16 grew by 21%yoy to 837.4 crore with product order intake being Rs 657.5 crore (up 21%yoy) and after market order being 179.90 crore (up 20%yoy).

The domestic market upto 30 MW shown a decline of approx 20% over the previous year and that has reflected in the domestic order booking of the company.

Strong growth in order booking despite subdued domestic market is due higher export order bookings. Higher export order bookings is largely due to company's expanded market reach with the company entering newer markets as well as strategy of it to cater to all the major user segments.

Strategy of the company to cater to all the major segments such as sugar co-generation, process co-generation, biomass, waste to energy, combined cycle etc., globally, paid off well and the exports order booking on a consolidated basis grew by 49% during FY16. The company, today, has a reach in over 50 countries in terms of order booking / installations, and has enquiries from over 100 countries.

Currently the exports of the company spread across various geographies Europe, turkey, SEA, South African Development region.

The company believes the various Government initiatives should help to turn-around the capital goods sector and the domestic market is expected to show some growth towards the second half of FY 17.

So domestic order booking in FY17 will be better than FY16. But with domestic market recovery expected in H2FY17 the despatches will be pushed to FY18 and the sales benefit will happen only in FY18.

Enquiries and order placement in case of renewable segment such as waste to energy, biomass and Combined Cycle is strong and growing in all countries, where the company is currently offering its products and services.

The Company secured orders from process co-generation and sugar amongst other sectors during FY 16 and already has a good pipeline of enquiries from these sectors which are expected to finalize in the coming year. Sugar sector in the country as well as globally South America, Indonesia, Vietnam has picked up this will help both TTL and GETL.

Capex for FY17 will be around Rs 45-50 crore.

The company has got refurbishment orders of non triveni turbines in one or two countries especially in Europe and South Africa. This gives good referrals going forward.

About 59% of orders on hand are exports.

Enquiry base is strong in both TTL, and GETL. GETL is currently executing order in SEA and South America.

The mix of consolidated aftermarket sales in terms of domestic and exports have changed from 63:37 in FY 15 to 61:39 in FY 16, which reflects the increasing acceptance of service business of the company globally.

To take care of international business operations, the company have set up two subsidiaries in London and Middle East, which have started operations already. Further TTL operationalized two service centres in South East Asia and Africa and is also in the process of setting up some more offices which are strategically important for growth of its products as well as aftermarket business. The company will open another 2-3 centres in SEA and Europe. These centres will supply, erect, and provide aftermarket services of company's products. It will also undertake upgrades, refurbishment service of other manufacturer product as well.

Sales to Indian EPC, who in turn sell to export orders is also consider domestic. If we exclude that the drop is 15%. Cement will start picking up from H2FY17. Cement along with Food, sugar, Chemical and fertilizers will pick up in domestic market from FY18 on wards.

The management is looking to preservation of margin. The company is tries to cover risk by expanding territory, service offerings and mix to topline.

Order book of the GETL as end of March 31, 2016 stood at Rs 162 crore. The revenue of GT for FY16 was about Rs 142 crore.