Key Highlights

The company has booked orders worth 111 crore in gear business and total order book stands at Rs 711 crore as on June'16. Of this order book around Rs 530 crore of orders are from Indian Navy which will be executed in FY'19 to FY'22 period. Rest of the orders are to be executed in FY'17.

Other orders for Indian Navy for gears have been tendered out and bids will start soon. These orders are generally for long term execution period.

As per the management, moderate growth was seen in gear business of around 5-8% growth.

There will be some impact of Brexit in near term for one of the subsidiaries of the company. However increase in sale from US and Africa market should compensate the losses.

Management continued to reiterate the FY'19 target guidance of around Rs 400 crore from its international subsidiaries.

Pending order book position in MHE division stood at around Rs 711 crore and company booked orders of around Rs 43 crore during the quarter. As per the management, some growth was seen in sectors like cement, while the rest of the sectors like power and steel continued to remain soft. There was no momentum and the company had to stretch itself for higher orders.

Outstanding debt on consolidated basis is Rs 600 crore and retention money is around Rs 350 crore. Debtors stand at around Rs 900 crore as on June'16

Management reiterated overall guidance of 7-8% net sales growth for FY'17.

GST impact will help in reducing some administrative burden otherwise no major impact positive or negative to the company

Revenues from sale of spare parts and after sales service were around 20% on an average.

Overall, management would update further on the growth and margin targets by the end of H2 FY'17.