Key takeaways of the call

Order Book as end of June 2016 stood at Rs 410 crore with manufacturing order book stand at Rs 298 crore and that of Project was Rs 112 crore. This order backlog will be executed in next 3-12 months.

Order inflow for project business in Q1FY17 is Rs 32 crore. Manufacturing order intake in Q1FY17 was Rs 93.6 crore and the order backlog is Rs 298 crore. The share of exports in manufacturing order intake and order backlog is 76% and 68%.

Strong enquiries witnessed for every segment. But the domestic market currently witness complete absence of activity. Except for some activity in sugar and metals there is not much under pipeline. CPP and small IPP customers got bank approval but not getting disbursal and this could be one of the reasons for delay in ordering.

Exports order pipeline is strong. Got its first order from USA for gas turbine generators. It is a special machine. With this order some more orders are under pipeline. The company though supplied first batch of railway order for trial run the conversion of that into order will be known only by end of this fiscal.

Railway business for the company is completely coming out of US. First of Railway generators sent to USA and they are currently under trial. Performance of the first 5 machines supplied to USA in trial run is fine. Still some more time is there for completion of trial run. So firm business for railway business will happen only by end of current fiscal and execution happen only next fiscal.

Project business is lumpy and billing will be bunched in a quarter where large despatch happens. Q1FY17

Chances of revenue growth for FY17 are slim as of now and flat growth is expected. Pickup of short cycle orders and exports orders are crucial in offsetting the downside in domestic market.

Hydro – Demand is coming only from few locations such as Vietnam, Norway, central and South Americas. But the demand is good from these locations. The domestic demand is totally dry.

Steam – There is business internationally but the competition is very intense. But the drop in demand in domestic market is very sharp.

Exports and deemed exports accounts for 61% exports of the revenue in Q1FY17.