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Transformers and Rectifiers held its conference call on 3rd Feb 2017 and was addressed by key management
Key Highlights
As per the management, PGCIL has done a fantastic job regarding its capex and capitalization. Now SEB's have to start ordering and make sure the power reaches to the final customer. Management expects an opportunity of around Rs 60000 crore from SEB in the coming years.
On export side, while conventional transformer exports are growing steady, there is a huge scope for the furnace transformers. Company has delivered its first such 3rd party order of 400 MVA in Algeria. With this, export side market has opened up for the company. Management expects Rs 150 crore of sales to come from exports in FY'18.
Debtors are in range of around 140 days as on Dec'16. Management aims to reduce it by further 20 days in coming quarters.
Average capacity utilisation is around 65% across industry levels.
Management expects Ebidta to be much better going forward due to improved product mix and lesser competition.
Order book stands at around Rs 960 crore and management expects Ebidta margin of around 10-12% compared to past year margins of around 8-10%.
Competition has reduced in 400 KV and less than 400 KV transformer segment. Enquiries have increased in this segment.
Solar is another huge opportunity for the company and management is very bullish on the same. The company is a key player in solar transformer side in less than 132 KV segment.
Key SEB's including SEB's from states like Tamil Nadu, Karnataka, Telangana, Gujarat, MP, UP, Punjab, Haryana, Delhi are major SEB's whose current tender has come out.
No impact of demonetisation during the Dec'16 quarter.
Management aims to cross Rs 1000 crore in revenues in FY'18.
Management is still evaluating its Rs 125 crore of funding plans from the market but no firm plans as to raise the money in near term.
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