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The company held its conference call on 17th February 2017 and was addressed by key management.
Key Highlights
As on Dec'16, the total order book of the company stood at around Rs 3900 crore. Erection order book is of around Rs 1800 crore, Rs 1100 crore from Civil and around Rs 900 crore is from O&M business. Around Rs 700 crore of the total order book is from international market and rest are from domestic market.
Of the total sales in Dec'16 quarter, around Rs 140 crore is from erection contracts as compared to Rs 205 crore in Dec'15 quarter, around Rs 40 crore from civil contracts as compared to around Rs 54 crore in Dec'15 quarter and around Rs 113 crore revenue from O&M services in Dec'16 as compared to Rs 95 crore for Dec'15 quarter. Of the total sales for Dec'16 quarter, around Rs 240 crore is from domestic market and rest from international market as compared to Rs 300 crore for Dec'15 quarter from domestic market and rest from international.
Of the total sales in 9 months ended Dec'16, around Rs 485 crore is from erection contracts as compared to Rs 580 crore in 9 months ended Dec'15 period, around Rs 125 crore from civil contracts as compared to around Rs 135 crore on YoY basis and around Rs 333 crore revenue from O&M services in 9 months ended Dec'16 as compared to Rs 259 crore for 9 months ended Dec'15 period. Of the total sales for 9 months ended Dec'16, around Rs 755 crore is from domestic market and rest from international market as compared to Rs 878 crore for 9 months ended Dec'15 from domestic market and rest from international.
Net sales was lower by around 14% in Dec'16 quarter largely due to demonetization. Further there were some issues like in NTPC 3*360 MW contract related to semi finished products which got over in Jan end, availability of material issues for Navi Nagar project etc, which affected the overall sales for Dec'16 quarter. Management expects its cascading effect to continue in Mar'17 quarter as well.
So far in FY'17 the company has received new orders of around Rs 1700 crore and expects to end the year with an order inflow of around Rs 2000 crore. Management expects the year end order backlog of around Rs 4100 crore as compared to Rs 3400 crore as on FY'16. Overall, for FY'18 management expects net sales growth of around 18-20%.
The company is L1 in around Rs 300 crore of orders.
Internationally in Middle East, Saudi Arabia and Oman are doing well and company has received orders from there. It is also executing the order in Bangladesh which is subcontracted from L&T.
As per the management, around 11000 MW old plants will be shut down in next 5 years by NTPC alone. NTPC already have started floating tenders regarding the same.
Going forward lot of orders are expected in next 13th 5 year plan due to Reconstruction, SER, SEB rehabilitation and from various other sources.
In Non power business line, the company is undertaking a Raliway electrification lines order of Rs 200 crore currently .
Current debt is around Rs 210 crore, debtors of around 255 crore or 75 days and cash of around Rs 67 crore.
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