Key Highlights

The company has received orders worth of around Rs 4310 crore in FY 17, up by 28% on YoY basis. Order inflow during Mar 17 quarter stood at Rs 1150 crore, up by 5% YoY. Major orders are received in TBCB space, in 765 KV GIS space and in balance of system in Solar space.

Order backlog stood at around Rs 8150 crore as on Mar 17 up by 2% YoY.

Strong sales growth of 23% in FY 17 as various projects got commissioned and completed. Expects a steady state of performance going forward given strong order book.

Key orders from various utilities include: 400/220/132KV GIS substation at Hardoi road in Lucknow from UPPTCL, GIS extension of Gumma substation from HPPTCL, 400/132KV switchyard extension at Kahalgaon from NTPC, 765&230KV GIS in North Chennai from BGR Energy Systems Limited, Multiple orders of 765/400/220 KV substations, reactors and transformers from Power Grid in states of Karnataka, Jharkhand, Rajasthan, Maharashtra, MP, AP, Haryana and UP, 400/220 KV GIS Substations at Gurgaon, Palval area in Haryana from Sterlite Power Grid Ventures Limited under TBCB etc.

Public sector will be the main driver for investments in FY 18 as private sector is expected to continue to remain cautious.

While Uday has seen some improvements in some States, operational improvement in many states is still to be seen. Distribution side have a great business opportunity now to complete the last mile connectivity as lot of activity is seen on transmission side.

India added around 15.3 gigawatt (GW) in solar energy space in FY 17 and more opportunities are expected in FY 18 based on the current tenders that are out.

Market grew by around 10% in FY 17 on YoY basis in volume terms in transmission industry space for the products that the company caters to. Expects around 5% of volume growth in FY 18 due to concerns from private sector players and not much capacity addition happening in thermal space whereas renewable will aid in overall capacity addition.

Retention amount is around Rs 10 crore in Mar 17 quarter. .

Growth in FY 18 will be more of execution lead growth as there is limited scope of margin improvement. Margins will improve due to economies of scale coming in from strong execution.

The company had received good collection in past 6 months which has helped in reducing the overall borrowing and thus the interest costs. FY 16 saw around Rs 700 crore as the average borrowing which came down to Rs 500 crore in FY 17 and endeavour is to bring it down further going from there on.