Key Highlights

Order inflow in June 17 quarter stood at Rs 741 crore as compared to order inflow of Rs 436 crore in June 16 quarter. International order inflow stood at Rs 624 crore in June 17 quarter.

Current order book position as on June 17 stood at around Rs 4000 crore. Erection account for around Rs 2200 crore, civil around Rs 950 crore and rest from O&M activities.

Issues remain with the domestic erection business activities. However overall erection share is coming down in total revenues which stands at around 40% currently compared to 60% 2 years back.

Lot of tenders expected from NTPC, Reliance, Dooshan etc in FY 18 in Power Thermal space. Currently there is a visibility of around Rs 8000 crore worth of tenders for Erection in FY 18 in India.

Overall, FY 18 should see healthy order inflows. Expects order book to grow by around 15% in FY 18.

Expects erection in international business to remain very strong in FY 18 driven by strong order book.

In civil, the company has diversified into power T&D, railway electrification, Oil & Gas sector etc which helps in better order book.

The company will also play its role in upgradation of the refineries to BS VI norms. Expects tenders of around Rs 25000 crore to be bid for the upgradation of the refineries in FY 18.

Margins in domestic erection business is around 10% while internationally is hovering around 13-14%. Margins in Civil works are around 7-8% while for O&M, its hovering around 16%.

Thus, FY 18 should see higher execution of international Erection and O&M services which will lead to higher overall margins for the company.

Working capital days are hovering around 150 for the company. Higher working capital is due to higher retention money.

With higher international orders getting executed, where there are good advances and other mobilisation ways and higher O&M activities, overall working capital should be lower in FY 18. However, some working capital requirement will increase due to GST related issues in FY 18.

No major capex in FY 18.

Current debt stands at around Rs 160 crore as on June 17.

The company will receive some benefits of around 2-3% from GST in form of input credit on some of the duties, which earlier it was not able to claim.

Overall tax rate will come down, as tax rates in some of its African subsidiaries is at 15-18%.