Key Highlights

The company has received orders worth of around Rs 730 crore in Sep 17 quarter as compared to Rs 1250 crore in Sep 16. For H1 ended Sep 17, order inflow stood at Rs 2311 crore up by 13% YoY. Lower order inflow during Sep 17 quarter was largely due to lower orders from PGCIL.

Expects orders from Railways, renewable energy side, discoms and private sector to compensate the loss in orders from PGCIL. Orders to start flowing from PGCIL only after about a year.

Order backlog stood at around Rs 8100 crore as on Sep 17 up by around 5% on YoY basis. This includes around 45% of orders which are HVDC orders. There is one more HVDC order expected to come on tender from Bangladesh in FY 18, while the rest of orders are drying up due to lower tendering from PGCIL.

Net sales were up by 4% in Sep 17 quarter. Deferment in execution was due to GST related issues. Company will be able to recover the loss in sales in coming quarter.

Strong margins were due to closure of projects in Sep 17 quarter and cost efficiencies helped higher margins. Expects to hit double digit margins in next 2 quarters. However all depends upon the pace of execution and steady raw material.

There is pricing pressure in the market.

Exports account for around 10-12% of total order book and sales.

There are no companies of GE in India that is competing with GE T&D businesses.

Railway electrification will play a significant role in order book in coming 2 years as around Rs 35000 crore is expected to be ordered out by FY 21. Companies having local manufacturing base will be given the preference.