Key Highlights

Lumpiness in hydrocarbon orders hence Dec 17 quarter was not great in order booking. Hardly any tenders being floated.

Order inflow for Dec 17 quarter stood at Rs 114 crore as compared to Rs 270 crore for Dec 16 quarter. Order inflow for 9 months ended Dec 17 stood at Rs 2066 crore as compared to Rs 2523 crore for 9 months ended Dec 16.

Order book as on Dec 17 stood at Rs 8301 crore. Average execution period of the order book is around 32-36 months.

For 9 months ended Dec 17, around 55% of total order book is from consultancy segment while rest is from LSTK segment. Within consultancy, around 73% of order book is from domestic market and rest is exports.

Higher revenues for 9 months ended Dec 17 is largely due to execution of 2 orders which were required to modify and was pending for execution since long. Payments were also received for these orders.

Drop in interest rate and buy back resulted in lower other income

LSTK should pick up well going forward. For past 1 year only EPC segment orders coming in, but things should improve as green field orders come in.

Around 20% of order book is from petrochemical segment.

25% increase in turnover for FY 19 primarily due to turnkey segment as big orders will be executed.

Rs 2300 crore order inflow guidance in FY 18 and order inflow should be around Rs 2100-2200 crore for FY 19.

Refinery order revenues will be booked in FY 19. Rajasthan refinery order will be a major order Rs 40000 crore plus order which will be broken up in various tranches. Company will play a big role in LSTK and on consultancy side. Mangalore refinery another big order which is expanding from 300 TPA to 900 TPA. Feasibly study in southern part of India petrochemical projects.

Rs 4000-5000 crore is the order tendering visible in FY 19 at least and around Rs 8000-10000 crore for FY 20.

5-7% margin expected for LSTK on an average excluding any provisions or write backs.

Rs 37 crore write backs in 9 months ended Dec 17 results which is one off for LSTK. But such provisions and write backs will happen and will increase as LSTK turnover increases.

Blended margins for FY 19 will be lower as LSTK will have higher turnover.

25-30% margin in consultancy segment for FY 19.