Key takeaways of the call

EMP order book as end of December 2017 was Rs 4850 crore up from Rs 4200 crore in corresponding previous period. Of the current order book international orders were Rs 1750 crore and domestic orders were Rs 3100 crore.

EMP order inflow in domestic market was Rs 225 crore and from international market was Rs 330 crore in Q3FY18. Of the domestic order majority came from infrastructure space such as metro, rural electrification drove the order inflow.

Green shoots in the form of strong rural economy and consumer spending are visible in domestic market.

Projects relating to Expo 2020 are getting awarded to main contractors. The company managed to pick 3 risk mitigated orders in international market.

In case of unitary cooling products, Q3FY18 had the benefit of channel restocking before peak season as well as pre-buying due to changes in energy efficiency norms for fixed speed air-conditioners from 1st January 2018.

Room Air-conditioner market witnessed a volume growth of 7% in Q3FY18 and 12% for 9mFY18. Here the market growth is secondary sales and not the primary sales to channel by the company. The market share of the company in room air-conditioner was 23% in Q3FY18.

Inverter air-conditioners account for about 17% of split air-conditioners sales of the company.

Voltas launched India's First window ac with inverter technology. This gives option for a window air conditioner customer choice to go for better product.

The company continues to be number four in the air cooler market. The volume for 9mFY18 was higher than 9mFY17.

The energy efficiency norm change is only for fixed speed air conditioner. So the company has not increase price in case of inverter air conditioners. On fixed speed air conditioners currently only one star, two star and three star. There is nothing like five star in fixed speed air-conditioned in the market. The company is contemplating four star fixed speed air conditioner. The earlier five star fixed speed air conditioner has now become 3 star and earlier three star become one star. So the customer will now get 3 star fixed speed air conditioner at earlier five star fixed speed air conditioner price. So only on star rating basis there is price increase. So the for the same price the customer getting lower star rating product.

Carillion PLC, a UK Contractor, has filed for compulsory liquidation in January 2018. The company's Branch in UAE and its joint venture company in Oman are currently executing MEP Projects as a Subcontractor, wherein Carillion PLC is a joint venture partner of the Main Contractor. Based on the initial assessment done and contractual remedies available, the Company does not foresee a material risk to its dues under these contracts. Some delays in receiving certifications and payments may be experienced. Total outstanding due in this project is around Rs 177 crore as of date. We are monitoring the situation through continuous communication with the client. The project is continuing and work goes on as usual.

Lower revenue of Engineering Products & services segment in Q3FY18 was mainly on account of slowdown in textile business due to lingering effects of GST combined with changes to export incentive schemes and increasing international competition and yarn price volatility. In Mining and Construction Equipment, Mozambique operations continue to drive the performance. However the mining activity in India remains tepid as re-auctioned mines are yet to commence operations. But project such as Bharatmala etc., are to spur demand of crushing and screening equipment.

JV consumer durable business - Product expected to launch in H2CY2018