Key takeaways of the call

Order intake for the quarter ended December 2017 stood at Rs 390.6 crore, a jump of 66%QoQ and a growth of 15%yoy.

Order book as end of Dec 2017 stood at about Rs 800 crore or around 7-8 month of sales. Of the order backlog about 70-75% is systems and balance 25-30% is accounted by service and transaction put together.

Q3FY18 was moderately challenging with the company turning in positive operational growth excluding one off. Seen positives of projects ordered to cash which we launched during last quarter is helping the company.

The company is remaining focused on building order backlog with better product mix.

Outlook of market segment such as utilities, renewable, O&G, transportations and smart cities are positive for all connected products, edge control and enterprise software products of the company. Connected products are basically the power distribution equipments which create infra for carrying current from one place to another place. Similarly ‘Edge control' is Monitoring and controlling infrastructure products and Enterprise software is the one that is primarily used for analytics.

On the other hand the conventional generation i.e. coal based generation nothing is happening with government focus on renewable generation. This segment continues to be negative.

Similarly the demand is positive for connected products and edge control from segments such as cement, data centres for connected products and edge control. While the demand is positive for connected products in case of water and building it is negative in case of edge control.

The company gets about one third of transformer business from Solar segment and this segment continue to be positive.

Focus on cash inflow through ordered to cash projects has resulted in lower interest outgo in Q3FY18. All known risk on debtors' level has been covered. In last 6 months Rs 103 crore of positive cash flow in last six months and the company has reduced total borrowing by about Rs 73 crore during June-Dec 2018 period. The company expects this trend/journey to continue going forward.

Some lines/segments which is not growing the restructuring in currently on and the company expects to complete it by March 2018. But in case of other lines that are growing the company is pushing for growth with cost control. So the work on to make the growing line and products in that portfolio robust will continue in 2018-19. Allocating resources what is required for each segment. So it's a combination of restructuring and growth.

Main focus of the company will be on bottom-line growth even though the company expects its FY18 sales to be higher than last fiscal figures.

Normalized EBITDA for 9mFY18 was 4.5%.

The company working to recover all the provisions (for bad debts) it made in quarter ended June 2018 it recovered about Rs 8 crore.