Key takeaways of the call

Order intake for Q2FY19 was Rs 339 crore of which Rs 229 crore is from outside the group and Rs 100 crore from inside the group, which includes order from group companies in Indian as well as exports. The order backlog as end of Sep 30, 2018 was Rs 760 crore. Order backlog is largely outside group only as the inside group orders are of just 1 month execution cycle.

Of the order intake for Q2FY19 about 54% is systems and 27% transactional and 19% was services.

By December 2018 the company will done with plant restructuring. The company is reducing manpower by 18% in Kolkata and Vadodara. Cutting down workforce by 18% will result in annualised savings of Rs 16 crore for the company.

In Q2FY19 the Forex impact is Rs 12 crore that include impact of Rs 5 crore on account of material cost and Rs 7 crore towards MTM loss by revaluation of payables. Employee cost for the quarter account for one off ESOP and impact on account of this was Rs 4 crore.

In Quarter ended Sep 2018, the systems (equipments & projects together) accounts for 61% of the sales with transaction and services account for 23% and 16% respectively. Slide 4 depicts how the revenue mix will change over the period.

Gross debt as end of Sep 2018 was Rs 410 crore and cash & bank balance was Rs 4 crore.

The company start hedging from six months ago and once those projects get executed the benefit will come

The company is more focused towards digitalisation and more towards technology.

High tech products such as Relays and GIS panel are the one that is imported. The Group as a whole have strong vendor base in the country.

The company is working to improve the revenue by leveraging the large sales force of the group.

Transactional and services gives the company a double digit margin. Some of the products in equipments & projects will give double digit EBITDA margin and L1 products gives single digit margin.

As far as exports are concerned the company is looking at both Middle East and Africa.

Growth for data centres are driven by in country data storage, BFSI, e-commerce, telecom and government digitisation initiatives. Similarly investment in SMART campus.

O&G as well as Mining, Minerals and Metals are taking time to rebound. While steel sector expects to invests in only opex for next 2 years, the cement sector is consolidation underway with grinding units planned to support urbanisation and infra development. The O&G segment is recovering with fresh investment i.e. HPCL, Vizag, west coast refinery, investment to support Euro 6, petro chemicals demand on rise.

Secondary power distribution is growing a lot. The company will be aggressively growing relay products.