Key takeaways of the conference call

New order bookings for quarter and nine month ended Dec'18 were Rs 1441 crore (up 84%yoy) and Rs 2770 crore respectively. Of Q3FY19 order intake the share of private orders were about 45-50% with balance coming from PGCIL and state utilities. In addition the company has won Rs 500 crore worth of orders signed/won in Q4FY19 till date.

During the period the company won few major landmark deals from PGCIL and the State utilities, the biggest one being the 765/400/220 kV substation package in Bhuj from Power Grid Corporation of India, for their Green Energy Corridor Program.

Order book of the company at Rs 6400 crore as end of Dec 2018 remains good and the company is well positioned to address the energy transition of the country. Of the order book about 60% is from private with balance equally shared by PGCIL and Sate utilities.

Market going forward is stable especially TBCB orders, of the Green corridor 3 package given to power grid.

Transmission market in 2019 is expected to be better compared to 2018 driven by TBCB orders and Renewable power evacuation projects. REC & PFC has finalized tenders in 2019. The renewable projects awarded by SECI which are delayed by land issues are expected to move translating into orders for transmission equipments.

Expect traction in ordering/awarding in case of evacuation projects relating to SECI wind/solar tender projects from July-Sep 2019 quarter.

Most Bangladesh transmission projects are ADB funded and the competition will be Indian companies and some Chinese companies. The margin will be similar to India. The last date for bid submission for Bangladesh HVDC project is March 2019. Price bids are expected to open some-where by July 2019 and awarding expected by Sep 2019.

Srilanka HVDC order is not shelved but the timelines have been shifted.

Unexecuted/outstanding order book of Champa - Kurukshetra order was about Rs 180-200 crore.

Better margin for 9mFY19 despite new orders coming at relatively lower margin is largely due higher volumes. Share of HVDC in STO in 9mFY19 was down at Rs 236.1 crore compared to Rs 674 crore in the corresponding previous period. Sale excluding HVDC has registered a growth of 6.5% to Rs 3087.4 crore in 9mFY19. Sale excluding HVDC was up by marginal 0.5% to Rs 1084 crore in Q3FY19.