Key takeaways of the conference call

Standalone order intake of Elecon Engineering for FY14 stood at Rs 611 crore (vs Rs 514 crore in FY13) and the order book as end of March 2014 was at Rs 266 crore (vs Rs 206 crore as end of FY13)

Order intake for FY14 of Elecon EPC, a subsidiary of the company was Rs 496 crore and unexecuted order book as end of March 2014 was Rs 1164 crore.

Order execution for large gears typically takes about 8-12 months and for medium and small it will be 4-6 months with the average execution cycle for gears will be about 5-6 months. For MHE orders it will be 24-36 months.

For 2014-15 the company expects revenue of Rs 600 crore each in India gear business and EPC business.

Expects a revenue growth of 10-20% in case of Radicon Transmission, the UK based subsidiary in current fiscal. The company looking to re-gain its market shares in certain market where it has shrunk.

On consolidated basis the company will repay debt of about Rs 106 crore in FY15.

Power sector constitute the largest chunk of business for both gears and MHE business of the company.

Looking for bringing in strategic investor for MHE business but the environment right now is not conducive for that.

Of the debtors of Rs 700 crore of EPC subsidiary the retention money is Rs 240-250 crore.

Large size gear segment has seen improvement in orders placement but the small and medium has not seen such improvement. Order placement may see improvement at the winter time.

Gears exports were Rs 62 crore in FY14 compared to Rs 59 crore in FY13. Exports to Far East were better.

Over a period of time lot of sanctions are pending with the government. Once that sanctions are cleared, the order finalizations will pickup and resultantly there will be improvement in pricing as well with absorption of surplus capacity in the industry. The company expects this is at least 18 months away for this to happen. Any government will at least take 12 months to put tangible change in policy and administration change.

Various cost control measures have resulted in lower material cost and staff cost. The company has surplus capacity and once the demand picks up the company will capitalize on it. Once volume keep increasing the margin will also improve.