Q2 FY'15 was first full quarter where entire CPCB 2 norms were implemented for engines. During the quarter, power gen sales volume was up by around 7-8% while price together with value growth was around 29%. The costs were up by about 10-12% vis a vis a price hike of about 15%.

The demand for power gensets was also strong in Q2 FY'15 on YoY basis. The prices were also stabilized in the market. Sentiment was good and management continues to remain optimistic in the power gensets business. Management expects volume growth of around 12-15% in power gensets for FY'15.

The company has market share of around 35-37% in engines below 30 KVA and has gained some market share.

In power segment, DV series engine and gensets sale stood at around Rs 70 crore in H1 FY'15 up by 50% YoY.

Exports were flat on YoY basis in Q2 FY'15. Exports stood at around Rs 100 crore in H1 FY'15, up by about 4% YoY.

The Industrial market is yet not on track, but atleast the fall has been restricted. As per the management, it will take some more time before which this segment will start showing positive growth.

The company has completed about 14 gensets orders from NPCIL of the total 16. The remaining will be over in Q3.

The company is on track to launch its Power Tillers in Q3 FY'15. Target is to reach sales of around 5000 tillers before FY'15.

Operating margin remained under pressure during the quarter and in H1 FY'15. As per the management, this was due to some sales mix issues and higher employee related costs. There were certain employee costs and R&D costs particularly related to power tillers that were front ended and thus affected the margins.

The company has cash and equivalent of more than Rs 740 crore and management is looking at various organic and inorganic growth options.