Key Highlights

There were hardly any wagon orders from Indian Railways in FY'16. As against expected 8000 wagons order for FY'16, the Railways placed orders only of around 3000. Most of the wagon tenders for FY'15-16 which was expected around Sep'15 opened only in Jan'16 and is likely to be finalized in Mar'16 or April'16.

Consolidated order backlog as on Dec'15 is around Rs 2800 crore. Majority of these orders are from overseas subsidiaries. Parent has order book of Rs 600 crore. Indian railways wagon order is around Rs 30 crore

Legacy orders of the past were completed mostly in Dec'15 quarter. No further losses expected in the order book which the company carries as on date. Prices of these new tenders are better now and there is no more irrational competition.

The only worrying factor as per the management, is that the Railways own demand and traffic remained subdued and not as per the expectation largely due to slower economy.

Going forward not in the immediate quarters, but I the medium term management expects good orders from Dedicated freight corridor segment and also from private players. Additional fleet will be required which will be for fresh fleet of wagons which will boost the overall wagon demand.

The company now is qualified for bids for coaches, Metros, defense and also in various export countries. Thus dependency on wagons which once contributed around 65% of order book in FY'12-13 is no more. Also the dependency on railways has come down.

On standalone basis, EMU business started executing going on as per the stream. Defense orders prototypes have been approved revenues to come in from Mar'16 onwards. The company will bid for upcoming Metro projects based on credential of Italian subsidiary. There is a big chunk of metro projects coming up in various parts of the country

Italian production subsidiary received a contract of 65 M Euro from Italian railways. The company reported net revenue of around 12 M Euro for Dec'15 quarter and Ebidta positive of 1 M Euro. Earlier the company was focusing only on Italian market but now is participating in other countries. Design will be from Italy while the manufacturing will be from India.

French subsidiary company reported around 15 M Euro revenue and is also Ebidta positive. The company is overall operating at steady pace.

The company has announced the merger of the Indian holding company with all the subsidiaries globally. Broadly no financial impact at the consolidated level of merger of these subsidiaries with the holding Indian company as these subsidiaries are 100% owned by the Parent.