Key takeaways of the call

Order backlog as end of Dec 31, 2017 was Rs 1071 crore of which for manufacturing order book was Rs 1017 crore and that of project business was Rs 54 crore. Of the manufacturing order book domestic order was Rs 96.2 crore, exports is Rs 54.5 crore, deemed exports is Rs 116.3 crore and domestic railways order book is Rs 749.5 crore. Entire project order book is from domestic market.

Manufacturing order inflow for Q3FY18 was Rs 98 crore compared to Rs 51 crore in corresponding previous period. Manufacturing order inflow in Q4FY17 was about Rs 95 crore and surely Q4FY18 order inflow will be much higher than corresponding last period.

For FY18 the company is sticking to order guidance of Rs 380-400 crore of revenue for manufacturing business with an EBITDA margin of 8-9%. The project business revenue was expected at Rs 58 crore for current fiscal.

In Hydro segment order for new machines are very strong and will see OI in next few months. The company entered refurbishment of existing hydro electric power projects upto 60 MW. Refurbishment is done for improving efficiency and extending life of the project. Addressable market is 50-60 crore for a year spread over 7-8 projects a year. The company has bagged one order in last month.

Overseas order inflow visibility is good for next fiscal. On gas engines segment, the company will benefit greatly from increased business of the partner.

Terms of trade turned tough especially with receivables. The receivable days are elongated now.

Capacity utilization continues to be at low level for next 18 months. Not foresee any capex other than Rs 12 crore of capital expenditure envisaged for railway business.