Key Highlights

The company has received orders worth around Rs 783 crore in Dec 17 quarter as compared to Rs 1118 crore in Dec 16 quarter. For 9 months ended Dec 17, order inflow stood at Rs 3094 crore down by 2% YoY. Lower order inflow during Dec 17 quarter was largely due to lower orders from PGCIL.

While orders from PGCIL has slowed down, orders from SEBs have picked up. Infact SEB tendering is almost double for first 9 months ended Dec17, compared to FY 17. Telengana, Tamil Nadu, Karnataka, Rajathan, MP, Chattisgarh, West Bengal, UP, Bihar are some of the SEB which is tendering out strongly.

One of the reasons of PGCIL slowing down is TBCB bidding process. Also TBCB itself is slowing down which is resulting in lower orders for PGCIL to offer for tendering.

Expects orders from Railways, renewable energy side, discoms and private sector to compensate the loss in orders from PGCIL. Orders to start flowing from PGCIL only after about a year.

Exports continue to account for around 10% of total sales and order book.

Margins to remain around current level. Strong margins is due to strong execution and tight cost controls. All the past actions are getting converted into savings and execution for the company.

There has been a tremendous improvement in cash flows and retention money recovery. The company which started with net borrowing of Rs 450 crore on Mar 17 is actually net cash surplus of around Rs 280 crore as on Dec 17.

Order backlog stood at around Rs 7200 crore as on Dec 17 more or less flat on YoY basis. This includes around 40% of orders which are HVDC orders.

There is no pricing pressure in the market, as most of the players are bidding with maturity and there is no irrational competition.

Railway electrification will play a significant role in order book in coming 2 years as around Rs 35000 crore is expected to be ordered out by FY 21. Companies having local manufacturing base will be given the preference.