In interaction with Mr. Ankur Patni Executive Director on 25 May 18
Key Highlights
Recovery witnessed post Nov 17 resulting in increase in sales in engineering segment.
Encouraging revenue visibility in engineering segment. Ventured into solid waste to energy in India and globally.
Rs 550 crore of order book as on Mar 18 in engineering. Rs 150 crore of orders received in Mar 18 quarter and Rs 450 crore of orders backed during the whole year.
Bidding pipeline is close to around Rs 4500 crore. Expects significantly higher order inflows in FY 19.
Power, steel, large petrochemical facilities are some of the industrial segments which augers well for the order book of the company.
Of the Rs 1300 Srilankan order around Rs 199 crore is booked till FY 18. This includes Rs 120 crore of order booked in FY 18 alone. Expects around Rs 400-450 crore of the order will be executed in FY 19 and balance in FY 20. Bidding for such large orders in international market in FY 19.
The Srilankan sales has mitigated all the GST related orders which could not get executed due to tax disputes. However, the disputes are over and orders will be executed soon.
Eyeing waste related projects in coming years.
In chemical division, pressure on margins was due to sudden increase in raw material costs, which will eased off as the year goes by. The Ankleshwar unit got the US FDA approval and sales of speciality chemical segment to Pharma companies will commence in FY 19. These resins have better margin profile.
Expects chemical segment to bounce back in terms of margins and should get normalized in FY 19.
Capex of around Rs 50 crore in FY 19 including Ankleshwar unit.
The losses in consumer business segment got contained and the benefits will continue in coming years. Increased the reach in rural segment in this business. Introducing products in new markets and working with government and pvt bodies in this segment
The economy in general will perform better in coming quarters and water treatment industry should benefit significantly from industry growth and better rural economy.
Expect increased flow of orders from central and state governments in FY 19 and election year will also play a significant role in ordering.
Reduction in losses seen in subsidiaries. The losses at PAT level for FY 18 stood at Rs 8 crore as compared to Rs 18 crore in FY 17. Expects the performance to improve further in coming year. Better product mix and higher value added product sales are driving the growth.
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