Rajiv Mittal, Managing Director and S Varadarajan, Executive Director addressed the call.

Highlights of the call:

For the quarter ended June 2018, Va Tech Wabag reported a 3% rise in its consolidated sales to Rs 687.85 crore. OPM fell 60 basis points to 6.2% which saw OP fall 7% to Rs 42.45 crore.

PBT fell 12% to Rs 22.70 crore.

After Minority interest and share of profit/loss of associate, net profit grew 55% to Rs 13.00 crore due to fall in tax provision.

During the quarter Indian business contributed 27% of the total revenue. Revenue grew 4% to Rs 189.84 crore. PBIT grew 25% to Rs 30.76 crore and accounted for 18% of total

During the quarter Rest of the World business accounted for 73% of the total revenue. Revenue stagnated at Rs 515.32 crore. PBIT grew 19% to Rs 140.56 crore and accounted for 82% of total

The company continued to strengthen its global presence through efficient execution of key products across the group.

Overseas revenue was primarily driven by progress on key large projects & IIUs.

Profits were positively impacted by overseas project progress and cost control initiatives in Europe also aided profitability.

The company incurred forex loss of Rs 2.34 crore. This was primarily driven by translation.

During the quarter taxation slumped 37% to Rs 10.09 crore. Tax incidence fell from 61.7% to 44.4%. Improved Effective Tax Rate was driven by geographic mix of profits.

Export incentives recognition was deferred from Q1 FY 19 due to non-opening of portal by the Government. This resulted in lower EBITDA and PAT on standalone basis.

Order book for the quarter ending June 2018 grew to Rs 7,358 crore. During the quarter order intake stood at Rs 528 crore out of which Rs 316.5 crore was for the Indian operations and Rs 311.5 for overseas operations.

Apart from this the company has framework contracts of Rs 700 crore.

Revenue guidance for FY 19 stands in the range of Rs 4000-4200 crore

Order Intake guidance for FY 2019 stands in the range of Rs 5300-5700 crore.

The company secured order worth Rs 170 crore from NMDC

The company expects to collect 60% of Rs 600 crore receivables from APGENCO in next 2 quarters. Another Rs 40 crore should come by FY 2019 end.

As of FY 2018 end the company had Net working capital of 98 days. Currently it is around the same.

Receivables are also marginally higher than March 2018 figures.

The management is confident of achieving order guidance based on the pipe line of orders it has.

Forex loss was largely due to Turkish Lira due to strong devaluation of its currency.

The company is not in hurry to take orders. It is mostly looking at margins.

Namami Gange project is getting delayed. The company has bid for Allahabad and Kanpur.

The Namami Gange project should be around Rs 1500 crore project. The company will try to keep equity partnership at below 15%.

The company has almost reduced losses in turkey to NIL.

The company is turning around in Austrria.

End of June 2018 gross debt was Rs 475 crore

Most of Orders will come from Delhi, Mumbai and Chennai.

The company is not seeing any downside to its order guidance as it is realistic guidance and not optimistic guidance.

The company had 10-12 crore of export incentive in last year quarter but this is expected to come in the ensuing quarters.