WIL continues to be a long©\standing supplier in the DNA (defence, nuclear, aerospace) businesses. The company is currently executing orders related to flight hardware for ISRO in aerospace business, AKASH missile motor©\casings fabrication and integration for Bharat Dynamics in missiles business, Hairpin Heat Exchangers for NPCIL in the nuclear power plant equipment business and gearboxes for the Offshore Patrol Vessels (OPV) for Goa Shipyard in the marine gearbox business.

Order book on hand as on Nov 1, 2018 stands at Rs 781 crore and of which 53% is accounted by strategic manufacturing businesses. The company has a healthy pipeline of new orders that are in advanced stages of negotiations.  

This quarter¡¯s performance is in line with the company¡¯s strategy of maximizing revenue from its core manufacturing business. In Q2FY19 over 70% of the operating revenue has come from the core manufacturing business of the company comprising strategic sectors like aerospace, missiles, defence, nuclear, gear and centrifugals.

The capacity utilization at Walchandnagar facility is about 65% and the plant is flexible and accommodate various products with capacity for one product can be used for others depending on the requirement. However the capacity utilization in the Foundry business was approx 80% plus, which increased significantly.

EPC ¨C In 2009 the company has bagged two large EPC orders one in TNEB (worth Rs 1125 crore for modernization of 12 old units and setting up of CPP) and another in Ethiopia (Sugar project )and this two orders have accounted for majority of the losses in last five years. However the company with efforts and project monitoring is close or on track on completion of two outstanding EPC contracts. On track to complete critical work at 7 priority sites for the TNEB project in order to meet the upcoming crushing season and have started realizing retention money.

Twelve projects of TNEB ¨C for 7 projects works the in advanced stand and the plan is to completed work before this season start i.e. Nov 2018 end. Not going to take EPC job for the sake of topline unless it is with good profitability. Remaining projects will be completed in next 18 months. Balance retention money as far as TNEB project is Rs 14 crore.

Ethiopian project completed in 2014 and running 13000 tpd sugar cane availability is not there to support large sugar plant not more than 2000-2500 tpd. Operational expectance certificate will be given by Ethiopian government and the testing will be done by end of November 2018. Retention money of Rs 60 crore will be received in 3-6 months from OCC certificate which is expected by Dec 2018.

The company going forward will be selective in taking EPC orders that fit its strategy of profitable growth.

The company is Tier II consultant for defence and aerospace and its very difficult to replicate a new entrant to bring the specialized skills and knowledge.

The company have received Industrial License for manufacturing of Bullet Proof Jackets, Vests and Body Armour.

CAPEX has been committed to enhance capabilities to meet the requirements of the upcoming 10 indigenous nuclear power plants.

Aerospace ¨C launches increased from 6 to 18 now. Well equipped and adding some facility to cater to the requirement of ISRO. In missiles the company is associated with Akash missiles with it suppling for about 20-25 missiles per month.

Receipt of first order for motor©\casings of India¡¯s next generation platform for launching small satellites ¨C SSLV from ISRO. - Completion of the PPT Test facility (For Proof Pressure Testing of flight hardware segments) for ISRO.

Completion of 100 plus centrifugal machines production in the first half of the fiscal year (compared to a total of 84 machines produced in the entire fiscal year 2017©\18) ¨C a record in WIL¡¯s history.   The company with rupee depreciation is looking at export of centrifugal machines.

Post family separation only Walchandnagar, Bombay cycles are the companies in the fold of the family and rest are handled by other

The company is looking at 22-25% of EBITDA margin going forward.

The company is not planning to raise money but the resolution in this regard is just an enabling resolution.