Anil Gupta Chairman and Managing director of the company addressed the call:

For the quarter ended June 2019, sales grew by 22% to Rs 1081.36 crore. OPM was higher by 80 bps to 10.5% due to higher sales and better product mix.

OP grew 32% to Rs 113.94 crore.

PBT was up 41% to Rs 71.01 crore.

PAT increased by 42% to Rs 45.81 crore.

For the quarter, sales from the Cables segment stood at Rs 854.89 crore, up by 23% and accounted for 72% of sales. PBIT from the same was higher by 23% to Rs 89.10 crore and accounted for 66% of total.

For the quarter, sales from the stainless steel wire Segment stood at Rs 31.79 crore, up 2% and accounted for 3% of sales. PBIT from the same was down 39% to Rs 1.92 crore and accounted for 1% of total.

For the quarter, sales from the Turnkey division stood at Rs 307.38 crore and accounted for 26% of sales. PBIT from the same was up 72% to Rs 44.30 crore and accounted for 33% of total.

Institutional Cable Sales (Domestic) is Rs 423 rore against Rs 358 crore.

Institutional Sales (Export) sales stood at Rs 107 crore against Rs 79 crore.

So total Institutional Sales stood at Rs 530 crore compared to Rs 437 crore.

Growth in Institutional Sales in Q1 was around 21%.

Sales through dealer/distributor network stood at Rs 366 crore against Rs 298 crore, up 23%.

Various brand building exercises and increased focus of the company in expanding its dealer/distribution network would yield results in future.

Recently the company associated itself as co-sponsor (Ground) for ongoing India-West Indies ODI & Test series in West Indies.

The total active working dealer as on 30 June 2019 was more than 1500.

EHV sales in Q1 stood at Rs 78 crore against Rs 39 crore, up 100%.

EPC sales (other than cable) stood at Rs 195 crore against Rs 158 crore, up 23%.

In Q1 though interest grew 15% to Rs 32.96 crore, it has decreased in percentage terms to Net sales from 3.24% to 3.05%.

Pending order as on date is around Rs 4,414 crore.

EPC order book stands at Rs 2,210 crore.

EHV Cable order book stands at Rs 532 crore

Cable order book is Rs 1029 crore.

Export order book stands at Rs 643 crore.

The company is L1 for Rs 119 crore of EHV tenders.

The management expects sales to grow by 17-18 % in FY 2020.

The company has taken various brand building exercise which will benefit it going forward.

Sales from dealers stood at 34% of sales.

The company is undergoing new Green Frield project in Chinchpada in Silvasa for Rs 90-95 crore. It will be completely capatilised in FY 2020. In Phase I the company has spent Rs 55 crore. The production of this phase I will be streamlined by 15 August 2019. Phase II will be operational by February 2020. This expansion can give sales of Rs 300 crore on anualised basis.

In Rajasthan is undergoing capex worth Rs 14-15 crore for capacity addition of control and instrumentation cables. It expects sales of Rs 10 crore per month from this project. Production will be streamlined by August 2019.

The management continues to hold positive outlook for the balance of FY 2020 and for 2021 as well.

In February 2019 the company received Rs 450 crore EPC order from Nepal for underground cabling of Kathmandu City. This project is funded by Asian Development Bank. The payment terms of ADB is very attractive and so this projedct will have better working capital cycle.

Nepal order will give the company good mileage in the nearby region.

The company works in multiple industries/sectors which makes it insulated to slowdown. It caters to Power, Industrial, Infra, Railways, Metro Rails, Oil & Gas, Upstream, Aluminum, Refineries, Steel and Exports.

The company is working on increasing exports. It is exploring more business from Africa and Middle East.

Margin guidance is to maintain 10.5%. Margins will improve due to higher sales from high margin EHV cable sales.

Current capacity utilization is 90%.

It has Rs 745 crore of bank borrowings and Rs 250 crore as cash.