Key takeaways of the call

Executable order book of the company excluding the two AP orders stand at RS 4928 crore [Mechanical is Rs 2214 crore, Civil was about Rs 1273 crore, O&M about Rs 1100 crore and Electrical Rs 339 crore]. In addition the company is L1 for orders worth Rs 1300 crore which is likely to materialise in next 7-10 working days.

The company looks at addition of another Rs 800-900 crore of fresh orders and closing the fiscal with an executable order backlog of about Rs 6300 crore.

The international order book is about Rs 1375 crore largely made up of Bangladesh orders. Moreover the non power sector orders in the order book is about Rs 1400 crore.

Fall in sales for the quarter is largely due to lower revenue from civil business. While the revenue of erection grew by around 5% to 201.4 crore; O&M up by about 7.73% to about 162.65 crore and electrical by over 45% to RS 33.99 crore, the segment revenue of civil was Rs 147.31 crore, a sharp fall from about Rs 249 crore in the corresponding previous period. For 9mFY20, the revenue of erection was Rs 559.83 crore; civil Rs 428.58 crore; O&M Rs 474.07 crore and electrical Rs 104.77 crore.

The Ramanpet Canal work in Telangana, the company registered a revenue of just Rs 34 crore as against planned/expected Rs 100 crore on account of Right of Way issues. Similarly there was a shortfall of Rs 54 crore in Sadalpur Railway electrification project in Rajasthan from the planned/expected on account of delay in getting engineering clearance. Further the corresponding previous period had the contribution from execution of one- short term project which got completed in Q1FY20. This dip in revenue from planned/expected revenue for the quarter has impacted the overall revenue for the quarter.

On civil side, the execution of Ramanpet Canal work is back on track with billing improved to Rs 12-13 crore a month from about Rs 4-5 crore a month earlier. Expect the billing to reach Rs 20 crore in March 2020. The execution of Rs 284 crore Bhusaval project has also commenced and going as per plan/schedule. Of the Rs 860 crore Bangladesh order about 60% is civil work and there also the execution commenced. So Q4FY20 will be better than Q3FY20 as far as civil execution is concerned.

In electrical the largest order is Sadalpur and the company's quarterly billing is about Rs 30-35 crore crore in this project and the company expects that to move up to Rs 60-65 crore from Q4FY20 onwards.

The Kaleshwaram project is also back on track now.

On O&M side the GMDC's Akrimota plant tendering/awarding is currently put on hold as the company want to rework the PPA first before going for O&M. The company is looking for an order from Vedanta for O&M and if that materialize then that will give big boost to O&M order book of the company.

As per the current order book and progress of orders on hand, the company is expecting strong execution in Q1FY21 with execution and billing to the tune of Rs 650 crore.

The company is refocussing on FGD. The company has worked with GE in this regard on one project and also given quotes for some more projects on their FGD bids. The company is also looking at opportunities from other players such as BHEL & L&T as well.

The company's targetable pie is about Rs 10-12 lakh per MW of the total FGD cost of Rs 60 lakh/MW.

NTPC is expected to award FGD package for about 21000 MW in next few months. The IPPs and SEBs are also mandated to do the FGD retrofitting so next one year will see strong traction in FGD ordering.

Of the two AP project the company has not spent any money in one project and it has spent about Rs 12 crore in another project, of which the company is likely to get back about Rs 6 crore.

Apart from maintaining the expected strong growth momentum of Q4FY20 in next year, the company looks to build an order backlog of around Rs 8000 crore by end of next fiscal to take care of future growth.