Key takeaways of the call

Operations and revenue largely recovered. Some shortfall in revenue was there.

Q3FY21 order inflow was Rs 1467 crore; order backlog as end of Dec 31, 2020 was Rs 6863 crore vs 6935 crore 31 mar 2020. Of the order backlog about 78% were project orders and 22% is product orders. OF the order backlog export orders were 15%.

Standalone order backlog as end of Dec 2020 was Rs 6192 crore of which project orders were RS 5301 crore and balance is product orders. The standalone export orders were about Rs 809 crore.

Order book of Hitachi Zosen India, the JV stood at Rs 560 crore.

Enquiry level and demand trend are good.Air pollution control equipment are expected to be good.

Restored salary for all employee which was cut due to covid was restored effective Jan 1, 2021.

FGD order book pending execution currently stand at Rs 850 crore. The company expects a revenue of Rs 450 crore to come from FGD in FY22.

STO of Hitachi Zosen and Eagle Press in Q3FY21 was about Rs 27 crore and Rs 35 crore respectively. Low billing hit the profitability of Hitachi Zosen but considering the strong order the revenue of it is expected to be good.

Sugar distillery – commercial production will be 60 days post completion of the plant. The revenue in a 12 month period the revenue is expected is Rs 160-170 crore but initially it will be not that much.

Fall in other expenses was largely due to lesser subcontracting expense (other mfg. exp), lower packing and forwarding expenses, just a margin legal expense (compared to Rs 45 crore in 9mFY20 & largely accounted in H1FY20).

Margin to be sustained at a level of 7.5%.

About 50% of order backlog have escalation clause. Rest of the order backlog there is impact of steel price increase. In new orders the higher steel price was considered. Overall the impact of steel price is very minimal.

FGD order visibility: Submission of bid for lot 6 of NTPC FGD is next week, state governments has also started to come out with FGD tenders.

Eagle Press was acquired by ISGEC Canada, a SPV which has an equity funded by the company to the tune of C$ of 4.5 million and debt of C$ 10.8million. The SPV was later merged with Eagle Press and the debt gone to the book of Eagle press, which is currently servicing the debt.

Distillery order have come in.