The company held its conference call on 14^th Aug 2015 which was addressed by Mr. Prayasvin Patel CMD and Mr. Rajat Jain CFO

Key Highlights

Company bagged orders worth Rs 112 crore in Sep'15 quarter in Gears division domestically as compared to Rs 107 crore of orders in Sep'14 quarter, and total order book position as on Sep'15 stood at Rs 258 crore as compared to Rs 275 crore in Sep'14.

The company continues to remain cautious on order intake and was very selective. Given the order backlog, outlook remains robust for execution in coming quarters.

Management continues to remain optimistic for orders and its execution in H2 FY'16. As per the management, the open cast mining would see more inflow of orders in next 9 months time frame. Upsurge will happen in order inflow in H2 FY'16.

Defense, sugar and fertilizer sector are showing good traction and good orders are expected in H2 FY'16.

Ebdita margins at consolidated level was around 13% in Sep'15 quarter largely due to improvement in international gear business and domestic gear business and increase in sales of spare parts together with tight costs control initiatives.

Elecon EPC or the MHE business sales stood at around Rs 101 crore in Sep'15 quarter with a loss of about Rs 12 crore and international gear business reported sales of Rs 74 crore for Sep'15 quarter with PAT of Rs 1 crore.

Elecon EPC business has an order book of around Rs 1000 crore and international gear business has orders of around Rs 60 crore as on Sep'15.

Overseas entity Ebidta is expected to remain around 7% going forward for rest of FY'16.

Overall, management expects around 10% growth in consolidated net sales and Ebidta margins of around 12-13% for FY'16.

Debt at consolidated level as on Sep'16 stood at around Rs 632 crore.

The company is operating at 45% of capacity for gear business and there are not much capex planned for next 12 months.

As per the management, so far not much benefit of lower steel prices was visible to the company as the company always booked the raw material on back to back basis.

Around Rs 275 crore is the retention money lying with customers for more than 1 year now. Management expects Rs 60 crore of recovery before Mar'16.