Highlights of the call:

Ion Exchange is a pioneer of water treatment in India with a legacy spanning over five decades.

Ion Exchange is recognised internationally as a premier company in water and environment management.

The company is a manufacturer of world class ion exchange resins for water and non-water speciality applications, membranes, water treatment chemicals and speciality process chemicals.

The company also designs and supplies water, process liquid, waste water treatment, water recycle plants - packaged, pre-engineered and custom-built, on turnkey, BOT and EPC basis.

It is among the largest environment solutions providers, one of very few companies worldwide with a complete range of technologies, products and services. This enables it to offer total solutions for every sector of society.

Ion Exchange has largest service network in the water treatment industry in Asia

It operates as a global MNC.

The company has global presence through overseas sales & service operations, subsidiaries and joint ventures.

In December 2016 quarter net sales fell 5% to Rs 192.12 crore. EBIDT grew 1% to Rs 16.15 crore. PAT fell 17% to Rs 6.11 crore.

For the nine months net sales grew 4% to Rs 583.42 crore. EBIDT grew 14% to Rs 47.73 crore. PAT grew 10% to Rs 19.71 crore.

Higher investment by the Government will help the engineering division.

The industrial side saw some improvement especially the small side projects. However order inflow should improve from this side going forward

If sales grow rapidly, margins can improve significantly in engineering segment.

The company has 50 patents to its credit and is instrumental in more than 1 lakh installation across the globe.

Engineering segment has seen continued sluggishness in the capital goods industry which has resulted negative growth in large EPC segment. However the medium segment continue to show good order inflow and sales.

With the budget announcement of renewed push to the infra, situation should do well.

Sri Lanka order has seen progress and execution is expected to commence in March 2017 quarter. The company has done substantial amount of ground work.

Subsidiary companies mainly are operating in the engineering segment and due to sluggish environment the performance is muted.

Chemical segment has been impacted due to demonetization.

However margins improved due to managing efficiencies and enhancement capacities.

Consumer product was muted. Third quarter is the lowest. This segment also felt impact of demonetization. Various steps taken in this segment will have positive impact on the coming quarter.

Order book stands at Rs 600 crore. This does not include Sri Lanka order. Order intake is comparable as in previous period, which is around Rs 100 crore

Traditionally Q4 is the best for the company.

Bidding pipeline is Rs 3000-3500 in various stages (including budgetary, initial and technical level). Private segment is not seeing many orders in the large segment but they are showing in small and medium segments.

Sri Lanka contract is a three year contract and sales are expected to be symmetrical in all three years.

Subsidiaries in Engineering segment are not likely to turn around in current year. But those in chemical segment should do better. Most of the subsidiaries are from the engineering segment.

The company has no intentions currently to come out with consolidated results.

NSE listing will be considered after it solves its T2T segment issues.

The company is comfortable with its debt equity ratio. And debt will be in similar levels in FY 2017.

Debt for capex will be Rs 10-15 crore for FY 2018 on standalone basis, on consolidated basis it will be slightly more.

It has spent $ 2 million in the Sri Lankan facility so far. The company cannot comment on the margins of the order.

Margins are higher in international orders.