Key takeaways of the conference call

Order book is Rs 900 crore. Order intake during the first 4 months of the current fiscal is Rs 326 crore. L1 orders are close to 100 crore. The company expects fresh orders of Rs 750-800 crore for current fiscal.

For FY12 the company expects a revenue of Rs 390 plus crore and a PAT of Rs 32 crore. The PAT margin of the company will be around 9% but the company expects some pressure on the PAT margin for the current fiscal but hopeful of maintaining it above 8%. The topline is expected to grow over 30%.

Normally Q1 business accounts for about 10-12% of full year business.

Overseas orders account for about 30% of the total order book especially in 4 countries Ghana, Kenya, Malavi and Ethiopia. Major chunk or Large part of overseas order is in Gana which is largely a O&G order and balance are all water orders spread in Kenya and Malavi etc

The company has no long-term debt.

Average Execution period is 18 to 21 months. Public sector order takes longer time compared to private orders.

The overall business environment looks lucrative in India and Africa. The pipeline order /order under bidding is about Rs 2000 crore. The emphasis is more on water sector. The slow down in economy has no immediate impact on the business though may be seen in 16 to 18 Months from now.

The competitive scenario is quite challenging with 15-18 bidders competing for an order. Adding to this fierce competitive environment, the company's strike rate is significantly lower at 12-15%.

Average job size of the order book is around Rs 30 crore. However the scope of the work, the ticket size has increased over the period and is now around Rs 100 cr.

Since individual electro-magnetic packages are brought together under one package that resulted in increase in ticket size. With ticket size increasing the general expenses or project management expenses, will be lower auguring well for the company.

Since the company has subcontracts and back to back contracts for materials and takes very less time in finalising such deals it is not overly perturbed by the spike in commodity prices.

The company plans to extend its business into road sector in Africa. However the company is not interested to get into road construction EPC jobs in India as of now.