Key Highlights

The company held its 1^st ever investor conference call and has assured of better transparency and calls atleast on an annual basis.

Presently, the company provides Rectifier transformers, convertors, motors, panels etc. Complete end to end solution provider as far as rectifiers line of business is concerned.

It has 3 manufacturing locations. Mumbai, Nashik and Dehradun and 53 people in R&D team which it expects to reach to 100 by end of FY 20. Rs 6-8 crore of capex planned in FY 20 is for R&D for new and complex products and processes.

Main growth drivers for FY 19 include widened product portfolio offerings, launched series of product range which aided the growth. These products have advance technology and lower costs of manufacturing resulting in high efficiency for end users.

The company's domestic market is growing. Around 90% of total sales are from Indian Railways. The Indian railways electrification and modernization plan from diesel to electric is resulting in more tenders. The tender size and frequency of tenders have increased.

The company has successfully tied up with Bombardier India and has supplied to them who inturn supplied their coaches to Indian Railways. The company has now become a recognised Global supplier for Bombardier Group for meeting the rectifier requirements of the group worldwide.

Working aggressively in exports. Company regained lot of customers which were lost in the past. Majority of them are industrial customers in Austria, Ukraine, Russia and Turkey. These customers are now ready to work exclusively with the company. The company is charging premium compared to the competitors.

Also working on new export markets like Brazil and US for higher exports. Multiple RFQs have been placed and aim to convert them into orders.

The company is also working on Railway supplies to overseas markets. So far only to Indian railways and Srilankan Railways. One such product for exports which R&D team has developed is Universal battery charger which can be used for locomotives, metro rail, industrial applications, mono rail etc.

Rs 350 crore of order book as on April 19. 90% of order book is from Indian railways, 2% from exports and rest from other industries.

The company is adequately funded as far as orders are concerned. But company would need additional bank guarantee funding for Indian railway orders.

Due to elections, while bidding of orders from Indian Railways is done, tendering out will start only after forming of stable government.

Expects more than 150 bps improvements in operating margins in FY 20 due to higher execution and better product mix and higher exports. Exports have superior margins compared to domestic orders.

Rs 7-8 crore of debt for capital investments for FY 20. Rate of interest is at around 10.75%.

Expect the strong momentum to continue in FY 20 as well.