CFO J Satish addressed the call:

In Q1 2019, Erection accounted for Rs 177 crore of sales against Rs 181 crore yoy. The fall was because of fall in international business especially in Oman.

Civil accounted for 135 crore against Rs 141 crore. This is because of one project in AP which is now completed had contributed in Q1 of FY 2019.

O&M accounted for Rs 141 crore against Rs 129 crore.

Electricals accounted for Rs 37 crore of sales against Rs 10 crore. Railways accounted for a major part of this.

O&M order book now stands at around Rs 270 crore.

Bangladesh has been a positive story. The company has order backlog of Rs 500 crore there.

Nepal presents good opportunity.

The company is expanding the services footprint & leveraging technical expertise to target higher margin contracts.

Power accounted for 63% against 77% and non power accounted for 37% against 23%.

Domestic accounted for 84% of sales against 74%. International accounted for 16% of sales against 26%.

The company is working on advanced project execution methodologies.

It hopes to improve cash flow going forward. Focus is on improving the cash flow of the company by early realization of final bills & by change in revenue mix and by early closing of projects.

It will expand O&M business as a recurring revenue model. It is trying to increase its international O&M base.

International business will be transformed for O&M business with an installed base of 300 GW in Middle East with 80% of Oil/Gas fired units.

It is deliberating with international players to collaborate in order to capture the business opportunities in Flue-gas desulfurization (FGD) and DeNOx projects for thermal power plants in India.

It is focusing on Petro Chemicals, Piping & Electrical and desalination projects where the company can exploit its expertise.

NTPC is providing new opportunities, 4,000-5,000 MW per year for newly commissioned units in the form of long term annual rate contracts.

The company is exploring new opportunities in non-power infra sector on selective basis including Railway, T&D & Other Industrial Services business.

It is looking to expand its geographical reach in middle East, North Africa, West Africa, East Africa, Bangladesh. The company is seeing growing export opportunities in Middle East. The company is pursuing international opportunities of around Rs 5000 crore.

Annul investments in Oil and Gas sector is in the range of Rs 60000 crore to Rs 80000 crore. The construction scope of the business is expected to be in the range of Rs 3000 - Rs 4000 crore per year.

New management control of stressed steel assets in private sector is throwing up opportunities. Power Mech has already forayed into this segment with carrying out works for 3 MT expansion works at Nagarnar, Blast Furnace area of site structural & equipment installation Angul for JSPL.

Indian Railways is planning massive investments in the next 5 years which could be over Rs 800000 crore. This includes network decongestion, doubling of tracks, going for high speed networks and development of stations. There is also huge OHE, S&T opportunities for Railway Electrification & Signaling.

Robust order book gives strong revenue visibility for next 3 years.

Order Inflow during Q1 FY 20 (up to 30th June 2019) was Rs 748.1 crore.

Order backlog as on 30th June 2019 stood at Rs 7153.0 crore.

Order Inflow up to 3rd Aug 2019 stood at Rs 994.2 croee.

Order backlog as on 3rd Aug 2019 stood at Rs 7399.2 crore. Power accounts for 47% of this order back log while rest 53% is non power.

It is on track of achieving order inflow target of Rs 4000 crore, with a domestic component of Rs 3600 crore and international order of Rs 400 crore.

Non current asset stood at 123 days against 128 days in FY 2019 and 139 days in FY 2018. The improvement is largely due to better business mix.

Debt increased by Rs 20 crore due to increase in business.

The company is on track to achieve Rs 1000 crore order inflows in Q2. It has received Rs 250 crore order after June 2019 and expects another Rs 750 crore order to materialize in 10-15 days.

For one order of Sarva Siksha Abhiyan order of Rs 512 crore only survey was done and no real work started. So this order was cancelled by the new government of Andhra Pradesh. This order has also been removed from the order book of the company.

For another order of Sarva Siksha Abhiyan of Rs 875 crore, the work is going on. The company has spent Rs 10 crore plus for this projects for materials and advances given to contractors. This project is moving on.

Another Rs 1235 crore AP irrigation project is on hold. The government has called the company for negotiation and should have a clear picture in another 10-20 days. No work has started for this project.

Q3 and Q4 will see more traction.

Q2 will be better than Q1. Q3 will be better than Q1 and Q2. Q4 will be best.

The company is seeing delay in international orders.

Material handling and O&M package are major components of non power business.