Key takeaways of the call

Order intake was up 27%YoY to Rs 4860 crore. And the order backlog as end of March 2021 stood at Rs 6765 crore vs 6935 crore previous year. Of the order book about 80% are projects and 20% products. About 12% of the order book is export orders. Order book of Hitachi JV is about Rs 433 crore. Strong order book, supported by best-in-class capabilities, provide healthy growth visibility.

Of the order book about 52% is private sector orders and balance 48% is from government/PSUs sector. Most private sector orders are without pass through clause.

Bid book is good and moving higher compared to same period last year.

Work in factories got impacted in April 2021mainly due to acute shortage of oxygen but the situation is improved now. The pace of work in project sites got adversely impacted due to huge migration of labour and it faced delays in supplies of materials as in many states factories of vendors were shut due to lockdowns and non-availability of Oxygen. Employee productivity impacted due to working from home and COVID impacting many of them or their families. Vendors and Subcontractors are facing shortage of labour and wage increases.

Office at Delhi NCR, Pune and Chennai was closed for 6-8 weeks and re-opened in June with limited workforce.

Currently 97% of eligible workforce and contract workers were vaccinated.

Currently number of competitors for FGC order have come down compared to previous years.

EPC – Some of the sector the company has got into first time. With learnings and volume the margin will get improve. Margin should improve barring external shocks such as input price hike etc.

Ethanol – The company is not into 2G ethanol space and will book reasonable order in ethanol space with 1G technology once ethanol plant orders are finalised which is expected couple of months down the line. Currently the economies of 2G/3G is not good once the volume is there the company will get into that segment.

Over the two year the company will build up a capability to take up an order book of about Rs 10000 crore.

In EPC segment some of key orders bagged are 10000 TCD Sugar Plant, with 40 MW Power Plant and Distillery as well as Process Plant order for a 200 TPD Formaldehyde Plant.

Distillery project will be completed by July 2021.

Complete the Philippines plant and run it till the plant get right offer to monetize.

Steel price gone-up steeply 16-18% price hike in steel.