|
Technofab Engineering held a conference call on June 8, 2015. In the conference call the company was represented by Arjun Gupta, Director and Arun Kochhar, Vice President (Corporate affairs).
Key takeaways of conference call
Order intake for FY15 was about Rs 557 crore with the order book currently stand at around Rs 1400 crore. Currently bids worth over Rs 5000 crore are pending.
Despite competition is intense, the pricing scenario has improved a bit as everybody realized that cutting cost is not beneficial to everyone.
Execution cycle for orders ranges from 18-36 months with average being about 22 months.
Sales expected for FY16 will be around Rs 480-500 crore. EBITDA margin for current fiscal will be similar to that of FY15 at about 7-8%.
The company is looking forward to steady incremental improvement in business and performance in the coming one to 2 years is hopeful of a strong acceleration thereafter.
The company is now greatly focused on transmission & substation orders, railways (track electrification projects) and international orders compared to Rural Electrification orders, as it contract terms diminished its attractiveness. Further the company is now bidding for projects that are cash flow positive.
The company expects improvement in the power and industrial sectors in a year's time given successful auction of coal blocks.
Work on Liberian project remained suspended on account of Ebola epidemic till very recently. As the country now been declared Ebola free, remobilization is being done and work is expected to pick up by end of Q2FY16.
|