Arjuna Gupta, Whole Time Director addressed the call.

Highlights of the meet:

Technofab Engineering registered 19% fall in sales to Rs 88.15 crore for the quarter ended September 2016.

PBT for the quarter grew 6% to Rs 4.80 crore. PAT grew 10% to Rs 3.19 crore.

Sales for the six months stood at Rs 188.83 crore, down 6%.

PBT grew 18% to Rs 7.42 crore. PAT grew 19% to Rs 4.88 crore.

Long way to go before the company achieves 30% sales growth and 8-9% PAT margins.

The company continued to put great emphasis on securing new business from existing as well as new customers and new geographies.

The company is not worried about fall in sales because it has decent orders and hopes sales to be on track in next 3 quarters.

The company secured fresh orders worth Rs 386 crore since March 2016, which_ includes a ADB funded Rs 108 crore Water Treatment Plant for the city of Thimpu in Bhutan.

The company is confident of order intake of Rs 1000 crore in FY 2017.

Unexecuted order book stands at around Rs 1400 crore which is very encouraging.

Additionally the company is L1 in over Rs 400 crore of fresh orders.

Overall, bids worth close to Rs 5000 crore in both domestic and overseas markets are pending and the company is hopeful of getting Rs 1000 crore from it.

Overseas orders account for 21 %, domestic orders accounted for 1%. Indian PSU/government/government funded orders accounted for 78%.

The company is looking at business from nuclear sector.

Against the earlier sales target of Rs 500-550 crore, the company is now looking achieving lower end of sales which is Rs 500 crore in FY 2017.

Order book at the end of the year is likely to be 3 times its sales, which is the highest ever. Historically the highest had been 2.7x so far.

Thus the company may likely grow its sales at 20-25% in FY 2018.

Total debt is 111 crore. Cash on books is Rs 111 crore.

In FY 2018 trajectory of growth should be maintained.

The management feels that the main domestic opportunities in the next two years will be from water sectors and Industrial distribution and rural electrification sector including sub stations.

In rural electrification projects the company is earning profit margins better than expected.

The other sectors viz. the Thermal Power, Nuclear Power, Industrial, Oil & Gas had relatively low contribution.

Water sector is poised for a huge impetus on account of urban renewal and river cleaning oriented action plans.

A bounce pack in the power and industrial sectors is unlikely for another 12-18 months.

The company has continued to maintain a strong focus on geographical diversity.

Overseas, the company continues to vigorously pursue opportunities in all sectors in sub Saharan Africa and in nearby SAARC countries, with particular focus on funded projects.

Apart from Sub Saharan Africa, the other geographies of interest are in Fiji and closer home in South Asia.

Despite fall in sales during the six months, the company feels it is on growth path with improved margins which are sustainable.

All overseas projects are proceeding well.

Domestically also most projects are progressing well.

While there are no major hold ups in overseas projects, some of the projects are progressing relatively slowly due to funding limitations.

There continues to be pressure on outstanding.

Bulk of the outstanding is from the Power and Industrial Sectors where formal closure of jobs that are virtually completed are getting deferred.

Total outstanding is slightly over Rs 300 crore. About a third of it is less than 6 months and 1/3^rd is greater than 6 months.

The outstanding issue is largely due to the payment terms in some of its Electrification assignments where a significant part of payment against material supplies is linked to electrification of all villages in a given block or cluster.

The Electrical sector continued to provide reasonable opportunities, driven largely by Government funding for Power Sector restructuring and drive for providing electricity connections in rural areas particularly for BPL households.

Outstanding problem has peaked and is now expected to gradually diminish. All ongoing invoicing is getting paid on time.

The company continues to see the Water Sector as a major contributor to its business, both domestically and overseas.

The company has been looking at opportunities emerging out of the huge planned investment on modernisation of the Railways, the focus being on the Electrical side.

The management is not very confident on margin expansion on the water business. It will have to wait for some time to see that happen.

Due to demonetization interest rates should come down and should reflect in performance of FY 2018.

Decision to raising of equity will be done at the end of FY 2017.