Key highlights

The company secured fresh orders worth Rs 605 crore for 9 months ended Dec'16. Another Rs 425 crore of new orders are expected before Mar'17. Thus management expects order inflow of around Rs 1000 crore in FY'17. The company is L1 in around Rs 800 crore of orders.

Around 80% of orders are from electrical and 20% from water. Lot of more orders from water sector are expected in FY'18.

Significant improvement in gross margin and Ebidta margin is highest since Mar'13. Cost control has lead to higher operating margin. Management expects sustaining and improvement in margins particularly as the new orders have better margins.

In the business secured in past years, some of the jobs have been delayed due to availability of land and work etc like substation land in Arunachal Pradesh, RINL project in Vizag, 220 KV substations had land problem in Bhukaro and is running 6 months behind schedule. Older jobs also include 2 water projects in Rajasthan worth Rs 400 crore, which are moving slowly and the project execution should pick up from April'17. Around Rs 300 crore of work is yet to be completed in this project.

Management expects around Rs 130 crore of turnover for Mar'17 quarter and margin should be in similar line or better than Dec'16 quarter.

The company has around Rs 45 crore of cash and around Rs 111 crore of debt as on Dec'16. Some of the Rural Electrification jobs in Bihar have very stretched payment cycle and that has added to interest cost and interest burden on the company. Management expects interest cost to ease out going forward with more advances coming in and receivables will improve in next 12 months.

Earlier management expected net sales of around Rs 500 crore for FY'17 and now it expects the same in FY'18. Going forward thereafter, management aims to grow net sales by 20% and PAT margin of around 8%.