Analyst Meet / AGM - Analyst Meet
FY 2017 to lay a strong foundation for future growth
The company held its AGM on 5th Aug 2016 and was addressed by Mr S K Nevatia CMD
Key highlights
The company has an order book position of around Rs 90 crore, which is up by 30% YoY. Further around Rs 100 crore worth of Railway orders are in pipeline which will be awarded in next 3-4 months.
Railways account for around 65% of total sales while rest comes from various sectors such as cement, steel and other industrials.
The company had invested in R&D and in new products which are approved by the Railways. The orders for these new products is expected by the end of FY'17. These orders are of high value and high margins.
After more than 2 years of lull, Railways have turned around the corner and have started ordering and investing in business. Also some orders from private players including the Metro orders where DC/AC work is required have been received by the company.
Overall management expects net sales growth of around 40% for FY'17 with strong operating margins. FY'17 will be a strong base for the future growth. Management remains very optimistic about the future prospects of the business.
The company has sufficient capacity at Dehradun plant which it expects to utilize fully in next 2-3 years. The facility has tax benefits in form of no excise and lower income tax rates.
Exports account for around 7% of total turnover. The company has started very aggressively in exports and invested in distribution and brand building business. Lot of enquiries from neighboring countries are received which soon will translate into orders. Management expects exports to be around 10% of total turnover.
June'16 quarter was an aberration as per the management and strong growth is expected going forward.
The company is open for sale of the land and building premises; however it's difficult to find buyer with a right price in the current scenario. Management expects some concrete things to happen in FY'17.
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