Key Highlights

FY 18 ended on an expected line with sales being more or less flat and operating margins improved on account of lot of internal efficiencies built by the company during previous year. Domestic sales were strong on back of good orders, however some export orders could not materialise in FY 18, which will get materialized in FY 19.

The company is on track for making exports to account for around 20% of total sales by FY 20, as compared to around 7% currently. New products are well received by global customers which will aid the export growth.

The company had received around Rs 8 crore from preferential allotment in FY 18 and the balance will be received in FY 19. The funds will be used predominately to meet the increased working capital requirements given the increase in turnover that the company expects.

Working capital issues have increased given higher raw material cost, vulnerable rupee and general cautious environment.

Weak rupee is aiding exports and resulting in better realisation. Otherwise, more or less domestic and export realisation are same.

Railways account for around 50% of total sales while rest comes from steel, construction, mining, power, sugar, defence, oil & gas and other engineering sectors. Enquiries continue to remain very high from railways.

Expects strong orders from Railways before Mar 19. The company has introduced new products in Railways. The company would be doing investments in extending its reach in railways and automobiles business in FY 19.

Order book is up by around 30% on YoY basis.

Expects net sales growth of more than 20% in FY 19. However high raw material prices and higher working capital requirements can be a worry. Difficult to predict on raw material pricing at this moment.