Companies report strong prospects from Railways Business: Extracts from commentary about Railways Business.

KEC International

Considering strong order book the railway business of the company is expected to close current fiscal with a revenues of about Rs 1500-1600 crore having clocked a revenues of about Rs 734 crore in H1FY19. The company has linked up with various vendors in railway business. With ramp up in railway business the vendor financing have also gone up. But backward integration by the company in Railways has resulted in improved profitability as well as reduction in payable days. Focus on streamlining railway supply chain, vendor base and credit terms.

Cummins Ltd

Within industrial construction sales stood at Rs 100 crore, rail Rs 100 and others form remaining sales. Railways have grown significantly and strong traction exists. Government efforts on infra sector is also helping the overall growth

Kalpataru Power Transmission Ltd

For the Sep 18 quarter, T&D revenues stood around Rs 1100 crore, Oil and gas and Railway together around Rs 450 crore. Margins in railways around 9-10%. Strong orders coming from Pipeline and Railways for next 2-3 years. Strong order inflows from Railways and International T&D in Sep 18 quarter.

SKF Ltd

Within industrials, railways account for around 7% of total sales. Strong traction seen from passenger wagon side, while the demand from freight side bearings will pick up from now.

Escorts

New products launched in Railways. Order book is more than Rs 400 crore will be executed.25% growth in Railways for FY 19 with margins of 18-20%.

lrcon International - Expect revenue of about Rs 4600 crore in FY19

Stand-alone executable order book of the company as end of Sep 30, 2018 was more than Rs 27000 crore up from about Rs 22400 crore as end of March 31, 2018. The executable order book consists of only projects where work has already commenced and if the order waiting for clearance and approvals are included the order book will be approximately over Rs 35000 crore. Since infrastructure projects in sectors like railways take 1-1.5 years to complete investigation/surveys and clearances etc, the company includes only the orders for which work commenced in the order book.

Rites India Ltd

Performance of first half is not representative of full year as typically 60% of the revenue of the company will accrue in second half. For FY19 the company is confident of maintaining/improving the FY18 EBITDA margin levels. The EBITDA margin for FY18 was 9.86% and for H2FY18 was 14.51%.

Consultancy business has contributed about 67% of the operating turnover and income from the consultancy has increased by 83% to Rs 292 crore in Q2 FY19 against the corresponding last quarter revenue of Rs 160 crore. Company's standalone Order Book stands at Rs 6183 crore as of 30.09.2018 which is expected to be executed in the next 1 to 3 years. This order book also includes export order book of Rs 1284 crore as on 30.09.2018. The present export order book is likely to be executed in 2 to 2.5 years time. As per delivery schedule Company will start exporting in the second half of FY19.