Infrastructure Order Inflow Pulse ‐ May: Prabhudas Lilladher,

Engineering & Construction
Synopsis
Ordering activity was mainly seen in the Water and Building segments. The total
order inflow announced by various E&C players on BSE amounted to Rs53.1bn, down
by 26.8% on MoM basis. L&T announced the higher chunk of projects worth
Rs33.5bn followed by IVRCL at Rs6.5bn.

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Sectoral Insights
Roads sector was quite inactive this month. The only big order was bagged by HCC
which came from Gujarat for a six-laning of a 6km road, including a bridge over the
Narmada river worth Rs8bn. Total order inflow was Rs9.5bn, down from Rs63.7bn in
April 2012.
Buildings projects totalling to Rs28.6bn were awarded during the month, up from
Rs8.1bn in April 2012. Main recipient was L&T and C&C constructions. A mix of
residential, commercial and social infrastructure constituted the inflows.
Water and Irrigation projects worth Rs8.1bn were awarded mainly from Andhra
Pradesh followed by Gujarat.
Amongst the others were transmission orders to L&T and construction of metro
axillaries totalling to Rs6.9bn.
Comment
We expect the ordering activity to gather momentum in the coming months as the
Government has shown a keen interest to fast track the projects. Railways and Ports
are the two sectors where major orders can be expected in the future. However, in
the coming months, Roads will continue to dominate the scene.


Capital Goods
Synopsis
Ordering activity was mainly seen in T&D and BTG space. The total order inflow
announced by various players in our coverage universe on BSE amounted to
Rs36.4bn which was down by 2% on MoM basis. BGR Energy Systems booked the
second order from NTPC bulk tender for 660MW boilers (out of three locations).
Sectoral Insights
In February, BGR emerged as the lowest bidder in the NTPC bulk tender for supply of
11x660 MW super-critical boilers. These projects are located at Solapur, Mouda
(Maharashtra), Meja (Uttar Pradesh), Nabinagar (Bihar) and Raghunathpur (West
Bengal). It has already booked order for 2x660MW for Solapur in April (Rs18.5bn). In
May, it booked 2x660 boiler order for Meja project in Uttar Pradesh. The order is
valued at Euro 109.79m and a rupee component of Rs11.2bn (about Rs18.5bn in
total). BHEL also managed to bag BTG order worth Rs11.4bn from NTPC to set up
1x500 MW thermal power generating unit called Vindhyachal Super Thermal Power
Station (STPS) in Madhya Pradesh. It also bagged orders worth 160MW for
Combined Cycle Power Plant (CCPP) from Rajasthan Rajya Vidyut Utpadan Nigam
(RRVUNL).
In T&D space, ABB received orders from Power Grid and Alstom T&D received order
for 400 kV gas-insulated substations from Maharashtra State Electricity
Transmission.
Comment
We expect the BTG market to remain weak (apart from NTPC bulk tender award).
We expect ordering in T&D to continue to remain strong with large capex plans of
Power Grid. With increased focus of a lot of companies in the overseas market, we
expect ordering announcements from overseas markets also to pick up in the near
term.