Power Mech Projects hosted a conference call on May 23, 2022. In the conference call the company was represented by S Kodandaramaiah, Director Business Development; Rohit, VP Business Development and J Satish, CFO.

Key takeaways of the conference call

Order book excluding MOD orders as end of Mar 31, 2022 stood at Rs 8865 crore.

Expects Order Inflow of Rs 6000 crore for FY23 and look to exit current fiscal with an order backlog (excluding MOD order) of Rs 11000 crore. It also expects a revenue of Rs 3600 for FY23.

Looking at opportunities to the tune of Rs 18000 crore.

The company expect the margin to be 12-13% for FY23.

Receivables from BHEL stands at Rs 130-140 crore and that has come down by 10 days to about 80-90 days.

About 62-65% of the order book have price escalation clause.

Capex for FY23 planned is about Rs 55 crore.

MDO billing of revenue will commence from FY24. The annual revenue from MOD has now revised to about Rs 600 crore due to revision in per tonne cost for escalation of diesel and other costs.

FC in absolute number and as % of sales is expected to come down going forward.

Domestic order outlook is positive due to NIP and Ghatisakthi programmes but it is wait and watch in case of international orders.

Minerals and metals there are lot of opportunities coming up and the company with experience in JSPL and JSW looking for orders in this sector.

The impact of commodity cost to moderate with execution of new orders that factors in higher input price. Further the royalty paid to jv partners for building PQ/credentials will cease this fiscal as the company has built in-house credentials. So expect the margin improvement to happen from H2FY23.

The water projects involves 10 years O&M part from the date of completion of the project.

International order backlog of the company is down 35% to Rs 635 crore.