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Power Mech Projects hosted a
conference call on Feb 8, 2023. In the conference call the company was
represented by S Kodandaramaiah, Director Business Development and Jami Satish, CFO.
Key takeaways of the call
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Revenue Breakup (Figures in Rs crore)
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2212 (3)
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2112 (3)
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Var. (%)
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2212 (9)
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2112 (9)
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Var. (%)
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Erection
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144
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127
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13.4
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457
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370
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23.5
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Civil
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492
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268
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83.6
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1235
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775
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59.4
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O&M
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260
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226
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15.0
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682
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587
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16.2
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Electrical
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12
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25
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-52.0
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51
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76
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-32.9
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Others/Other income
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3
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4
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-25.0
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8
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15
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-46.7
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Total
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911
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650
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40.2
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2425
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1808
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34.1
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Order Backlog ( Including MDO contract of Rs. 9,294 crores executable over 25 years)
as end of Dec 2022 stood at Rs 24201 crore. Order inflow in Q3FY23 was about Rs
1531 crore. Order intake for 9mFY23 was
about Rs 8479 crore. And the company is L1 for orders worth Rs 970 crore. So confident of achieving order inflow of Rs
9500-10000 crore for FY23.
Execution of Adani Power FGD order
worth around Rs 6000 crore is on track. Adani Power is very keen on meeting the
regulatory commitment by the timeline as the tariff under PPA is now linked to
achieving the emission norms. Moreover
the FGD retrofitting projects are guided and monitored by CEA. As all four
plants falls under ‘Class C’ category of meeting emission norms there is
reasonable time available for implementation. So the company expected this order to be
completed by FY25. Work order worth Rs
1100 crore is already issued and balance ordering will be done in next 9
months. Ordering cycles will completed
in next 9 month. This order is cash
neutral. Capex for execution of this project is not more than Rs 25-30 crore
towards equipment. And apart from that there are no commitments on the part of
the company. Advances on this large FGD
order is on track and the company has already got advance of Rs 100 crore in
this order and will get another 25-50 crore soon.
MDO Project - MDO project crossed the first crucial
approval stage of ‘forest clearance
Stage I’ and the environmental clearance will be obtained in one month. So by
June 2023 the work on the project will commence . The company expects Rs 50 crore plus in FY24
and FY25 will have contribution for full year with revenue contribution from
MDO for FY25 pegged at Rs 125 crore.
Revenue guidance is on track.
Execution cycle is in control of the company.
Expect a revenue of Rs 5500 crore for FY25 and Rs 6000 crore for FY25.
While the FY24 revenue guidance includes a contribution of Rs 1200-1500 crore
from Adani Power FGD order that of FY25 revenue guidance include revenue
contribution from MDO order for full period.
Expect order inflow of Rs
9500-10000 crore for FY23. Target an order intake of about Rs 7500-8000 crore
for FY24 and Rs 8000 crore for FY25. The company pursue projects worth Rs 32-35000
crore and with a hit rate of 25% the company is confident of an order intake of
about Rs 7500-8000 crore for FY24.
In domestic market the FGD
opportunity is there for 80000 MW for which the orders are yet to be placed.
The company looks bagging of atleast 7000-8000 MW of orders out of that. The
cost of FGD project per MW vary depending
on the packages/tender i.e. EPC or in
separate packages such as Civil,
Mechanical separately.
Water order backlog currently stands at about Rs 2850-3000
crore. Post DPR the project cost per village is going up atleast by 25% from earlier estimate of Rs 1crore per village. So the order backlog of water will get
revised by end of current fiscal.
Infra mining, minerals and
material handling and railways there are substantial number of opportunities.
The company is confident of converting the FY24 opening order book to
revenue to the extent of 42-43% during
FY24. Excluding the MDO order and large FGD order
from Adani Power, the order book is roughly about Rs 8900 crore.
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