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Kalpataru Projects International hosted
a conference call on May 9, 2024. In the conference call the company was
represented by Manish Mohnot, MD & CEO.
Key takeaways of the call
Consolidated Order Book as end of
March 31, 20234 stood at Rs 58,415 crore[T&D 35%; B&F 19%; water 18%;
O&G 16%; Railways 7% and Urban Infra 5%]. Order inflow in FY24 was record high at Rs 30022 crore (up 19%). The
company is additionally L1 for orders worth Rs 5000 crore plus.
Received new orders of Rs 849
crore till date in FY25. Expect healthy
order inflow in current fiscal (but will give OI guidance on the Q1FY25
conference call once the government capex is finalized).
Strong order book and diversified
business mix gives confidence to sustain growth momentum in FY25 and beyond.
Expect a growth of 20%+ for
standalone revenue for FY25. Standalone PBT margin for FY24 was 4.6% (against
guidance of 4.5-5%) and EBITDA margin was 8.1%.
The company expects about 25-50 bps expansion in PBT margin. Expect finance cost to be about 2% of revenue
for core EPC business.
Expects a revenue growth of 25%
for FY25 in case of LMG Sweden with EBITDA margin of 5-6%.
T&D business: T&D revenue
growth of 50% Q4FY24 and 30% FY24 is led by robust execution & healthy
order book. Revenue of LMG (Sweden) was Rs 1028 crore for
FY24 and that of Fasttel (Brazil) was RS 701 crore. LMG is strengthening its presence with addition of new clients and
improved capabilities in substation business.
T&D business: T&D order
book as end of March 31, 2024 was Rs 20678 crore and additionally in has Rs
2000 crore worth of orders in L1 book. In L1 orders are primarily domestic
orders. India T&D order inflows was up by 47% YoY to Rs 4344 Cr; Additional
L1 of Rs 1350 crore. Order book of LMG Sweden was Rs 2062 crore
and that of Fasttel (Brazil) was Rs 1479 crore as end of Mar 2024.
T&D business: With rise in
power demand, increased renewable capacity addition and newer thermal capacity
planned the outlook for domestic T&D is strong. Sees opportunity to the tune of Rs 50000
crore worth of projects tendered/awarded over next 2-3 years in domestic
T&D space. International T&D
outlook: Significant uptick in T&D capex in Latin America, Europe, MENA and
Africa; Tender visibility of over US$3-4 billion in 18- 24 months. So the
T&D business of the company is to be robust and achieve strong growth.
T&D business: Not seeing not
much of new competition for domestic T&D project ticket size of over Rs 500
crore.
Sales of B&F and Urban Infra was up 30% (to Rs 1070 crore)
and 60% (to Rs 121 crore) respectively for Q4FY24 and 16% (to Rs 4136 crore)
& 75% (to Rs 403 crore) for FY24. The revenue of water vertical was Rs 757
crore (down 1%) and RS 2622 crore (up 34%) in Q4FY24 and FY24 respectively.
The revenue of O&G was down
by 20% and 17% for Q4FY24 and FY24 respectively and that of Railways was down
30% and 14% respectively in Q4FY24 and FY24. Railways revenue growth moderated
given focus on project closure and lower ordering. Oil & Gas revenue
impacted given business activity in India however the company has made a major
breakthrough in Middle East Oil & Gas business by bagging a large project
in FY24.
Over the last 4 years the company
has incurred a capex of Rs 1700 crore in core EPC business. Expect a minimum capex of Rs 500 crore for
FY25 and of which 75% will be for equipment/resources for URbaninfra and
B&F such as tunnel boring machines etc.
Due to certain project not got completed
in Feb/Mar 2024 due to Election process moderating the growth expected for
FY24.
Consolidated PAT (Excluding
Impact of Exceptional Item) was up 125% (to Rs 169 crore) for Q4FY24 and 35%
(to Rs 510 crore) for FY24
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