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Power Mech Projects hosted a conference call on Nov 18, 2019. In the conference call the company was represented by S. Kodandaramaiah, Director (Business Development) and Jami Satish, CFO.
Key takeaways of the call
Order backlog as on 30th Sep 2019 Rs 7213.0 crore with order inflow in H1FY20 stand at Rs 1340.2 crore. Including the orders received so far in Q3FY20 (upto Nov 17 2019) the order backlog as end of Nov 17, 2019 stood at Rs 7424 crore [power 49%; non power 51%]. Similarly of the YTD (upto Nov 17, 2019) order inflow of Rs 1551.2 crore about 82% is power orders and 18% is non power.
The YTD order backlog includes orders worth Rs 2112 crore from Government of Andhra Pradesh. Excluding AP orders the order book will be Rs 5312 crore.
International OB as on March 31, 2019 was Rs 1149 crore and as of Nov 17, 2019 it was about Rs 1400 crore and that is largely due to Bangla orders bagged in Q2&Q3.
| Rev Mix |
1909 (3) |
1809 (3) |
Var. (%) |
1909 (6) |
1809 (6) |
Var. (%) |
1903 (12) |
| Erection |
182 |
180 |
1 |
358 |
356 |
1 |
744 |
| Civil |
146 |
208 |
-30 |
281 |
350 |
-20 |
843 |
| O&M |
170 |
139 |
22 |
311 |
268 |
16 |
566 |
| Electrical |
36 |
11 |
227 |
71 |
21 |
238 |
104 |
Figures in crore
The company expects flat or slight fall in revenue in case of Civil works for FY20. The company having clocked erection work revenue of about Rs 360 crore in H1FY20 is expected to end the current fiscal with a revenue anywhere between Rs 800-900 crore and this will be lower than its initial target of Rs 970 crore for the current fiscal. Lowering of guidance in case of erection is largely as the orders from Bangladesh(Maitree project), Saudi and Oman got delayed than initially expected. The company expects Rs 600 crore plus and Rs 240-250 crore in revenue for FY20 from O&M and Electricals.
The company however will clock early double digit growth in revenue for FY20 if there is an improvement in Telengana project. The company has targeted Rs 160-180 crore of revenue from Telengana project but that has slowed down due to payment issues.
The company expects to close current fiscal with an order backlog (excluding AP orders) of Rs 6500 crore. The company has identified opportunities worth Rs 11000 crore (bided or negotiated, L1 etc.) and out of that it expects to bag atleast Rs 2500 crore worth of orders.
Jump in trade receivables is largely due to Telengana project if that got collected it will reduce other wise it will likely to stay at this level.
Retention money is as of Sep 2019 was Rs 312 crore almost stable from Rs 316 crore as end of March 2019.
Receivable in AP orders is not much, the company has incurred an expense of Rs 10 crore on one project and if netted of inventory it will be about Rs 5 crore. That it has to recover or has to write-off.
The company now looks for larger ticket size orders in JV.
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