Key takeaways of the call

Consolidated order book as end of Jun 30, 2022 stood  at Rs 36880 crore (up 13%QoQ). Secured consolidated orders of Rs 7,952 Crores in Q1FY23. Additionally it was L1 of around Rs 7,000 Crores (Rs 4,200 Crores in KPTL and Rs 2,800 Crores in JMC).

Standalone order book of KPTL as end of Jun 30, 2022 stood at Rs 17,570 crores. Order book of JMC as end of Jun 30, 2022 stood  at Rs 19,448 crores. 

The company expects consolidated order intake of over Rs. 21,000 crore (up over 15% y-o-y) for FY23, OI will be driven by opportunities across segments such as T&D, B&F, oil and gas, water, and civil infrastructure. Both KPTL and JMC are expected to have equal contribution in order inflows.

Expect 15% growth in consolidated revenue for FY23. Also expect OPM at 9% and PBT at 4.5-5% in FY23 for consolidated entity. Standalone KPTL revenue would grow at 10-15% in FY2023.

Expects the margin guidance to be achievable as freight cost and commodity prices are coming down. Further about 75% of standalone KPTL order backlog is fixed price contracts. So execution of order which were booked factoring higher commodity prices would lead to better margin.

The company would reduce its group debt by another Rs. 300 crore-400 crore in FY2023.

The company is focusing on enhancing its capability to bid for large-size and complex projects in its core EPC business.

LMG (Sweden) reported revenue of Rs. 266 crore in Q1FY2023 and had an order book of Rs. 1,178 crore at Q1FY23-end. The company acquired balance stake of 15% in LMG during the quarter.

Fasttel (Brazil) reported revenue of Rs. 123 crore in Q1FY2023 and had an order book of Rs. 934 crore at Q1FY2023-end.

Growth in core EPC business and strengthening of international business would help the company achieve its revenue guidance. The company has successfully scaled up JMC's international presence by securing new international projects. The company is focusing on accelerating growth in core EPC business by improving its execution capabilities and strengthening balance sheet through debt reduction and efficient working capital management. The company is gaining traction in metros and data centre projects, which bodes well for its future growth. The merger of KPTL and JMC would be completed by Q4FY2023 and would increase geographical reach and improve capability to bid for large projects particularly in the non- T&D segment.