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Key takeaways of the conference call
| Revenue Mix |
|
2206 (3) |
2106 (3) |
Var. (%) |
| Erection |
152 |
137 |
10.9 |
| Civil |
376 |
284 |
32.4 |
| O&M |
196 |
173 |
13.3 |
| Electrical |
22 |
28 |
-21.4 |
| Others/Other income |
3 |
6 |
-50 |
| Total |
746 |
622 |
19.9 |
Order book (excluding MOD order of Rs 9294 crore executed over 25 years) stood at Rs 8883 crore as end of Jun 30, 2022 and at Rs 15056 crore as end of Aug 17, 2022. Order inflow in Q1FY23 was Rs 775 crore and YTD (upto Aug 17, 2022) was Rs 6948 crore. Of YTD order inflow about 97.1% is power sector orders and 2.9% is non power.
Of order backlog (Excluding MDO) as end of Jun 2022, domestic orders were about Rs 8366 crore and international orders were about RS 523 crore. Of order backlog (Excluding MDO) government orders were 50% and that of private is 50%.
Of the YTD order backlog (including MOD order) about 32.7% is from Erection, 5% is from O&M, 23.8% is civil & other works, 38.2% is mining and balance is electrical works.
PMP business division of the company has received 5 FGD orders worth about Rs 6163 crore from the Adani group during the month of Aug 2022. This order comes with 10% interest free advance and EBITDA margin of about 11%.
The company now expects an order inflow of Rs 10000 crore for FY23 as against Rs 6000 crore guided earlier at the start of current fiscal. Thus for balance nine month the company expect further order inflow of Rs 3100 crore. And against this the company is currently L1 for orders worth Rs 1500 crore.
Execution cycle going forward to improve on robust order book, stronger engineering skills and strong construction management.
For FY23 the company expect an order book to revenue conversion of Rs 3600 crore plus. If we consider contribution from FGD order book that may go up to around Rs 4000 crore plus. However based on FGD work schedule the company will come with revised revenue target in few days.
Expect to start next fiscal with an order backlog (excluding MDO order) of Rs 14000 crore. The company expects an order book to revenue conversion of about 38% for FY23-24.
The margin will improve gradually going forward.
O&M a dominant pie in overall business plan.
To support non fund based requirements of the company the promoters subject to BoD approval are to infuse funds by preferenential allotment which will be about 1.3-1.4% of the pre allotment equity base.
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