Key takeaways of the call

YTD FY21 order inflows at Rs.6,260 Crores largely driven from orders in T&D business; Q3FY21 order inflow was Rs 2869 crore. In addition the company has bagged orders worth Rs 835 crore till now in Q4FY21 and have L1 orders of around Rs 3100 crore.

Majority of L1 order will be received before March 2021.

Completed normalcy in operations attained in case of KPTL.

Construction bottlenecks gone, efficiency are coming back and about 95-99% of normalcy has returned. In case of manufacturing the bottlenecks on delivery is still there especially to neighbouring countries and expect that to improve going forward. In case of Bought-out side about 95-96% normalcy returned.

Railways biz also has huge project in Bangladesh and that taken a hit due to pandemic.

T&D registered a growth of 5% in Q3FY21. Railway has also registered similar growth. All business to register growth in Q4FY21.

Confident of slight growth for KPTL on standalone basis for FY21. Expect double digit revenue growth on standalone and consolidated basis for FY22. Margin of KPTL will be back to 10.75-11% in Q4FY21.

Even despite headwinds on account of commodity price rise the company is confident of double digit margin for next few quarters and for next fiscal.

Proceeds from sale of transmission assets to be utilized to reduce debt, capex and support future growth. Apart from net debt reduction the company may look at smaller acquisitions and leverage KPTL project execution capability to grow the acquired company as well as rewarding shareholders.

Approval to be by end of Feb as far as monetisation of assets and balance process will be completed in 4-5 weeks.

Bid pipeline – Transmission international looks promising and bidding of BOOT assets started in domestic market. Railway side lot of tenders for electrification and doubling is under tender pipeline. So growth is not an issue.

About 80% of the Rs 3000 crore LI order book is T&D and especially T&D domestic.

Some of geographies being local is the best way to tap the full potential of it. Apart from Brazil there are few more geographies like that. Brazil is the 3rd largest market for T&D.

Doubling the revenue is not a great issue in next 3 years for kptl.

Capex will not be more than RS 250 crore (including Rs 125 crore for JMC) together for next fiscal.

Received proceeds on sale of Alipurduar Transmission Ltd. ATL) in Q3FY21.

Exceptional items for Q3FY21 includes gain on sale of Alipurduar Transmission Ltd. (ATL) and Jhajjar KT Transco Private Ltd. (JKTPL). In ATL, the company has recognized the entire gain (net of expenses) of Rs147 crore, representing gain on transfer of 49% stake and fair value gain on the balance 51% stake. In JKTPL, the company has completed the sale of its entire stake and recognized a gain (net of expenses) of Rs7 crore.

Achieved full commissioning of Kohima-Mariani Transmission Ltd. (KMTL); Awaiting approvals for transfer/ sale from relevant authorities; Expecting deal closure in Q4FY21 / Q1FY22. Out of total project cost of Rs 1300 crore the investment of the company is about Rs 225 crore. SPV debt stands at Rs800 crore and are not part of consolidated debt of KPTL. But the sales proceed of Rs 600 crore will comes to KPTL books.

Subham Logistics - Significant improvement in SSL operations with revenue growth of 17% YoY, EBITDA margin of 35% and PAT of Rs.9 Crore for 9MFY21. Q1FY22 the company will get some insights on disinvestment of SSL. The investment by the company in SSL is about Rs 300 crore.

Linjemontage revenue growth of over 100% in 9MFY21 and Order Book of Rs1097 crore. Linjemontage sales was Rs 321 crore in Q3FY21 with EBITDA margin stand at 5-6%.

The acquisition of Fasttel in Brazil is in line with the strategy to strengthen its core EPC business and becoming local in few geographies. Fasttel helps it to make its entry into the high growth Brazilian power transmission and distribution market.

Indore Realty project - The company will get back its investment in Indore realty project. Carpet area built is 24000 sq. mtr. Of the total 129 residential units the company has sold about 46 units and the balance cost to finish is about Rs 45 crore.