Key takeaways of the call

Received total orders of Rs 8443 crores in FY20-21 of which 74% is T&D, 13% each by Oil & Gas and railways. Of the order inflow for the fiscal about 51% is international and 49% is domestic.

Standalone order book of KPTL was at Rs13,980 crores (59% T&D, 17% railways, 24% O&G) as on 31st March 2021 with L1 orders of Rs 1300 crores. Consolidated Order Book as on 31st March 2021 stood at of Rs 27900 crores; L1 of Rs.2,300 crores.

Expects a revenue growth of 10-15% for FY22 on standalone basis. The company expects a consolidated sales growth of about 15% for FY22.

Guidance on order inflow is difficult at the moment, given surge in covid cases in the country.

The company is confident of 10-15% growth for the fiscal with visibility in sector, its reach and execution capability.

Container availability and restriction on air travel (ban of travel from India by certain countries) will be a major challenge as it hit the despatches and manpower movement. Unlike last year there was exodus of labour from project sites, this year the labour have not migrated. Thus most of the project sites in India have 90% labour available at site. But work/productivity is disturbed due to local restrictions/lockdown that hampered the movement of materials equipments, labour etc.

Even at current RM prices double digit margin is very much possible.

Of the KPTL order book about 60% is fixed price contract and 40% is with PVC

Oil & Gas project margin has reached double digit of about 10-12% and the company is expected to sustain that this year as well. Currently the company is not bidding for lot of international TL orders and expected to resume bidding from Oct 2021 onwards.

The PBT margin of Railways was at about 5-6% due to lower sales and the company is not expecting that to improve this fiscal as the company has some legacy orders to complete this fiscal.

Tax rate higher than current reduced corporate tax rate of 25.2% is largely due to international projects. Some countries the tax rate is now higher than the India corporate tax and the company has to account for that. The tax rate of the company will normally be 2-3% higher than India tax rate.

The company has pre-qualified for O&G orders in about 10-11 countries. Similarly the railway international orders are also growing big way.

Net debt at Rs2,304 crores as on 31st March 2021 compared to Rs.3,458 Crores as on 31st March 2020. With monetisation of development and non core assets the company expect to reduce the debt level to negligible level by end of current fiscal.

In FY21 the company has ventured into5 new countries and established presence in Brazil with acquisition of fasttel.

Kohima-Mariani Transmission - Definitive agreement signed with CLP India. Major approvals received. Expecting the deal closure by Q1FY22/June 2021 end.

Fasttel opening order book was about Rs 670 crore.

Registered 84% revenue growth in linge montage.

Sold 35% of units in Indore realestate project.

Promoters are on track to achieve the target 40% shareholding pledge by Dec 2021 end.