Key takeaways of the call

Consolidated order inflow in Q1FY22 was Rs 4128 crore and the company has received orders worth RS 1396 crore in Q2FY22 till date thus making YTD order intake for the fiscal being Rs5524 crores. YTD order intake is majorly from urban infra & water with a share of 60%, T&D 9%, B&F 24% and railways 7%.

Consolidated Order Book as end of Jun 2021 stood at Rs29313 crores of which T&D 27%, Urban & Water 24%; B&F 30%; Railways 12% and O&G 7%. Further of the order book the share of domestic orders were 68% and international is about 32%. The company is L1 for orders worth Rs 5050 Crore (KPTL RS 2550 crore, JMC Rs 2500 crore).

Standalone YTDFY22 order inflows (Including Linjemontage & Fasttel)at Rs865 Crores largely driven from orders in T&D (56% of Order inflow) and Railways business (44%). The standalone order Book as on Jun 30, 2021 was at Rs13,397 crore [T&D 59%; Railways 26%; O&G 15% ]and the L1 order book was %about Rs 2550 crore. Of the order book share of Domestic was 51% and international 49%.

Consolidated order inflow for current fiscal is expected at Rs 16000 crore. KPTL order inflow is expected at Rs 9000 crore of which TL about Rs 5000 crore; Railways Rs 2000 crore and Pipelines Rs 2000 crore. Of the TL order inflow target of Rs 5000 crore significant portion to come from TL International (TLI) which target USD 400 million of order inflow.

TL Domestic (TLD) – About 3-4 large HVDC line projects are to come up in next 6-9 months. In TBCB front about 12 projects are worth about Rs 8000-10000 crore of project cost is up for bid over next 3-4 months. For TBCB project the company will bid with large developers as EPC partner. Lot of opportunities coming from southern, eastern and north eastern states. So Rs 20000 crore bids every year is not a challenge as far as TLD business. In addition the opportunities in neighbouring countries are added to TLD.

The company has bagged order worth Rs 500 crore in YTDFY22 from Railways vertical and it is L1 for another Rs 500 crore. Expect to bag atleast one railway order in next 8 months.

Pipeline of order for KPTL to bid currently stands at Rs 40000-45000 crore. The company see tenders worth RS 10000 crore awarded in next 6 months in case of Domestic Transmission Line (TLD) business.

TLI order prospects will increase from October 2021 as the company is currently restrained from bidding for World Bank funded projects.

Confident of 15% plus growth for International TLI business.

Revenue of Linjemontage (Sweden) of Rs.312 Crore and Fasttel (Brazil) of Rs95 Crore in Q1FY22

Linjemontageto focus on Nordic Market and 15-18% minimum growth is expected for it.

Currently Fasttel is doing an EBITDA margin of about 4%. On current order book they will be do a margin of 4-5%. The company is positive on Brazil/LatAm market. The current focus is to integrate them and bring out synergy benefits.

Standalone net debt as end Q1FY22 was Rs 1222 crore (with Long Term debt being Rs 225 crore, which was down by Rs 51 crore in Q1FY22 on QoQ basis and Rs 205 crore on YoY basis). The company will have negligible debt by fiscal end with proceeds from monetisation of Kohima project as well as sales out of Indore will be used to retire debt.

Kohima-Mariani Transmission (KMTL) - Definitive agreement signed with CLP India. Major approvals received. We are expecting the deal closure in Q2FY22. Hope to get proceeds received in Q2FY22 itself.

Promoter pledge continue to come down and stands at around 45% and the pledge has to reduce to 40% by Dec 2021.

Including Subham, as of now or near future the company do not have any capital commitment.

Higher otherexpenses is largely due to freight cost on International delivery of overseas projects. At current fright rates the company estimated a hit of USD 6 million and of which about USD 3 million has come in Q1FY22.

CTC Losses on commodity prices of RS 140 crore for taken in Q4FY21 as commodity prices on rise there is not much of reversal in Q1FY22.

Rise in commodity prices, higher logistics cost and supply chain issues continue to pose near term challenges.

For consolidated entity, the company is confident of 15% revenue growth and double digit EBITDA margin in FY22.