Kalpataru Power (KPTL) hosted a conference call on Nov 1, 2021. In the conference call the company was represented by Manish Mohnot, MD & CEO of the company.

Key takeaways of the call

Standalone revenue guidance for FY22 was revised down to 5-10% growth down from earlier guided 10-15%. The EBITDA margin for FY22 will be in the band of 9-10%.  However on consolidated basis the company expect a revenue growth of 15% and EBIDA margin of 9-10% for FY22.

KPTL order book at Rs.12,397 crores as on 30th Sep 2021; L1 of around Rs.1,800 crores.

Received new orders of Rs.1,137 crores in Sep-21 and Oct-21; Total orders received till date in FY22 is Rs.2,001 crores

The company is confident of booking orders worth Rs 7000-8000 crore in FY22 and this is lower than the earlier OI guidance of about Rs 9000 crore given earlier. However the company is confident of booking orders worth RS 18000-20000 crore at consolidated level compared to 15000 crore guided earlier.

Embargo by World Bank on bidding for projects funded by it ended on Oct 6, 2021 and this gives boost for order booking for the company.

The consolidated entity will bid for orders worth Rs 40000-50000 crore in Q3FY22 itself.

Promoters have steadily reducing the pledge of their stake. As end of Sep 30, 2021 the promoter stake pledged stood at 45.3% down from 45.91% and 50.8% of promoter stake pledged as end of Jun 30, 2021 and March 31, 2021 respectively. The promoters are committee to bring it to 40% by end of Dec 2021. They will bring it further to either 30% or 35% by March 2022.

Likely to close FY22 with near zero debt. 

Exceptional item was Rs 45 crore for provision on impairment of investment in Indore real estate project (took ~8% price cut to accelerate sales velocity; no further impairment is expected).

Consolidated Order Book at Rs.31,099 crores as on 30th Sep 2021; L1 of Rs.4,600 crores. Consolidated Order Inflows of Rs.9,823 crores till date in FY22 driven by T&D, B&F, Urban Infra and Water business.