Extremely Bullish
769 1 target and next target will be provided after next quarterly result stock is doing great on fundamentals....
During the quarter, the revenue growth was driven by good performance in transmission &
distribution (T&D) and civil segment across domestic as well as international regions.
• The performance could have been better but was slightly affected due to certain supply chain
issues.
• EBITDA for the quarter was up by 54% YoY while EBITDA margins were up by 160 bps YoY.
• The interest cost stood at 3.3% of revenue for Q3 FY24 as compared to 3.4% during Q3 FY24. On a
QoQ basis, it reduced by ~70 bps.
• As on 31st December 2023, the company’s net debt level was ₹6,045 crore (including acceptances). It
decreased by ~₹300 crore sequentially.
• The net working capital stands at 129 days as on 31st December 2023, a reduction of 4 days on a
QoQ basis. The company’s aspiration is to take it down to 100 days.
BUSINESS HIGHLIGHTS
• The order intake as of 9M FY24, stood at ~₹12,850 crore with T&D and civil businesses being the
major contributors. Of this T&D was 61%, civil was 20%, cables 10%, railways was 7%, oil & gas 1%
and the remaining with others. Further, domestic was 61% and international was 39%.
• The total order book as on 31st December 2023 grew by ~14% to ₹30,161 crore. Of this, T&D was
49%, civil was 33%, railways 12%, cables 2%, oil & gas 2% and the balance from others (primarily
include solar). Further, domestic: international mix was 69:31.
• The power supply segment has L1 (lowest tender/bid) order of more than ₹2,500 crore across six
continents. In international market they have got significant orders from UAE and America for power
infrastructure.
• They have more than ~₹38,000 crore of order book including L1 order as on date. The L1 position
was over ₹8,000 crore. Of the total order book, Middle East orders were worth ₹6,500 crore.
SEGMENT WISE PERFORMANCE
TRANSMISSION AND DISTRIBUTION (T&D)
• In the T&D segment, the company achieved a revenue of ₹2,723 crore in Q3 FY24, a growth of 22%
on a YoY basis. The performance was aided by strong project visibility both in India and international
regions, especially in Middle East. SAE (subsidiary) continued to deliver turnaround performance
with positive profit.
• In 9M FY24, the order intake was over ₹7,500 crore across various regions.
• They have strong order book & L1 of more than ₹22,000 crore currently. The order book including L1
orders for SAE was ₹1,300 crore.
• During the quarter, it commenced the process of setting up aluminium conductor manufacturing
plants with capex of ~₹60 crore. It would be set up by next few quarters.
RAILWAYS
• In Q3 FY24, the revenue from railways stood at ₹653 crore, a de-growth of 28% on a YoY basis.
• During 9M FY24, the order intake was ~₹850 crore and remained subdued owing to increase in
competition from tier II/ III EPC (engineering, procurement and construction) contractors and
clientele changing from PSU (public sector unit) to zonal railways.
• The company continued to pursue international opportunities.
CIVIL
• During the quarter, this segment saw revenue at ₹1,100 crore, growing by 30% on a YoY basis, aided
by strong execution across segments.
• This segment continues to gain traction in terms of order inflow and secured orders of over ₹2,500
crore as of 9M FY24 mainly towards industrial, commercial & residential buildings, public spaces and
data centres with breakthrough orders from hospital and FMCG (fast moving and consumer goods)
segments.
• They had won a project for a high-rise building from a real estate developer taking the total highrise building projects to 50 till date.
OIL AND GAS
• This segment saw revenue at ₹182 crore in Q3 FY24 with 15% growth on a YoY basis.
• They secured another order for composite station work.
• Orders in pipeline for L1 amount to ₹900 crore, from both government and private players.
• They have been exploring international opportunities and have been approved by a leading global
energy company based in the Middle East.
CABLES
• The cables segment reported revenue of ₹383 crore, during the quarter, up by 4% YoY. Margin
contribution continued to be healthy on back of improved product mix.
• It developed unique products such as EV charging cable and green cable.
SOLAR
• Execution is in progress for its largest solar project of 600 MW (megawatt) in Karnataka.
• It continued to bid actively for select opportunities in line with the sustained commitment of the
government to promote renewable energy.
• This segment would soon be a growth driver moving ahead.
UPDATES
• The tender pipeline along with tender under evaluation stood at ₹1,30,000 crore.
FUTURE OUTLOOK
• The management reiterated revenue guidance of ₹20,000 crore in FY24 and a robust growth on
account of a strong order book as well as tender pipeline.
• They anticipate that the EBITDA margins will continue to see improvement in the upcoming quarters
to reach ~7% in FY24.
• On the domestic front, in the T&D business, they have visibility of ₹25,000 crore worth of projects
that they anticipate to win over the next few quarters.
• In terms of the civil segment, the management believes it to be a medium-term growth driver
backed by a healthy order book pipeline.
• They would scale up the oil & gas segment in the coming years.
• It expects some of the collections from Afghanistan to come in by Q4 FY24 and the balance in the
upcoming quarters.
• The management anticipates the interest cost as a percentage of revenue to reduce in the coming
times.
During the quarter, the revenue growth was driven by good performance in transmission &
distribution (T&D) and civil segment across domestic as well as international regions.
• The performance could have been better but was slightly affected due to certain supply chain
issues.
• EBITDA for the quarter was up by 54% YoY while EBITDA margins were up by 160 bps YoY.
• The interest cost stood at 3.3% of revenue for Q3 FY24 as compared to 3.4% during Q3 FY24. On a
QoQ basis, it reduced by ~70 bps.
• As on 31st December 2023, the company’s net debt level was ₹6,045 crore (including acceptances). It
decreased by ~₹300 crore sequentially.
• The net working capital stands at 129 days as on 31st December 2023, a reduction of 4 days on a
QoQ basis. The company’s aspiration is to take it down to 100 days.
BUSINESS HIGHLIGHTS
• The order intake as of 9M FY24, stood at ~₹12,850 crore with T&D and civil businesses being the
major contributors. Of this T&D was 61%, civil was 20%, cables 10%, railways was 7%, oil & gas 1%
and the remaining with others. Further, domestic was 61% and international was 39%.
• The total order book as on 31st December 2023 grew by ~14% to ₹30,161 crore. Of this, T&D was
49%, civil was 33%, railways 12%, cables 2%, oil & gas 2% and the balance from others (primarily
include solar). Further, domestic: international mix was 69:31.
• The power supply segment has L1 (lowest tender/bid) order of more than ₹2,500 crore across six
continents. In international market they have got significant orders from UAE and America for power
infrastructure.
• They have more than ~₹38,000 crore of order book including L1 order as on date. The L1 position
was over ₹8,000 crore. Of the total order book, Middle East orders were worth ₹6,500 crore.
SEGMENT WISE PERFORMANCE
TRANSMISSION AND DISTRIBUTION (T&D)
• In the T&D segment, the company achieved a revenue of ₹2,723 crore in Q3 FY24, a growth of 22%
on a YoY basis. The performance was aided by strong project visibility both in India and international
regions, especially in Middle East. SAE (subsidiary) continued to deliver turnaround performance
with positive profit.
• In 9M FY24, the order intake was over ₹7,500 crore across various regions.
• They have strong order book & L1 of more than ₹22,000 crore currently. The order book including L1
orders for SAE was ₹1,300 crore.
• During the quarter, it commenced the process of setting up aluminium conductor manufacturing
plants with capex of ~₹60 crore. It would be set up by next few quarters.
RAILWAYS
• In Q3 FY24, the revenue from railways stood at ₹653 crore, a de-growth of 28% on a YoY basis.
• During 9M FY24, the order intake was ~₹850 crore and remained subdued owing to increase in
competition from tier II/ III EPC (engineering, procurement and construction) contractors and
clientele changing from PSU (public sector unit) to zonal railways.
• The company continued to pursue international opportunities.
CIVIL
• During the quarter, this segment saw revenue at ₹1,100 crore, growing by 30% on a YoY basis, aided
by strong execution across segments.
• This segment continues to gain traction in terms of order inflow and secured orders of over ₹2,500
crore as of 9M FY24 mainly towards industrial, commercial & residential buildings, public spaces and
data centres with breakthrough orders from hospital and FMCG (fast moving and consumer goods)
segments.
• They had won a project for a high-rise building from a real estate developer taking the total highrise building projects to 50 till date.
OIL AND GAS
• This segment saw revenue at ₹182 crore in Q3 FY24 with 15% growth on a YoY basis.
• They secured another order for composite station work.
• Orders in pipeline for L1 amount to ₹900 crore, from both government and private players.
• They have been exploring international opportunities and have been approved by a leading global
energy company based in the Middle East.
CABLES
• The cables segment reported revenue of ₹383 crore, during the quarter, up by 4% YoY. Margin
contribution continued to be healthy on back of improved product mix.
• It developed unique products such as EV charging cable and green cable.
SOLAR
• Execution is in progress for its largest solar project of 600 MW (megawatt) in Karnataka.
• It continued to bid actively for select opportunities in line with the sustained commitment of the
government to promote renewable energy.
• This segment would soon be a growth driver moving ahead.
UPDATES
• The tender pipeline along with tender under evaluation stood at ₹1,30,000 crore.
FUTURE OUTLOOK
• The management reiterated revenue guidance of ₹20,000 crore in FY24 and a robust growth on
account of a strong order book as well as tender pipeline.
• They anticipate that the EBITDA margins will continue to see improvement in the upcoming quarters
to reach ~7% in FY24.
• On the domestic front, in the T&D business, they have visibility of ₹25,000 crore worth of projects
that they anticipate to win over the next few quarters.
• In terms of the civil segment, the management believes it to be a medium-term growth driver
backed by a healthy order book pipeline.
• They would scale up the oil & gas segment in the coming years.
• It expects some of the collections from Afghanistan to come in by Q4 FY24 and the balance in the
upcoming quarters.
• The management anticipates the interest cost as a percentage of revenue to reduce in the coming
times.
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