- Total Income (Q3 FY24): INR 1,115 crores
- EBITDA (Q3 FY24): INR 141 crores
- PAT (Q3 FY24): INR 61 crores
- Total Income (Q3 FY23): INR 912 crores
- EBITDA (Q3 FY23): INR 106 crores
- PAT (Q3 FY23): INR 51 crores
- Revenue Growth (Q3 YoY): 22%
- EBITDA Growth (Q3 YoY): 34%
- PAT Growth (Q3 YoY): 21%
- Revenue Mix (Q3 FY24): Mechanical: INR 231 crores, Civil: INR 596 crores, O&M: INR 260 crores, Electrical: INR 21 crores, Other Income: INR 7 crores
- Revenue Mix (Q3 FY23): Mechanical: INR 144 crores, Civil: INR 492 crores, O&M: INR 260 crores, Electrical: INR 12 crores, Other Income: INR 3 crores
- Total Income (9M FY24): INR 2,923 crores
- EBITDA (9M FY24): INR 364 crores
- PAT (9M FY24): INR 164 crores
- Total Income (9M FY23): INR 2,435 crores
- EBITDA (9M FY23): INR 281 crores
- PAT (9M FY23): INR 134 crores
- Revenue Growth (9M YoY): 20%
- EBITDA Growth (9M YoY): 30%
- PAT Growth (9M YoY): 22%
- Revenue Mix (9M FY24): Mechanical: INR 518 crores, Civil: INR 1,585 crores, O&M: INR 756 crores, Electrical: INR 47 crores, Other Income: INR 17 crores
- Revenue Mix (9M FY23): Mechanical: INR 458 crores, Civil: INR 1,235 crores, O&M: INR 682 crores, Electrical: INR 52 crores, Other Income: INR 8 crores
- Gross Debt (Dec 31, 2023): INR 499 crores
- Net Debt (Dec 31, 2023): -INR 23 crores
- Debt-to-Equity Ratio (Dec 31, 2023): 0.28
- Order Backlog (Dec 31, 2023): INR 55,858 crores (including MDOs)
- Order Backlog (Current): INR 57,328 crores (including MDOs)
- Order Inflow Target (FY24): INR 10,000 crores
- Order Inflow Achieved (Current): INR 6,768 crores
- Operating Cash Flow (Q3 FY24): Positive INR 21 crores
- Net Current Days (Q3 FY24): 125 days
- Net Current Days (Q3 FY23): 131 days
Release Date: February 20, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Power Mech Projects Ltd (BOM:539302, Financial) reported a 22% growth in total income for Q3 FY24 compared to the same quarter last year.
- EBITDA for Q3 FY24 increased by 34% year-over-year, indicating improved operational efficiency.
- The company has a healthy order book of INR57,328 crores, including both domestic and international projects.
- Power Mech Projects Ltd (BOM:539302) is now a net debt-free company, with a debt-to-equity ratio of 0.28 as of December 31, 2023.
- The company has started mining operations in its MDO projects, with significant coal production expected to ramp up in the coming years.
Negative Points
- The electrical business segment saw a decline of 10% due to lower order bookings.
- O&M business remained flat in Q3 FY24, showing no significant growth compared to the previous year.
- The company had to pay an additional liability of INR26.21 crores towards income tax and INR11.91 crores towards interest on income tax due to a tax raid.
- There is a slowdown in some projects due to political disturbances and pending approvals, particularly in the Jharkhand region.
- The company faces challenges in the competitive landscape, especially in the thermal power sector, which has seen a lull in recent years.
Q & A Highlights
Q: Out of the pending order backlog of almost INR17,596 crores, what percentage is from BHEL?
A: The exact percentage from BHEL is not immediately available, but it is a significant portion of the backlog. (SK Kodandaramaiah, Director)
Q: How do you see the competitive scenario in the thermal power sector evolving?
A: BHEL remains a significant player, with L&T and General Electric also in the mix. Power Mech is well-positioned due to its strong presence and capability in civil, structural, and mechanical works. (SK Kodandaramaiah, Director)
Q: What is the scope of work per megawatt in terms of crores?
A: For a comprehensive EPC job, it is around INR8 crores to INR8.5 crores per megawatt. Power Mech's portion for services and civil work can be around INR1.5 crores to INR2 crores per megawatt. (SK Kodandaramaiah, Director)
Q: What is the maximum amount of debt banks are ready to lend to fund growth?
A: Banks are ready to fund up to 25% of our projected turnover, which means we can borrow another INR500 crores to INR600 crores if needed. (Nani Aravind, CFO)
Q: Are there any plans to enter the hydrogen-related CapEx market?
A: Yes, we are exploring opportunities in the hydrogen sector, with significant investments planned by private players like Adani and Reliance. (SK Kodandaramaiah, Director)
Q: Have you started mining at the Kalyaneswari Tasra (KT) project, and what are the future plans?
A: Yes, we have started mining and have already mined 80,000 metric tonnes of coking coal. We plan to ramp up production to 1.5 million metric tonnes next financial year. (Rohit Sajja, President - Business Development and Operations)
Q: What is the status of the Jal Jeevan Mission water projects?
A: We are actively involved in several projects and continue to bid for new ones. We do not foresee any slowdown in ordering post-elections. (SK Kodandaramaiah, Director)
Q: What is the expected execution timeline for the civil and erection order backlog?
A: The average cycle time is around three years, and we are well-equipped to handle the execution with our current resources. (SK Kodandaramaiah, Director)
Q: What is the guidance for revenue growth in FY25?
A: We are targeting a 30% to 35% growth in revenue for FY25, including contributions from FGD and mining projects. (Nani Aravind, CFO)
Q: What is the current portion of international orders?
A: The current backlog for international orders is INR113 crores. (SK Kodandaramaiah, Director)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
