- Total Income (Q4 FY24): INR1,312 crores (up 11% YoY from INR1,183 crores in Q4 FY23).
- EBITDA (Q4 FY24): INR160 crores (up 14% YoY from INR140 crores in Q4 FY23).
- PAT (Q4 FY24): INR84 crores (up 12% YoY from INR75 crores in Q4 FY23).
- Mechanical Business Revenue (Q4 FY24): INR176 crores (up 19% YoY from INR148 crores in Q4 FY23).
- Civil Business Revenue (Q4 FY24): INR766 crores (almost flat YoY from INR761 crores in Q4 FY23).
- O&M Revenue (Q4 FY24): INR350 crores (up 43% YoY from INR247 crores in Q4 FY23).
- Electrical Business Revenue (Q4 FY24): INR6 crores (down 66% YoY from INR18 crores in Q4 FY23).
- Total Income (FY24): INR4,234 crores (up 17% YoY from INR3,618 crores in FY23).
- EBITDA (FY24): INR524 crores (up 25% YoY from INR421 crores in FY23).
- PAT (FY24): INR248 crores (up 19% YoY from INR209 crores in FY23).
- Mechanical Business Revenue (FY24): INR692 crores (up 14% YoY from INR606 crores in FY23).
- Civil Business Revenue (FY24): INR2,352 crores (up 18% YoY from INR1,995 crores in FY23).
- O&M Revenue (FY24): INR1,109 crores (up 18% YoY from INR930 crores in FY23).
- Electrical Business Revenue (FY24): INR53 crores (down 24% YoY from INR69 crores in FY23).
- Operating Cash Flow (FY24): Positive by INR204 crores.
- Net Current Days (FY24): Reduced to 112 days from 131 days in FY23.
- Gross Debt (as of March 31, 2024): INR388 crores.
- Net Debt (as of March 31, 2024): Negative INR155 crores.
- Debt Equity Ratio (as of March 31, 2024): 0.21%.
- Order Book (FY24): Secured orders worth INR8,759 crores; backlog of INR57,053 crores.
- EBITDA Margin (FY24): Increased to 12.37% from 11.62% in FY23.
Release Date: May 24, 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 total income of INR1,312 crores for Q4 FY24, an 11% increase year-on-year.
- EBITDA for Q4 FY24 grew by 14% to INR160 crores, compared to INR140 crores in Q4 FY23.
- Profit After Tax (PAT) increased by 12% to INR84 crores in Q4 FY24 from INR75 crores in Q4 FY23.
- The company achieved its highest-ever revenue, EBITDA, and PAT in its Silver Jubilee year.
- Order backlog increased significantly, with the O&M segment seeing a 266% jump in backlog from INR600 crores to INR2,197 crores.
Negative Points
- The electrical business saw a significant decline of 66% in Q4 FY24, with revenues dropping to INR6 crores from INR18 crores in Q4 FY23.
- The company missed its order target for FY24, securing INR8,759 crores against a target of INR10,000 crores.
- There was a slowdown in some areas due to election schedules, impacting revenue growth.
- The debt levels, although controlled, still present a concern with gross debt at INR388 crores as of March 31, 2024.
- The FGD projects faced delays due to engineering approval issues and local resizing problems, affecting execution timelines.
Q & A Highlights
Q: Your O&M order book has reduced to 3.5%. What gives you confidence that the margins should improve from here? Also, what are the margins on the MDO contracts?
A: The new O&M projects we have taken will have better margins. We expect around INR2,000 crores in order bookings for FY25. For the MDO segment, we expect an EBITDA of 18% to 20% for the first mine and 27% to 30% for the second mine once we reach peak capacity in two years. (S. Kodandaramaiah, Director, Business Development; Rohit Sajja, President, Business Development and Operations)
Q: What is the progress on the Adani FGD order? How much will get executed this year?
A: The Udupi project is progressing well, with INR1,200 crores of ordering done. We expect around INR350 crores of revenue from this project in FY25. Other projects have local issues and layout changes, but we expect improvements by the end of Q3 or Q4. (S. Kodandaramaiah, Director, Business Development; Nani Aravind, Chief Financial Officer)
Q: Can you clarify the revenue and margin expectations for the MDO business in FY26?
A: For FY27, we expect peak revenues of INR1,800 crores to INR1,900 crores from both MDOs, translating to INR2,000 crores with the washery. EBITDA margins will be 17% to 20% for the first mine and 27% to 30% for the second mine. (Rohit Sajja, President, Business Development and Operations; Nani Aravind, Chief Financial Officer)
Q: What is the reason for the 18% revenue growth in FY24 despite a large order book?
A: There were issues on the FGD front and local issues with the UP Water scheme. However, we have done well in other segments like O&M. (S. Kodandaramaiah, Director, Business Development)
Q: What is the revenue guidance for FY25 and FY26?
A: We project around 30% growth for FY25, targeting INR5,500 crores. For FY26, we plan a 25% growth on FY25 numbers, aiming for around INR7,000 crores. (Nani Aravind, Chief Financial Officer)
Q: Will the CapEx for maintenance be funded through internal accruals?
A: The INR340 crores CapEx will be funded through a mix of term loans and internal accruals. We have earmarked funds for the washery investment. (Nani Aravind, Chief Financial Officer)
Q: What is the expected tax rate for FY25 and FY26?
A: We project a tax rate of around 25% to 26% for both FY25 and FY26. (Nani Aravind, Chief Financial Officer)
Q: Will there be any improvement in EBITDA margins in FY25?
A: We expect a slight improvement in EBITDA margins by 0.3% to 0.4%, achieving around 12.6% during FY25. (Nani Aravind, Chief Financial Officer)
Q: Are there any new MDO projects planned?
A: No new MDO projects are planned until we reach peak capacity for the current projects, which is expected by FY27. (Rohit Sajja, President, Business Development and Operations)
Q: What is the status of the FGD projects and any new orders?
A: The Udupi project is on track, and we expect INR300 crores in revenue from it this year. We are also L1 in INR700 crores worth of projects and have bid for INR4,600 crores worth of projects. (S. Kodandaramaiah, Director, Business Development; Nani Aravind, Chief Financial Officer)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
