Future Commentary by Management:
- Growth in revenue is due to infrastructure, heavy engineering, IT services & power business
- Current order book stand 370000 crores. Strong order book provides growth visibility. Highest orders from infrastructure segment. Domestic orderbook has increased significantly.
- Very strong pipeline seen for H2 FY23: Management indicated a healthy prospect pipeline of Rs6.3trn spread across domestic (Rs5trn) and international (Rs1.3trn). Infrastructure segment prospects stand at Rs4.54trn (Rs3.98trn from domestic and Rs0.56 from international), spread across water (23%), heavy civil engineering (22%), transportation (20%), buildings and factories (19%), power T&D (14%) and metallurgical and material handling (1%).
- The execution is going to be more cash flow based.
- Improved operation efficiencies has led to stale margins for the company despite a challenging environment due to increase in costs.
- Lower interest cost due to debt repayment and metro financing.
- Most of the contracts taken a variable price contracts. In infrastructure business, 85% of the orders taken a variably priced and 65% of the orders on manufacturing & projects segment are variably priced.
- Revenue growth is expected to be 12-15% in group revenues and order inflow for FY23.
- Order inflow for Q2 FY23 grew 23% led by strong order wins in infrastructure & hydrocarbon sectors.
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