AGM22
- 20-25% growth guidance for FY23
- Major end industries – oil & gas, renewables
- Capex – We did last capex in FY19 to increase capacity from 1000 MVA to 4000 MVA, that is enough for growth in near term, no new capex needed for now.
- Capacity at Gavasad – 4000 MVA. If capacity is used to produce 100% renewable transformers, it would be 5000 MVA. If capacity is used to produce 100% oil & gas transformers, it would be 3000 MVA.
- Order Book – present order book is more than 130cr (exports – 45cr, domestic – 85cr). Majority of domestic order book is from wind & solar segment. 15-20cr order from sugar/steel/cement segments. It is taking 14-16 weeks to deliver an order
- Export is better margin business
- capacity utilisation was 60% in FY22, it is projected to be 80% in FY23
- Customers – Adani/Tata Power/Sterling & Wilson/L&T/Mahindra/Torrent Power. Not doing much business with state electricity boards (SEBs) due to large receivable days.
- Current land have space to increase capacity by 2-3x. 10cr capex needed to double capacity. Time taken from start of capex to commercialisation is 18-24 months.
- oil & gas transformers have better margins than renewable transformers.
- The company is not present in 220 kVA step up transformers
Disclosure – Invested from much lower levels, sell transactions in last 30 days, still a decent part of portfolio, not a buy/sell reco, not a SEBI registered analyst, please do your own due diligence
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