Q2FY24 Con-call highlights –
(+)
- Current order book – 20,000 crores.
- Received an order to work on India’s largest Hydro project.
- H2 is expected to bring better order inflow.
- The company currently handles 45% of the total hydro projects in India (Signifying dominance).
- There is tremendous potential in the sector going ahead.
- Share of tunneling projects to increase further (Better margins).
- Debt repayment is to happen throughout the next 3-4 years.
- Revenue growth guidance 15-20%.
- Expect an inflow of 150-200 crores through the Vivadh se Vishwas scheme.
- 90-95% price escalation is passed on to the clients.
- Debt reduction will consistently increase the net profit margin as interest costs reduce.
- H2 will be much stronger.
(-)
- Election year might temporarily hamper big order inflows.
- High debt remains a pinching point.
(i)
- 60% Hydro | 21% irrigation | 12% tunneling | road and others.
- 62% order inflow from PSUs | 35% state govt. | others.
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