Q4Fy24 Concall Highlights:
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Achievements: Successfully tested the most stringent Dynamic Short Circuit test on multiple transformers of various voltage ratings. With this, it has crossed a commendable milestone of successful Dynamic short circuit testing on a record 150-plus transformers in the last two decades.
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The technology for the 765 kV class shunt reactors has been fully absorbed during the year.
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OrderBook: The Company received the highest-ever order inflow during the year of 2,050 cr. incl. the export orders of 11% with unexecuted orders of 2,582 crores.
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Focus Areas: capacity expansion, being more export-focused, becoming fully backward integrated, exploring avenues for inorganic growth, and achieving operational excellence.
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Operational Performance: During FY24, the revenue from operations was at 1273 cr., a 7% decline from 1375 cr. in FY23. For FY24, export revenue was at 139 cr., a 117% increase from 64 cr. in FY23. Export contribution as a % of revenue was 11%.
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Orders in the pipeline: 17K crores of orders are in the pipeline, then anywhere between Rs.1,500 crores to Rs.2,000 crores should not be far-fetched.
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QIP raised - 500 cr for capacity expansion and backward integration and inorganic growth opportunities.
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Most of orders are on transmission side with power transformers of 220 kV up to 765 kV.
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More focussed on orders of EPC contractors over state utilities due to better cashflows.
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Current capacity: Its current capacity is 36,000 to 37,000 MVA capacity with 60-65% utilisation.
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Capacity expansion of 12000MVA in Q3Fy25:
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Revenue guidance FY25: Current orders of 2600 would be executed over 15 months with EBIDTA margins of 12.5-13%.
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Challenging to increase the capacity and its focusing to reducing the working cycle:
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Not much capacity for 400 kV and 765 kV transformers and very few players have capability to manufacture those:
- Less capacity in HVDC transformers as it needs skilled manpower:
- Huge demand for scott-connected and V-connected transformers from Indian railways and Its RDSO approved as well.
- Company is having working capital cycle of 120 days & working on reducing this.
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