Management always gives very high order book projections but it doesn’t seem to reflect in the revenues. Did anyone notice this? Below I have copied promoter’s statement from the last conference call.
‘’‘In terms of order inflow and backlogs, we started financial year ‘24 with
an order book of almost Rs 521 Crores and as it peaks, the new orders of Rs 760 Crores in the year till end of March 2024. Our current outstanding order
book stands at approximately Rs 964 Crores, a strong growth of 85% year-on-
year and translates into 3.6x of our Financial Year 2024 revenue.’’’
If they had an order book of 521 crores last year, and still it translates to only 272 Crores of revenue then it doesn’t make sense to make any use of the order book projections. Even if we remove the GST part from the 521 Crores number still a lot of the orders have spilled over to next year taking the order book to 964 Crores.
Now why 964 Crores number is insignificant is because the company hasn’t told us by when these orders need to or will be executed, if these will get executed in 3 years’ time then it doesn’t translate to a significant revenue growth which can lead to P/E re-rating. If someone has any idea by when is the management aiming to execute these orders and by when the customers will be billed and the amount will translate to revenue, it would be very helpful if they could share these details.
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