Q1FY25 Concall Summary
Business Updates
- The company has sold its entire stake in Kolhapur Steel Limited and this will lead to cost savings and a simpler corporate structure
- The growth guidance of double digit revenue growth for FY25 remains intact
Participants
Emkay Global
Mahindra Manulife
Unique PMS
Svan Investments
LIC Mutual Fund
East Lane Capital
Renaissance Investments
QnA
- There are some IT projects that are being undertaken within the organization and these will be one time in nature
- There were some large orders that couldn’t be delivered in this quarter and that led to the lower profitability
- There have been some delays from the American engine supplier which has led to delay in delivery of the larger packages
- There is growth in America from alternative energy and municipal water department. In Europe demand is coming from water sector and services business, In South East Asia demand is coming from data centers and chemicals and in South Africa demand is coming from mining and fire segment
- The belief of the management is to reduce the number of subsidiaries that the company has which should help in lowering costs and improve managerial efficiency
- The focus remains on improving penetration of products in the market and automation within the factories for better productivity
- The company is the only company in the world to get the latest efficiency norms updated on its pumps and focus is to get efficiency which is world’s best and thus the customers can now see it as a company with world class products
- There is a good positivity in almost all the sectors and as far as thermal power is concerned there have already orders that have started to come in
- Both nuclear and thermal power shall play a large role in the incremental capacity addition in power sector which is estimated to increase capacity from current 450 GW to 1000 GW by 2047 and nuclear could play a larger part
- In any project the cost on pumps is around 2% of the total project cost
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