EMS Limited – Tapping in the growth in the water management space

Heard the earnings call –

1. Founder was sounding confident of keeping with trajectory of 30-35% growth with 25% margin. If 30% growth is met company will reach 1000 cr revenue this quarter

2. This quarter margin was high 29% but will stay the course of 25-26%

3. Revenue split between water and non water projects to remain at 70-30% like usual

4. Lower growth in quarter due to long monsoon also due to high base of last year Q2.

5. H1/H2 ratio of revenue roughly is 40/60 so expect H2 to be better

6. Current orderbook at 2340 cr which will be executed in next 2 years and bidding for roughly 6700 crores

7. Last quarter got a 700 cr order from Kolkata Municipal corporation trying to look for more projects in east side specifically Jharkand

8. Looking to pick up project in power transmission setup along with land but revenue ratio to remain 70% water

9. Govt’s amrit scheme to improve water bodies and sewerage in main cities will bring multiple porjects in next few years

All in all this was a better and confident call than interview promoter gave in September. Hoping for a good H2.