Key Points from the Earnings Conference Call
- Strong Q2 Performance:
- Increased tender activity and revenue growth due to government push in the water sector.
- Improved performance driven by urbanization and increased demand for sanitation and drinking water.
- Order Book and Pipeline:
- Current unexecuted order book stands at approximately 2,345 crores.
- Current bid pipeline is around 6,470 crores, with significant opportunities from the Amit scheme.
- Expecting to convert a significant portion of the pipeline into orders in the next 2-3 months.
- Financial Performance:
- Operating income for the first half of FY25 is 435.214 crores.
- Hopeful of delivering similar performance in the coming years.
- Margins and Outlook:
- Confident of maintaining margins around 29%.
- Expecting a stronger H2 FY25 compared to H1 due to the monsoon season.
- Aim to maintain the growth trajectory and improve upon past performance.
- Geographical Focus:
- Majority of orders currently come from Uttar Pradesh.
- Expecting increased order inflow from the water sector, particularly from the Amit scheme.
- New Projects and Diversification:
- Secured a 700 crore project in Kolkata.
- Actively bidding for projects in other states like Jharkhand, Chhattisgarh, and Karnataka.
- Exploring opportunities in the power sector.
- Considering diversification into the building and construction sector.
- Financial Position and Future Plans:
- Comfortable with the current financial position and no immediate plans for fundraising.
- Aim to maintain the growth rate and improve upon past performance.
- Exploring options for monetizing the land acquired from the paper company.
- Considering hiring a new CFO.
- No significant penalties imposed for delayed execution or non-fulfillment of performance.
- Secured an EN status for a 700 crore project in Kolkata.
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