Kalpataru Projects International hosted a conference call on Oct 29, 2024. In the conference call the company was represented by Manish Munoot, MD.

Key takeaways of the call

YTD order inflows stood at Rs 11865 crore and including L1 orders of Rs 7000 crore it will be about Rs 19000 crore.   The company is currently L1 for orders worth Rs 7000 crore.   Strong momentum in order inflows and tendering in T&D and B&F business. 

Order book position currently stands at Rs 60631 crore.

PBT level should maintain a margin of about 4.5-5%. 

Revenue level seen some challenges in water business that has impacted the topline in H1FY25 as the collections got delayed.

Water business – The company currently undertakes water projects in five states. Of these five states, three states have paid about 70% of the paid and the other two states the bill payments is more than 180 days.  So the execution will be on track/normal in case of these three states that started clearing bills and incase of balance two that depends on the bill clearance.   

The company maintains its order inflow guidance of Rs 22000-23000 crore for current fiscal.  For FY25 the company expects a healthy revenue growth. Revenue growth in Q3/Q4 growth will be good. 

The company expect the water business of the company remain to be subdued but not that extent that is significant. However except water all other business verticals are seeing strong execution and H2 will be stronger than H1.   Given current uncertainties in water business the company could not give a revenue guidance number for FY25. 

As on 30th September 2024, the consolidated and standalone net debt stand at Rs 3668 crore and Rs 2793 crore respectively.  

Signed binding agreements for sale of Vindyachal Expressway for enterprise value of Rs 775 crores; Deal expected to close in FY26, subject to requisite approvals and closing adjustments

Looking at QIP to raise funds to meet increasing working capital needs.

The company is looking at double digit margin in T&D business.

In Bangladesh the company is having only railway project and the execution team went back to Bangladesh and expect to see revenue and billing to happen in Q4.

Not many tenders in water come out in H1FY25  but it is timing and current year it could be subdued but next fiscal it will be back to normal next fiscal.

There is about Rs 60000 crore worth of opportunities in T&D over the next 12 months.

Water and railways segments remained sluggish due to a delay in tendering and execution activities. The initial focus is to complete the existing projects and bid for only margin-accretive projects.