Kalpataru Projects International hosted a conference call on Feb 14, 2025. In the conference call the company was represented by Manish Mohnot, MD & CEO.

Key takeaways of the call

YTD FY25 Order Inflows at Rs 20,181 crore and including L1 orders it will be exceeding Rs 22600 crore. Record order wins with significant traction in HVDC T&D projects and B&F business. About  80-90% of orders wins are from core T&D business.  The OI of Rs 20181 crore includes the RS 185 crore orders announced yesterday.

Order pipeline in  T&D, B&F, Metro and International O&G are continue to be strong. 

Next 12-18 months is expected to be strong in order inflow from T&D 

Targeting 5% margin at PBT level  and  15-20% growth in topline. 

T&D orders intake was about RS 6000 crore and including L! it will be about Rs 7000 crore plus. Additionaly  about 4000 crore is in bidding pipeline of which 3000 crore will be decided in a month. 

The company won about 7000 crore of T&D orders out of about Rs 35000 crore tendered in the country in last 6 months.

Water biz – Revenue of water verticals registered a CAGR growth of over 60% in last five years from about Rs 642 crore to about Rs 3075 crore.  The order book also grew to a strong Rs 10000 crore. About 75-80% of water OB is JJM orders (and of which 40% is from UP projects) and balance from other schemes/utilities.  However the cash flow from clients has slowed down due to budget constraints for a while. Thus on increasing receivable   forced the company to slowed down execution. Cautious on short term outlook for water but bullish on longterm in case of water vertical.  Expect cash flow to improve going forward from March 2025 onwards depending on budgetary allocation by Central Government.

Continue to focus on projects that are in advanced stage of closing in water.  The company will focus more on execution and cautious on picking up orders.

Receivable Water Segment: The bills raised pending payment is Rs 450-500 crore and another Rs 250 crore is on final stages for billing. So about Rs 700 crore plus will be pending for payments by Feb 2025 end.  Some collections from odisha and mp in Jan-Feb 2025 but no traction in UP.

Except railway vertical all other verticals are expected to register double digit growth in FY26.

Railways the competition has increased with usually for any tenders there is 20 players competing. However in railways the company looks to bag orders at international market especially in second half of next fiscal.  The company picked up metro electrification orders worth about RS 300 crore that come with reasonably good margin in Q3FY25.

B&F vertical is attractive for next 3 years atleast there is good number of large orders such as airports, data centres, large factories, metro stations etc. Given labour intensive and capex intensive nature of this business vertical the company is looking largely on large size projects.

The recently announced Union Budget places strong emphasis on investments in power transmission, clean energy, water supply, urban mobility, new regional airports, and other key EPC segments. In this backdrop, we are well placed to seize upcoming opportunities and further strengthen our market position given our demonstrated capabilities in diverse EPC segments, strong balance sheet, and extensive global experience.