Key highlights from Kalpataru Power Transmission Limited (KALPATPOWR) Q3 FY22 Earnings Concall
Management Update:
- KALPATPOWR expect order inflows to reach around INR8,000 crores for KPTL and INR12,000 crores for JMC for full-year ’22, wherein at a consolidated level order inflow will be of approximately INR 20,000 crores for the current year.
Q&A Highlights:
- Swarnim Maheshwari from Edelweiss asked about the strategic shift in dispatches. Manish Mohnot MD said that this shift has three components. Firstly, freight prices and availability of containers. Secondly, on EPC projects where the site requires deliveries much later than now; deliveries were slightly shifted to make sure the commodity cycle is cashed at the right time.
- Swarnim Maheshwari from Edelweiss also enquired if the company is maintaining 5-10% revenue growth guidance, given the nine-month is at negative 5%. Manish Mohnot MD replied that the company is changing the revenue guidance for the standalone company. The company doesn’t believe it will be growing in the current year and there could be some de-growth as whole at a standalone level.
- Parikshit from HDFC Securities asked about pledge. Manish Mohnot, MD CEO said that on a pledge perspective, the pledge has not moved significantly because of any borrowings. The borrowings continue to be constant. The company has not seen the pledge come down as anticipated at the beginning of the year, but believe that it should come down gradually during the current year.
- Bharat Sheth with Quest Investment asked about the JMC guidance for the current year and approximately next year. SK Tripathi CEO said the company is not expecting a decline. Rather the same momentum will continue in 4Q and little dissipated momentum will continue next year. Next year, the company expects a growth of 10-15%.
- Bharat Sheth with Quest Investment asked about current year EBITDA margin for JMC. SK Tripathi CEO said that currently the company is at 9% and overall 7.6%. The company expects the year to close at around 9%.
- Swarnim Maheshwari from Edelweiss asked what kind of money does the company expect from the sale of road assets from Indore and from SSL. Manish Mohnot, MD said it’s difficult to quantify on SSL and road assets due to confidentiality. In Indore, the investment is around INR300 crores, and that entire amount the company should definitely collect in the next 12 to 15 months. On SSL, the company does not expect any significant hits to come as the market is attractive in the long term.
- Swarnim Maheshwari from Edelweiss asked if the company expects to be net debt free by H1 FY23 or FY23 end. Manish Mohnot, MD said the company continues to be focused on keeping debt at minimal levels. The company added that it might not reach that target maybe by H1, but by March ‘23 the debt should further come down. One should see debt coming down gradually QonQ over the next 4-5 quarters.