Submission Details
• Date of submission: August 21, 2023
• Transcript of Q1 FY24 earnings call held on August 16, 2023
• Submitted to: National Stock Exchange of India and Bombay Stock Exchange
• Participants:
• Mr. Shashank Agarwal (Joint Managing Director)
• Mr. Pramod Kala (Chief Financial Officer)
• Ms. Deepika Murarka (Moderator from Choice Equity Broking)
Company Overview
• Established 15 years ago as a leading infrastructure solution provider
• Specializes in:
• Telecom towers
• Electrification structures
• EPC projects for power and railways
• Manufacturing facilities: Three in Uttar Pradesh
• Achievements: Zero defect production and quick delivery times
• Client base: Over 600 globally
Financial Performance (Q1 FY24)
• Revenue: INR 261.86 crores (24.3% increase)
• EBITDA: INR 23.58 crores
• EBITDA Margin: Improved to 9.01%
• Current order book: INR 1,435 crores
• Strong prospects in power and telecom sectors due to:
• 5G rollout
• Government infrastructure investments
Future Outlook
• Commitment to innovation and quality, supported by a partnership with Ramboll (Denmark)
• Anticipated growth from:
• Increasing electricity demand
• Government renewable energy targets
• New galvanization plant expected to enhance production capabilities and margins
Margin and Order Insights
• Sustainable EBITDA margins projected between 9% and 10%
• Potential margin improvement with the new galvanizing plant
• Secured orders:
• INR 400 crores in railway electrification
• INR 750 crores in rural electrification
• Focus on EPC projects with better margins
• Healthy export order book, including projects in Nepal and potential in Africa
Financial Strategy
• Plan to increase working capital limits by INR 50 crores
• No immediate plans for equity dilution
• New galvanizing plant expected to generate an additional INR 50 crores in revenue
Conclusion of Call
• Shashank Agarwal thanked participants and addressed all questions
• Pramod Kala also expressed gratitude
• Call officially ended by the moderator from Choice Equity Broking Private Limited