SPML Infra Limited Earnings Conference Call Summary (May 31, 2024)
Company Overview
• Established in 1981, specializes in infrastructure development.
• Focus on water supply and wastewater management.
• Completed over 650 projects across India.
Financial Highlights
• Q4 FY24 Performance:
• Revenue increased by 84% to Rs. 463 crore.
• Profit After Tax (PAT) of Rs. 17 crore (up from Rs. 1 crore in Q3 FY24).
• Full Year Performance:
• Revenue grew by 50% to Rs. 1,318 crore.
• PAT of Rs. 19.5 crore.
• Current order book stands at Rs. 1,300 crore.
Strategic Focus
• Targeting large, fully funded water supply projects.
• Emphasis on profitability over revenue growth.
• Anticipates robust order pipeline with annual intake of Rs. 2,000 crore to Rs. 4,000 crore.
Debt Restructuring and Financial Management
• Successfully restructured debt, allowing manageable repayment options.
• Total debt approximately Rs. 511 crore; Rs. 267 crore classified as deferred income.
• Significant repayments made, including Rs. 224 crore under the Vivad se Vishwas scheme.
Arbitration and Claims
• Linked payments of Rs. 16 crore over 10 years to arbitration outcomes.
• Anticipates receiving Rs. 190 crore from a pending Supreme Court arbitration case.
• Approximately Rs. 600 crore in arbitration awards in their favor.
Operational Insights
• Focus on high-margin projects with profit margins of 15% to 20%.
• Similar margin profiles for Operations and Maintenance (O&M) and Engineering, Procurement, and Construction (EPC).
• Conservative accounting practices regarding deferred income and compliance with Ind AS regulations.
Management Confidence
• Improved efficiency through reduced manpower and effective fund monitoring.
• Sufficient liquidity to manage cash flows and take on significant projects.
• Management expressed confidence in handling future projects post-restructuring.
Conclusion
• The call concluded with gratitude for participant engagement and encouragement for further inquiries.