Power Mech Projects (POWERMECH) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue rose to ₹1,301.53 Cr, up from ₹865.13 Cr in Q1 FY24, with net profit after tax at ₹61.72 Cr and EPS at ₹38.04; Board approved results on August 12, 2024, with an unmodified review report.

• EBITDA for Q1 FY25 was INR 123 crore, with EBITDA margin improving to 12.1% from 12%.

• Order inflow for Q1 FY25 was INR 1,014 crore, with a total order backlog of INR 57,793 crore as of August 12, 2024.

• Business environment improved post-elections, with execution cycles picking up and strong order pipeline across power, non-power, and windmill sectors.

Financial highlights

• Mechanical business revenue declined 36% year-over-year to INR 102 crore, while civil (including railways, mining, water) grew 13% to INR 557 crore.

• Windmill revenue surged 52% to INR 341 crore; electrical business stable at INR 8 crore.

• Net current days increased to 142 from 112 due to election-related delays in receivables and certification.

• Gross debt at INR 581 crore, net debt at INR 40 crore, and debt-equity ratio at 0.31x as of June 30, 2024.

• Earnings per share (EPS) for Q1 FY25 was ₹38.04, up from ₹34.20 in Q1 FY24.

Outlook and guidance

• FY25 revenue growth targeted at 25%-30%, with stable to improving margins as MDO business ramps up.

• Order inflow guidance for FY25 set at INR 11,000 crore.

• Focus areas include industrial O&M, railways, water, windmill, and MDO for revenue and margin stability.

• Management has decided not to appeal recent tax assessment orders and has made provisions accordingly.

• Margin improvement from MDO expected to materialize in FY26-FY27 as production ramps up.