Power Mech Projects Q2 Results Review

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Power Mech Projects Ltd. reported its highest-ever consolidated second quarter revenue at Rs 7.7 billion for Q2 FY23, up by 43% YoY. The topline was above our estimate by 2.2%.

Erection, testing and commissioning /operation and maintenance/civil segment’s sales jumped by 52%/20%/65% YoY to Rs 1.61 billion/Rs 2.26 billion/Rs 3.67 billion. Ebitda stood at Rs 866 million, up 49.9% YoY.

Ebitda margin improved by 50 bps YoY to 11.2%, below our estimate of 11.5%. Consequently, profit after tax jumped 61.8% YoY to Rs 438 million, 4% below our estimate.

Order book (excluding the mine development and operation  contract worth Rs 92.94 billion) remains strong at Rs 148 billion (5.5 times FY22 sales). Order inflow for Q2 FY23 stood at Rs 74.45 billion (including Rs 61.6 billion flue gas desulphurisation order from Adani Group).

Power Mech is targeting Rs 100 billion/Rs 80 billion/Rs 90 billion order intake for FY23/FY24/FY25.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.