Power Mech Projects Q2 Results Review - Strong Quarter; Ordering Outlook Remains Strong: Nirmal Bang

Nirmal Bang Report

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.

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