Table of Contents
Read More:
Patel Engineering Concall – February 2025
Financial Performance
Patel Engineering Q3 FY25 Results
- Revenue: ₹1,205 crores, showing a 13.6% growth compared to last year.
- Net Profit: Increased 14.5% YoY, rising from ₹70 crores in Q3 FY24 to ₹80 crores in Q3 FY25.
- Nine-Month Net Profit: Grew 48% from ₹140 crores in FY24 to ₹209.3 crores in FY25.
EBITDA Performance
- Operating EBITDA: ₹184 crores, marking a 29.5% increase YoY.
- EBITDA Margin: Improved to 15.3%, up from 13.4% in Q3 FY24.
Standalone Performance
- Standalone Revenue: ₹1,187 crores, reflecting a 12.78% growth.
- Standalone Net Profit: Rose 72% YoY to ₹74 crores from ₹43 crores in Q3 FY24.
Project Updates
Completed Projects
- Jammu & Kashmir: Permanent integrated building project is almost complete. It is designed as a net-zero habitat to support soldiers in extreme weather.
- Hydroelectric & Tunneling: Major progress in Kwar Hydroelectric Project and Parnai Project.
Tunneling Developments
- Tunnel T-15 & T-14: Successful second-stage concreting completed.
- Rail Line Project: First kilometer of overt lining completed in Tunnel T-7.
Order Book & Future Outlook
Current Order Book
- Total orders stand at ₹16,396 crores:
- 64% from hydropower
- 21% from irrigation
- 10% from tunneling
Expected Order Inflows
- Targeting new orders worth ₹10,000-₹12,000 crores in FY26.
- Project awards expected to rise by 10-12%.
Government Initiatives & Industry Outlook
Union Budget Impact
- Infrastructure Allocation: ₹11.21 lakh crores with a focus on public-private partnerships.
- Asset Monetization Plan: ₹10 lakh crores announced to fund infrastructure projects.
Hydropower & Renewable Energy
- Government aims for 500 GW non-fossil fuel energy by 2030, aligning with Patel Engineering’s hydro and pumped storage projects.
Non-Core Asset Monetization
- Total earnings from asset sales: ₹486 crores, including:
- ₹36 crores from land sales.
- ₹350 crores from arbitration awards.
Debt & Financial Health
Debt Reduction
- Total Debt: Reduced to ₹1,422 crores from ₹1,885 crores last year.
- Debt-Equity Ratio: Improved to 0.38 from 0.6.
Management Outlook & Growth Plans
Revenue Growth Projections
- Expecting a 10% growth in revenue for FY26.
- Higher growth anticipated in FY27.
Challenges & Execution Strategy
- Slower Order Inflow: Only ₹400 crores in new orders so far in FY25.
- Management is confident in better execution in Q4 FY25, which is historically a strong quarter.
Strategic Bidding & Market Position
Ongoing Bidding Activity
- Submitted bids worth ₹30,000 crores.
- Expected upcoming projects valued at ₹30,000-₹40,000 crores.
- Bid Success Rate: Historically, around 20% of bids get converted into projects.
Market Leadership in Hydropower
Patel Engineering is well-positioned for long-term growth, with a strong order book, government support, and a clear execution strategy. While order inflow has been slower in FY25, management remains confident about achieving projected growth rates through efficient execution and strategic bidding.
Read More at sharepricenews.com
