Table of Contents
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.
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I’m Rahul Chaudhary, and I write about everything related to the Share Market. From Stock Trends and Share Prices to the Latest News and IPO Updates, my articles aim to provide you with valuable insights to help you navigate the world of investing. Stay tuned for expert tips and updates to keep you informed!
