Patel Engineering Concall: Result, Revenue Growth, Order Book & Debt Reduction | Feb 2025

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.
  • ₹100 crores from Michigan share sale.
  • ₹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

• Holds 45% market share in ongoing 18,000 MW hydropower projects.

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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