Thursday, 29 December 2016

Techno Electric: Q2 Concall Summary

Q2 Concall Summary
  • Order book as on 30th September 2016 stands at Rs.2,500 crores, which includes our L1 position in 765 kV Substation Package at Raigarh, Indore and Itarsi and the package value is about Rs.150 crores.
  • For PGCIL, the ratio of investment between line and substation has undergone change from 80:20 to 65:35.
  • In Wind segment the related challenges have eased, we are witnessing improvement in grid availability in State of Tamil Nadu and the overall wind flow has been positive.
  • Revenue from EPC almost jumped by 47% from Rs.202 crores to Rs.297 crores. Consolidated revenue for the quarter also grew by 34% to Rs.368 crores against Rs.253 crores achieved during the same quarter of the previous year.
  • Operating profit for the EPC segment for the quarter stood at Rs.45.88 crores as against Rs.33 crores, showing a jump of 38.56%. Operating profit margin for the quarter stood at 15.46%.
  • The PAT on standalone basis for the quarter stood at Rs.44.79 crores as against Rs.34.07 crores last year, showing a growth of 31.46%. On consolidated basis, the PAT has jumped by 58% for the quarter at Rs.70 crores against Rs.44.5 crores.
  • Able to manage the receivables within 100-days cycle which is one of the best in the industry.
  • Outlook is very positive. States are now coming more ahead of the Power Grid also in building their own networks particularly the states having more of renewable power with them as well as some transmission networks with the other states. Seeing a strong momentum in the State of MP, Rajasthan, Chhattisgarh, Andhra, Telengana, Tamil Nadu, all are becoming fairly active.
  • There is no impact on margins with more orders from state electricity board
  • Payments are received directly from the funding agencies like REC/PFC/ADB
  • Domonetization has not adversely impacted operations. On the contrary, it has helped. Construction material cost is now 10% to 15% lower.
  • Consolidated debt is 300cr (275 cr in Simran and 25cr in Techno). Practically, short term debt free (5 cr)
  • Cash balance is 225 cr
  • Expect PAT margin over consolidated top line to be around 14.5-15% this year as against 11-11.5%

Learning from Security Analysis - Part 1

I have started re-reading Security Analysis, 6th edition, (also will add on things from the 5th ed). I have been putting it on the backburn...