- 14 Nov 2024
- ICICI Securities
PATEL ENGINEERING: STRONG EXECUTION DRIVES TOPLINE; PAT INCREASES
News: Patel Engineering reported consolidated revenue of ₹1174 crore, up 15% YoY owing to healthy execution despite monsoon period. Operating EBITDA was reported at ₹162.2 crore, up 15.8% YoY. EBITDA margin at 13.8% was up 10 bps YoY. PAT was reported at ₹73.4 crore, up 93% YoY owing to healthy growth in total income and lower interest cost.
Views: The company enjoys a strong order book of ₹17261 crore, 3.8x book to bill, with hydro power projects making up 64% of the orderbook. The company is poised to take advantage of the immediate opportunities in the hydro power segment, having indicated a bid pipeline of nearly ₹50,000 crore worth of projects, out of which it has submitted bids for projects worth ₹10,000 crore and currently under evaluation, it is also actively pursuing opportunities in the irrigation, water and road segments. the management has maintained its margin guidance of 13-14% for FY25. The recently signed MoU’s with RVNL and IRCON will strengthen the company’s execution ability to undertake larger projects given the opportunity from the key segment driving the topline coupled with stable balance sheet, Patel engineering is poised for growth ahead.
Impact: Positive