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Construction & Engineering company Salasar Techno Engineering announced Q1FY24 results:
- In Q1FY24, revenue from operations experienced a healthy growth of 24.30% reaching Rs 2,618.59 million in Q1FY24 compared to Rs 2,106.68 million in Q1FY23. This growth was primarily driven by the rising demand for customized steel structures and diversified EPC solutions, as well as the efficient execution of the order book.
- EBITDA increased by 39.54% from Rs 168.99 million in Q1FY23 to Rs 235.81 million in Q1FY24 and EBITDA margins increased by 99 bps from 8.02% in Q1FY23 to 9.01% in Q1FY24 led by increase in the scale of operations and efficient utilisation of resources.
- PAT was recorded at Rs 101.47 million in Q1FY24 from Rs 73.18 million in Q1FY23 surging by 38.67% YoY and PAT Margins increased by 40 bps from 3.47% in Q1FY23 to 3.88% in Q1FY24.
Commenting on the performance of Q1FY24, the management team of STEL said, “We are happy to share with you our robust financial and business performance for Q1FY24. Our revenue from operations increased by 24.30% from Rs 2,106.68 million in Q1FY23 to Rs 2,618.59 million in Q1FY24. Our EBITDA margins increased by 99 bps from 8.02% in Q1FY23 to 9.01% in Q1FY24 and PAT margins improved by 40 bps in Q1FY24 to 3.88% in Q1FY24 compared to 3.47% in Q1FY23.
Our expertise and strengths continue to be reflected in our strong order book which is worth Rs 14,350 million In the EPC segment, we are experiencing heavy traction and have secured orders from various sources in both domestic and international markets. The towers and poles segment is also experiencing strong demand from both domestic and international markets. This heightened demand is primarily being driven by the escalating need for telecom towers and robust advancements in establishing 5G services across India. In addition, there has been a notable increase in electricity demand on a YoY basis which has led to increased and healthy demand for our products used in the power T&D industry. Moreover, in our heavy steel structures division, the outlook is equally positive because of the robust infrastructure push by the government.
Further, our new state-of-the-art galvanization plant is nearing completion and the said expansion will allow us to manufacture monopoles up to 3 meters in diameter used in higher KVA transmission lines. This segment faces less competition owing to our strong presence and will act as a value-added product offering better margins and boosting our revenue visibility. This new plant also deploys step-ahead processes and cutting-edge technologies which will enhance overall efficiency in the manufacturing process and enhance margins.
We believe that the above expansion will aid us in capitalizing on opportunities that emanate from India’s transformative shift towards stainless steel and galvanized steel, departing from conventional offerings. This transition is closely tied to India's dedication to sustainable infrastructure and its progression towards clean energy and achieving net-zero emissions.
Lastly, we remain focused on our core mission of delivering exceptional engineering and construction solutions to our customers while driving sustainable growth to our stakeholders. We will continue to invest in our network and technology, while also exploring new opportunities for growth and innovation. We would like to conclude by thanking our whole team who have stood tall with us in every situation”.
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