Ion exchange had about 2500 Cr engineering order book at end of FY 23.
order in bids ~8500 (assuming a 10% conversion rate, we get new orders worth ~800 Cr).
So total orderbook for enginereing alone stands at ~3300 Cr.
How long does it take for orders to be recognised as revenue on average ?
Can we assume that all of this is recognised in the next 4 years ?
Now Engineering has been about 55-60% of overall revenue so we can assume that apart from this, chemicals and consumer will contribute about 1000 cr over the next 3 years (Assuming 30% of overall revenue).
So are we looking at close to 4000-4500Cr revenue by Fy 27?
That’s a really good growth rate at approximately 25% every year, which seems too good to be true.
What am I missing here?
I’m guessing enginereing growth rate is much higher than chemicals (which is growing at about 10%).
Even then , if chemicals and consumer can generate about 600Cr by FY 27 and Engineering can recognise ~3000 cr, that’s still about 3600-3800 Cr revenue which is a good 20% annualised growth
tracking - not invested