Imp points from Investor presentation Patel Engineering FY23:
• PATEL ENGINEERING: CFO SAYS CO CONTINUE WITH EFFORTS TO MONETIZE NONCORE ASSETS AND HAVE REDUCED DEBT BY MORE THAN RUPEES 5,000 MILLION IN FY23 || CO EXPECT TO CONTINUE FURTHER REDUCTION IN OVERALL DEBT GOING FORWARD
• Order Book – 20807 CR- 49 projects
• Includes 6 Projects which are L1 Orders amounting to ₹ 32,217 Mn. Out of which 4 Projects worth ₹ 8,473 Mn has been converted to LOAs in Q1 FY
• Out of which 4 Projects worth ₹ 8,473 Mn has been converted to LOAs in Q1 FY24.
• Hydro is 60% order book
• Irrigation is 21% order book
• Tunnel – 12.5% order book
• 55% order book is central Govt projects & 41.5% is state govt
• 45% order book is below 10% completed, 26% is 10-30% completed & 18% is 30-50% completed
• The hydropower potential of India is around 1,45,000 MW and at 60% load factor, it can meet the demand of around 85, 000 MW — Around 26% of Hydropower potential has been exploited in India. Hence there is a lot of unexploited potential in this segment for expansion
• A new hydro power policy for 2018-28 has been drafted for the growth of hydro projects in the country. — In February 2022, Nepal and India agreed to form a Joint Hydro Development Committee to explore the possibility of viable hydropower projects.
• Under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) for 2021-26 there has been an outlay allocation of ₹93,068 Crore which would benefit about 22 lakh farmers.
• Debt has come down from 2261 CR TO 1752 cr
• EV/ EBITDA has come down to 3.95 times
• Mcap/ sales – 0.29
• Debt/ equity – 0.54
• Price to book value is 0.52 vs Industry 3.26
• Mcap / Networth – 0.69
• Industry PE is 28
• Land available – 2150 acres at approx. book value of 1000 cr
• Received 157 cr in arbitration awards in FY23
• 4342 CR & claims outstanding on date of which 1206 cr is in company’s favour & 1228 cr is pending with clients
• Our focus on niche segments such as hydroelectric, tunneling, and irrigation where competition is low, and margins are higher.
• CFO – 693 cr vs 514 cr FY22 VS Operating EBITDA of 625 cr
• Initiatives on technology –
We are the only Indian Company with experience in Construction of RCC Dams o Completed over 40 RCC dams across the globe o Built the first three RCC Dams in India for Ghatghar Project in Maharashtra
A unique technology for connecting water to powerhouse, to augment capacity to existing power plant o Patel Engineering is only company in Asia to do Double Lake Tap o Adopted this technology for the first time in Asia for Koyna Maharashtra o Resulted in repeat orders from clients
o Micro -tunneling is the only non invasive solution for urban areas o We are one of the largest Micro -tunneling Contractors
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