Summary of PIGL Q2 FY25 Earnings Conference Call
Date: November 19, 2024
Participants:
Managing Director: Mr. Padmaraj Pillai
CFO: Mr. Rohit Maheshwari
Moderator: Mr. Ganesh Nalawade
- Company Overview:
Established: 1975, PIGL has positioned itself as a leading player in electrical contracting and equipment.
Core Services: Comprehensive Electrical Procurement and Construction (EPC) solutions, including substations, transformers, power distribution, lighting systems, and building management systems.
Clientele: Public and private sectors across industries, including government bodies, healthcare, and airports.
Geographical Presence: Active across India, with strong footprints in Rajasthan, Jharkhand, Himachal Pradesh, and Assam.
- Financial Highlights (Q2 & H1 FY25):
Q2 FY25:
Total Income: ₹55.75 crores (YoY growth: 127.34%).
EBITDA: ₹6.04 crores (YoY growth: 108.86%, Margin: 10.3%).
Net Profit: ₹3.89 crores (YoY growth: 180.11%, Margin: 6.98%).
EPS: ₹2.69 (YoY growth: 146.79%).
H1 FY25:
Total Income: ₹81.74 crores (YoY growth: 75.34%).
EBITDA: ₹9.69 crores (YoY growth: 73.45%, Margin: 11.86%).
Net Profit: ₹5.76 crores (YoY growth: 140.72%).
EPS: ₹3.99 (YoY growth: 110%).
- Strategic Updates:
Acquisition: Controlling stake in Peter Electrical Company Ltd to strengthen manufacturing for electrical panels and substations.
Key Contracts:
₹28.41 crores under the Mukhya Mantri Ujjwal Jharkhand Yojana for rural electrification.
Airport projects with Adani Group and Airports Authority of India.
Order Book:
Current: ₹350 crores with an additional ₹300 crores in bidding pipeline.
- Market Opportunities:
Sector Growth: Driven by government schemes like RDSS, Saubhagya, and PM-Surya Ghar Muft Bijli Yojana, PIGL is leveraging these opportunities.
Renewable Energy: Entry into solar EPC and Battery Energy Storage Systems (BESS), identified as key growth drivers.
- Operational Insights:
Efficiency Improvements: Focus on reducing finance costs through effective cash management and leveraging R&D for innovation.
Geographical Expansion: Strengthening presence in Eastern and Northern India, including states like Himachal Pradesh and Jharkhand.
Challenges: Minimal operational challenges; projects are progressing smoothly.
- Outlook and Growth Plans:
H2 FY25: Anticipated sustained growth with 50% YoY revenue growth target.
FY26 Goals: Aiming for 50% growth and EBITDA margin expansion by 2-3%.
Long-Term Vision: Exploring global markets and expanding into the generation segment of the energy sector.
- Key Takeaways from Q&A:
Demand Trends: Robust government spending in transmission and distribution projected at ₹30-35 lakh crores over five years.
Smart Grids: Plans to explore opportunities post-government clarity on smart metering.
BESS Focus: PIGL aims to provide complete turnkey solutions for battery storage projects.
Conclusion: PIGL’s strong financial performance, strategic acquisitions, and focus on expanding services across renewable energy and smart grids position the company for sustained growth. The management remains optimistic about leveraging government initiatives and industry trends to achieve its ambitious targets
Disc: Not currently invested. Studying the power & transmission sector. Might add it in future as per valuation.