Some quick notes that I was able to scribble during AGM:
Capex:
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Increasing capacity by 1000 MVA (25% increase from current 4000 MVA). Outlay of ~10 Crs and facility will come online by March’24. With incremental capacity, max revenue potential of ~500 Crs.
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Also, market studies are going on for further bigger capex. Will be possibly initiated after current capex of 25%.
Projection for FY’24 and beyond:
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Guidance for FY’24 is ~350 Crs. Current Order book of 300 Crs. and further RFPs in pipeline. Expected to be equally split between export and domestic. Aspiration to reach a top-line of 800 Crs. – 1000 Crs in next 5 – 8 Years.
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Strong demand scenario both domestic and international markets.
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In export markets, farsightedness of obtaining certain approvals is yielding result now for certain sectors. Export shortage cannot be easily fulfilled due to approval requirement.
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Domestic: Equally strong demand. Massive reforms underway in power sector. Shift towards renewable is driving the demand. Massive infrastructre has been added and will continue the move for next 5 years. Also, cyclical capex in other sectors like Cement/Steel is driving demand. JSW buying strongly.
Q1’24 and Full Year 2023 specific snippets:
- Q1 demand was soft. Even historically Q1 has been lowest and Q4 being highest. 60% - 70% demand was for export that’s why higher margin.
Misc:
- All across demand by participants for better/frequent info dissemination by way of concall, investor presentation and business updates. Management acknowledges the need and commits for concalls post every result going forward.
Disc: Invested
Regards,
Tarun