Thanks. this was their in Q4FY18 concall too. I hope they will give clear bifurcation in next AR.
What I have observed is all infra EPC companies have a similar kind of financial cost structure and this is as per Ind AS as well.
While these numbers are essential as they eat a major part of the EBITDA.
However forecasting it or extrapolating one quarters number for the full year is also not feasible as Most of the costs are often impacted by timing of tenders.
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In the recent con-call they have mentioned that finance cost as a % of sales on full year basis, they try to keep it down as compared to the previous year. So one quarter interest movement is not something to focus on as per them. Last year i.e FY23, it was north of 5%. This year they are targeting b/w 4% to 4.5%
Here are the key trackables as per my analysis of the recent con-calls:-
- The company expects margin improvement in the polymer business as volumes increase.
- The company is positive about its future outlook and expects a revenue growth of over 25% CAGR for the next three years.
- The company aims to reduce debt and improve its margin profile.
- The company’s capex plan for the year is Rs.75 Crores. (As per Aug-23 concall)
- The order book stood at Rs.5372 Crores, the highest ever in the company’s history. (As at Aug-23)
- The company secured new orders worth Rs.1215 Crores in Q1 FY2024, registering a year-on-year growth of 200%.
- Engineering segment guidance is 12% OPM and polymer segment is in double digits going ahead (As per the CNBC interview on 8th Nov 2023)
- Finance cost as a % of sales will come down each year. That is what the management is targeting. Last year in Sept 2022 it was north of 5%, this year it is 4.5%. hence the debt level should be looked at from this lens.
- Order book is executable over 15 to 24 months
Growth Drivers:-
- The domestic T&D environment is showing signs of a strong rebound.
- Skipper is leveraging the China plus one trend and witnessing a surge in global enquiries.
3.The company expects good traction in the international transmission line market.
Disc: Invested
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Management has reiterated 25%+ CAGR for next 3 years.
Can we see Skipper at about 7000-8000cr revenue by 2026-27??
Does anyone expect 10x EPS growth and if yes by when?
Marquee investor Ajay Upadhyay has a nack for picking winners early on.
Invested.
reiterated where? in an interview? if yes can you please provide link
@Darshan_Gala read last Q earnings call / go through the PPT. Available on their site / Screener.
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** Skipper optimistic on H2 FY24 show, actively pursuing Rs 12,600 crore worth projects**
Would you please share major takeaways from the scuttlebutt ?
Thanks
Some takeaways that I am permitted to share.
- Order execution in full flow
- Logistics booking being initiated for deliveries
- Weight counted in over lac-MT+++++……
- Bidding ongoing for new tenders Dom & Exp
- New orders in pipeline may be disclosed soon
- H2 may be better than guided/expected
For me, it’s my highest allocation already.
Invested, bullish, not biased.
Please DYOR before investing. Do consult financial experts.
Ps: if my thesis is proven wrong, I have no qualms in accepting, learning, and exiting the company. I invest on management depth, market leadership, sector growth & demand, etc. My holding periods a long, and I’m alright with drawdowns, as long as corporate & business hygiene is intact. NOT an expert, just a dreamer
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promoter holds upwards of 70%
they will grow 25% and WC needs will arise : rights issue was mentioned in last concall too.
dilute if needed i would say. after 2013 this is the first Corporate Action. so after 11 years of not diluting it ought to be a good time i would say as environment is ripe for growth
6000Cr order book speaks volume. Will monitor commentary and bse filing for triggers. Niche play on a sector which has structural tailwinds for atleast 3-4Y
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Good commentary.
Is the rights issue applied directly via the broker app?
Yes, Sir Ashish Kacholia
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Skipper Ltd
Established in 1981,Skipper Ltd. has today evolved into one of the world’s leading manufacturers for Transmission & Distribution Structures(Towers & Poles) in it’s Engineering Products segment, a leading and respected brand in the Polymer sector as well as trusted partner for executing critical Infrastructure EPC projects. Skipper’s market reach spans across 40+ countries around the globe from South America, Europe, Africa,the Middle East, South and Southeast Asia and Australia. Within India, we are a preferred manufacturer of choice for our customers pan India, from J&K to Tamil Nadu and from North East India to Gujarat.
Product Segments
- Engineering
- Infrastructure
- Polymer
Engineering
- Transmission Towers
- Telecom Towers
- Poles
- Fastners & tower accessories
- Hot Rolled Structure
- Railway Electrification Structures
With a history of almost 35 years in manufacturing a vast range of valued added Engineering products, Skipper Limited is today not just among India’s largest Power Transmission & Distribution (T&D) structure manufacturing companies but also amongst the top 10 largest manufacturers Globally. With an installed T&D Structure capacity of over 265,000 MTPA, Skipper has the unique advantage of producing 100% of its prime raw material - Mild Steel & High Tensile Angles in-house. Skipper is a complete integrated player offering our customers the advantage of sourcing Towers, Fasteners, Accessories as well as EPC construction from the same company. We are also a leading exporter of T&D Structures, with export footprints in 25 countries across South America, Europe, Africa, the Middle East, Southeast Asia and Australia.
T&D Structures are highly critical for manufacturing because almost every project has its own unique design for structures and products are 100% made-to-order only. This throws up immense Engineering and Supply Chain challenges before Manufacturing can commence. Some projects require as many as 50 different types of structures with as many as 10,000 Unique parts. At Skipper, we understand these unique requirements of each project and our dedicated team of Project Managers and Co-ordinators through a high involved level of planning, ensure that 100% of customer requirements are met on time, every time.
Design & Manufacturing Facility:
Skipper Limited has 4 state-of-the-art PGCIL approved manufacturing units in Uluberia and Junglepore, near Kolkata in West Bengal, India. All units are ISO 9001, ISO 18001 and ISO 14000 certified. We follow best practices for ensuring the Health & Safety of our workers. Also, strict adherence to Environment and Pollution norms is an established company practice.
Infrastructure
- EPC
- HDD
- Castings
- Test station & R&D Centers
Skipper Limited is engaged in manufacturing of all kinds of Power Transmission line Towers, Monopoles, Telecommunication Towers and Railway Infrastructure Structures.
The company is also engaged in EPC Projects in Power Transmission & Distribution, Telecom infra and Railway Structures in various parts of the country along with other geographies. It has got specialized teams for live line works,Retro fitting works,Power Evacuation solutions. It has expert teams for Project management services, Inspection Services, Construction management, Restoration works and live line stringing. Within a very short span of time SKipper Limited has footprint in more than 40 + Countries. With continuous efficient pre & Post Sales-Services,Skipper establishes itself as a long-term partner across all major leading Infrastructure companies. We study the clients requirements sharply to understand the specifications and technical & documentation requirements of different countries and fulfill their requirements with utmost quality, quantity, and in time.
Polymer
We make PVC pipes using the most modern and state-of-the-art extrusion machines and processes that ensure consistent quality, long lasting and tough strength pipes. The ingredients and additives used are acquired using stringent quality control. The pipes are extruded and tested to meet industry-standards for durability and endurance.
Despite being a late entrant Skipper Pipes is the fastest growing Polymer Pipes & Fittings Company in India. Our strong product portfolio of pipes, including CPVC pipes and SWR pipes makes us a major player across rural agricultural and urban plumbing segments.
Industries Served
- Plumbing
- Sewage
- Borewell
- Agriculture
Products
- UPVC Pipes & Fittings
- CPVC Pipes & Fittings
- SWR Pipes & Fittings
- Rigid Pipes & Fittings
- Casting Pipes
- Column Pipes
- Ribbed Strainer Pipes
Q3 - FY24
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Skipper Limited registered its best ever revenue quarter of Rs.772 Crores, with a growth of 57% compared to the previous year’s quarter.
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Engineering segment revenue increased by 57% to Rs.595 Crores, polymer segment revenue increased by 58% to Rs.112 Crores, and infra segment revenue increased by 490% to Rs.64.2 Crores.
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Engineering export sales accounted for 35% of overall engineering segment revenue.
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Skipper’s polymer business achieved its best ever half revenue performance, with revenue increasing by 51% to Rs.240 Crores.
Order Book and New Orders:
- The company secured new orders in excess of Rs.2,744 Crores during the year, with the current order book standing at Rs.6,074 Crores, the highest ever in the company’s history.
Market Outlook and Opportunities:
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The domestic T&D environment is showing signs of a strong rebound, and the company is committed to leveraging the potential of India’s transmission sector.
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Skipper is witnessing a surge in global inquiries and is benefiting from the China plus one trend.
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The company expects good traction in the international transmission line market and plans to tap into emerging opportunities in sectors aligned with the government’s interests.
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The domestic transmission tower market is expected to see robust demand, driven by government initiatives for renewable energy generation.
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The company expects to target higher margin orders in the future.
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Skipper expects to see continued growth in the polymer segment, with a similar growth rate expected in the second half of the year.
Recent Scuttlebutt - December 2023
- Order execution in full flow
- Logistics booking being initiated for deliveries
- Weight counted in over lac-MT+++++……
- Bidding ongoing for new tenders Dom & Exp
- New orders in pipeline may be disclosed soon
- H2 may be better than guided/expected
There is a 2.5lakh CR budget for the new RE grid to generate power. For every rupee invested in generation an equal rupee needs to be invested in transmission & distribution. Skipper suggests it’s a 1:1 ratio, but some other literature I’d read suggests it may be a 1:0.5-0.75 ratio. Even if we consider the lower end at 1:0.5 – that’s still a massive budget to yet to be spent on transmission & distribution ~ where Skipper is the market leader.
Above is only domestic and only related to the RE grid. There are other domestic needs as well.
There is an uptick in international demand as well, again, where Skipper is one of the leading players and world’s only Integrated T&D company having its own Structure rolling, manufacturing, Tower Load Testing Station & Transmission Line EPC
Their polymer business is rapidly growing and their appointment of MS Dhoni as the brand ambassador is rewarding them handsomely.
Guidance
Management is very confident of 25% CAGR for the next 3 years. In fact, in recent interviews the MD has hinted at better than guidance numbers looking feasible
Market cap is 2900CR, order book is 6000+ CR, bidding pipeline is 12,000++CR.
Fund Raise
- Recent entry by the genius, Ajay Upadhyay starting June 2023. Currently holds 1.46% basis public data
- Recent Intimation of a 1-on-1 meeting with Ashish Kacholia
- Upcoming raise of 199 CR via rights issue
PR
Over the past 4 weeks, those tracking may have noticed a lot of PR activity. Lots of interviews, articles, coverage by news channels, money control etc. Also 3rd year in a row ‘great place to work’ certified, plus sponsoring of a local marathon. The company is making noise for all the right reasons.
Heavily Invested
Around 10% of my net worth is in Skipper Ltd. I plan to hang on tight for the next 3-5 years*
I expect the T&D business to outperform and surprise everyone. I also expect their rapidly growing Polymer sector to continue excessive growth.
Am actively tracking every update. I will update this thread with the latest announcements, updates, and further scuttlebutt based information.
*Disclaimer: I invest on management depth, market leadership, sector growth & demand. My holding periods are long, and I’m alright with drawdowns, as long as corporate & business hygiene is intact. NOT an expert, just a dreamer
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Hello Suru, I recently observed a new thread around this business . A lot of positive points which is just before a new capital raise. Are you still holding or tracking? Can Anyone provide new update .