Top Tweets for #ParthElectricalsEngineering

9 days ago

#SME #PARTH #ParthElectricals #ParthElectricalsEngineering Parth Electricals & Engineering H1 FY27 Concall Highlights: 👉H1 FY27 & Future Outlook : ▫️H1 FY27 results: total income ₹116.40 Cr (+43.5% YoY); revenue from operations ₹114.19 Cr (+42% YoY) 💠EBITDA ₹14.88 Cr (+42.4% YoY), margin 12.78% 💠PAT ₹9.10 Cr (+49.2% YoY) vs ₹6.10 Cr; PAT margin 7.82% 💠Other income ₹2.21 Cr ▫️Margin drivers: Gross margin up 444 bps to 33.25% on better mix and lower material cost share 💠Employee cost flat at ₹6.97 Cr 💠Other expenses ₹16.84 Cr vs ₹5.79 Cr, mainly sub-contracting at ₹11.94 Cr vs ₹2.61 Cr, as service and EPC revenue grew faster 💠EBITDA margin stayed at 12.78% ▫️Growth outlook: Minimum 30%+ revenue CAGR over the medium term; 30-40% CAGR over the next two years 💠Immediate mid-term revenue target of almost ₹500 Cr 💠Order book and ₹300 Cr+ pipeline give revenue visibility for next financial year ▫️Margin outlook: EBITDA margin target of 12% to 15% 💠PAT margin to improve ~100 bps every year, from ~8% to 10-11% over the next 2-3 years 💠PAT margin could reach 12% with the right product and service mix 💠Drivers: GIS and other technology-driven products, exports, engineering consultancy services ▫️Product vs EPC mix: focus is on manufacturing and technology-driven products 💠EPC orders were taken to push RMUs and compact substations 💠Existing EPC orders get executed over the next 12 months; going ahead supply orders will dominate 💠Value-added EPCs such as GIS substations to continue; these are targeted at more than 10% PAT ▫️Client mix: more focus on direct B2B / industrial projects 💠Payments come mostly within 30 days, including advances 💠In utility PSU projects, bank guarantees block funds, and payment is ~70-80% against supply in 30-45 days, followed by installation and handover ▫️Working capital: operating cash flow was -₹6.45 Cr as ₹16.67 Cr went into working capital 💠Inventory built in September for the Reliance data centre project (execution October-December) 💠September billing of ₹25.63 Cr, the highest month, is collectible by 15 November 💠Cash conversion cycle 92 days; expected to come down in H2 💠Operating cash flow targeted to turn positive before the year ends 👉Order book / projects and pipeline: ▫️Order book: ₹470 Cr, to be executed over the next 12-15 months 💠Manufacturing ₹228.67 Cr (48.7%) 💠Service ₹120.79 Cr (25.7%) 💠EPC ₹120.14 Cr (25.6%) 💠Bid pipeline above ₹300 Cr ▫️Order book details: 💠Manufacturing: 2000+ RMUs, 100+ compact / package substations, 100+ MV switchgear panels (11kV), 200+ earth link boxes 💠Kandla Port 66kV/11kV GIS substation project ₹48 Cr 💠66kV underground cable projects for GETCO (EPC and ARC services) ₹135 Cr 💠11kV RDSS project for PGVCL and DGVCL, including RMUs and compact substations ▫️Karachiya, Vadodara GIS plant: 💠Facility complete; inauguration this month (November 2026), date to be announced to the exchange 💠Initial range: 11kV, 22kV and 33kV GIS plus 33kV RMU 💠Can add ₹150 Cr of sales revenue 💠Final type testing of 33kV GIS and RMU in progress (50% complete) 💠Quoting to private industries and renewable players; bidding for utility and industrial tenders in the coming weeks ▫️Khordha, Odisha: 💠First rental unit operational; initial orders under execution; state utility approvals in process 💠Second unit of 60,000 sq ft under construction; completion by March 2027, fully operational by June 2027 💠RMUs for Tata Power planned for execution from Odisha (trial assembly and testing in progress) 💠Peak product revenue of ~₹100 Cr from Odisha when fully operational ▫️Capex: 💠₹19.77 Cr in H1 FY27; cumulative ₹28.43 Cr (Karachiya ₹21.79 Cr, Khordha ₹6.64 Cr) 💠Funded; no additional fundraise planned for the immediate year 💠Expansion of GIS to high voltage (66kV, 132kV, 220kV) planned from H2 FY28 or later, with possible fundraise then ▫️Peak product revenue potential: 💠Existing facility ₹150 Cr + new facility ₹150 Cr = ₹300 Cr 💠With Odisha, ₹400-450 Cr 💠Baroda alone ₹300-350 Cr ▫️Data centre (Vertiv Energy, Reliance Jio AI Factory, Jamnagar): 💠Order value ₹47.6 Cr including ₹1.6 Cr amendment; MV block for 80 MW 💠Delivery on time; completion by December 2026 💠Targeting at least 10% PAT on this project 💠MV block has ~50% value addition from Parth 💠Parth is executing ahead of Schneider on the parallel Reliance project 💠Addressable ₹150 Cr for 80 MW (~₹2 Cr per MW) 💠India data centre capacity expected to go from 1.5 GW to 6.5 GW, a ~₹10,000 Cr addressable market for Parth ▫️USA exports: 💠iMCC project 100% executed; all payments realised 💠Extra work done on the project is awaiting order amendment; benefit expected in H2 💠New order of $0.45 Mn for UL-certified medium voltage switchgear; delivery by January-February 2027 💠First US project closed at 6-7% PAT; US projects now targeted at 12-15% PAT 💠AKJ (US entity) to be the front-end sales company for Parth UL products ▫️South Korea: 💠First trial order for 33kV RMU for a green hydrogen facility (KraftPower), delivery in November 💠First order from the new product line ▫️Takalkar Power Engineers & Consultants acquisition: 💠100% stake for ₹6.00 Cr, all cash: ₹4.98 Cr upfront, ₹1.02 Cr deferred 💠Board approval on 29 October 2026; completion expected within ~1 month, subject to exchange approval 💠Engineering design and advisory for networks from 11kV up to 765kV 💠FY26 turnover ₹6.04 Cr (FY25: ₹4.13 Cr); net worth ₹2.47 Cr 💠Rationale: HV and EHV design depth, GIS development up to 220kV, cross-selling, new geographies ▫️Skill Development Centre: 💠Fully functional; first batch of 25 engineers and technicians training for Odisha 💠Second batch of 30 recruited for Vadodara GIS plant 💠50 more engineers and technicians to be recruited over the next six months 👉Q&A : ▫️AIS panels: 💠Schneider has allowed Parth to sell directly in the market 💠Own AIS panel with Schneider vacuum circuit breaker is under type testing; bidding has started 💠After testing, private utilities such as Tata Power, Torrent and Adani are targeted 💠The 100+ MV panels under execution are Schneider white-labelling work; own-brand growth possible from H2 ▫️Data centre margins: 💠Margins expected to be better than other industries 💠Customers prioritise quality and after-sales service, with service level agreements expected 💠Parth positions itself in the first tier with Schneider and ABB ▫️Aspiration: 💠Be among the top four in engineering design and technology-driven solutions 💠In products, aim to be above CG 💠With high voltage GIS, compete with Hyosung, Toshiba, Siemens, Hitachi, GE and BHEL ▫️MV block for data centre: 💠33kV switchgear was sourced from another manufacturer for this project 💠Parth's own 22kV / 33kV switchgear and LV switchgear can be pushed in future projects 💠Transformers are a bought-out item ▫️Funding for growth: 💠ICICI Bank sanctioned an additional ₹50 Cr facility; ₹20-30 Cr available from October 💠Canara Bank limits expected to be renewed as additional limits with no extra collateral 💠30-40% growth to be funded from these two banks' facilities 👉 Others : ▫️Balance sheet: net worth ₹131.74 Cr; debt / equity 0.14×; no long-term debt 💠Current ratio 1.89× 💠ROE 13.8%, ROCE 18% (annualised) ▫️Cash flow and capital raised: 💠₹11.18 Cr raised in H1 FY27 through preferential issue of 3,00,000 equity shares and 1,00,000 warrants (25% upfront) at ₹344 each 💠Working capital cycle: receivable days 94, inventory days 107, payable days 109 ▫️Related party (AKJ): established two years ago; its front-end sales led to the first US project 💠Components for the UL-certified project were bought via AKJ at better pricing 💠Going forward AKJ will sell Parth products in the US

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