Power Mech Projects (POWERMECH) Q2 24/25 earnings summary

Executive summary

• Order intake target for FY 2025 is INR 12,000 crores, with INR 3,100 crores secured as of September 2024, and a total order backlog exceeding INR 58,000 crores.

• Diversified presence in power, infrastructure, mining, water, railways, roads, and metro segments, with a strong focus on O&M and MDO contracts for long-term, sustainable revenue.

• Significant progress in mining operations, with both MDO projects advancing and first coal production expected soon.

• Professional management team with deep industry experience and a skilled workforce of over 10,000 employees.

• Consolidated revenue from operations for Q2 FY25 was ₹1,035.49 Cr, up from ₹932.49 Cr in Q2 FY24, reflecting strong year-over-year growth.

Financial highlights

• Q2 FY25 total income was INR 2,425 crores, up 12% year-on-year; EBITDA at INR 134 crores (12.78% margin); PAT at INR 67 crores (6.43% margin).

• H1 FY25 total income was INR 2,062 crores (+14% YoY); EBITDA INR 257 crores (+15% YoY); PAT INR 127 crores (+24% YoY).

• FY24 revenue reached Rs. 4,234 Cr, up from Rs. 3,618 Cr in FY23, representing a 17% year-over-year increase.

• O&M revenues grew 44% YoY in Q2 and 40% YoY in H1; mining business contributed INR 12 crores in Q2 and INR 26 crores in H1.

• EPS for Q2 FY25 was 42.43, up from 34.40 in Q2 FY24.

Outlook and guidance

• Revenue growth guidance for FY 2025 is 25%-30%, targeting INR 5,500 crores including coal MDO numbers.

• Focus on expanding O&M and MDO businesses, targeting higher-margin, long-term contracts.

• Strategic diversification into non-power sectors and international markets to drive future growth.

• Peak annual recurring revenue from mining operations expected at INR 2,100 crores from FY 2028 for 23 years.

• High confidence in achieving guidance due to strong order book and project execution pipeline.