Bondada Engineering Ltd Q3 FY24 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Management growth scorecard
Revenue
Category 1
Margin
N/A
Fundraise
N/A
Order
N/A
Capex
Yes
2 of 2 growth signals are positive.
Full analysisRevenue guidance
Category 1- The company reported revenue of INR 538.66 Crore in the first 9 months of FY 2023-24, showing a 157% growth compared to INR 209.33 Crore in the same period last year.
- For H1 FY 2023-24, revenue was INR 295.72 Crore, up 153% from INR 116.97 Crore in the previous year.
- The company's order book stood at INR 1695 Crore as of December 31, 2023, mostly EPC contracts deliverable in 12-18 months.
- Participating in tenders, the company is L1 in tenders worth INR 1126.80 Crore for 275 MW solar power plants including 10 years maintenance.
- Expected top-line growth from a subsidiary (Atpole Technologies) focused on BLDC motors and EV charging stations is anticipated to reach around INR 500 Crore in the next 5 years.
- The company sees substantial growth potential in LED lighting business driven by government mandates and plans to expand with smart lighting products.
See what Bondada Engineering Ltd management said on margin guidance — free account, 30 seconds.
Fundraise plans
- The transcript does not mention any current or planned fundraising activities through debt or equity.
- No specific discussions or plans related to raising capital via equity or debt instruments were shared during the investor meetings held on January 16, 2024.
- The company focused mainly on business expansions, order book status, and operational updates, without any explicit reference to fundraising.
- Therefore, based on the provided transcript, there is no indication of new fundraising through debt or equity at this time or in the near future.
See what Bondada Engineering Ltd management said on order book — free account, 30 seconds.
Capex plans
Yes- The company has acquired a 60% stake in Atpole Technologies Private Limited, specializing in BLDC motors design and manufacturing for 2/3/4 wheelers, aiming to leverage the "Make in India" initiative and reduce dependence on imports.
- It is developing Bondada Industrial Park in Hyderabad for global-standard manufacturing facilities for its subsidiaries, including ventures in uPVC profile extrusion, BLDC motors, and LED lights manufacturing.
- The company is exploring EV charging stations as part of its growth strategy.
- Expansion into LED lights manufacturing is driven by government mandates promoting energy-efficient LED lighting, supported by the PSU Energy Efficiency Services Limited (EESL).
- Strategic investments focus on expanding product portfolios, entering smart lighting, and capitalizing on large untapped markets in India.
- Topline from these investments (Atpole Technologies) is anticipated to reach INR 500 Crore in the next 5 years.
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Margin guidance
- The company anticipates significant growth from its subsidiary Atpole Technologies Private Limited, targeting a topline of around INR 500 Crore in the next 5 years, primarily from BLDC motors design and manufacturing for electric vehicles.
- The LED lights business is expected to contribute substantially due to government mandates to transition industrial and street lighting to power-saving LED solutions, enhancing business opportunities and profit margins.
- The company reported a strong revenue growth of 157% in the first 9 months of FY 2023-24 (INR 538.66 Crore vs. INR 209.33 Crore last year).
- H1 revenue for FY 2023-24 showed 153% growth compared to previous year (INR 295.72 Crore vs. INR 116.97 Crore).
- No explicit future EPS or operating profit figures shared, but the diversification into high-growth sectors like EV motors and LED lighting signals potential improvement in earnings.
Order book
- As of 31st December 2023, Bondada Engineering Limited's closing order book stands at INR 1695 Crore.
- The majority of the order book consists of EPC contracts, expected to be executed within the next 12 to 18 months.
- The company is L1 in two tenders worth INR 1126.80 Crore from a PSU for solar power plants (275 MW), including EPC and 10-year maintenance.
- Awaiting a 120 MW solar power plant order from KPI Green Energy Limited on a full EPC basis.
- Participated in a tender by NLC India Limited for a 70 MW solar power plant on BOP basis; technical and financial bids are pending opening.
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