Bondada Engineering Ltd

Q4 FY25 Earnings Call Analysis

Telecom - Services

Full Stock Analysis
fundraise: No informationcapex: Yesrevenue: Category 1margin: No informationorderbook: No information
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fundraise

Any current/future new fundraising through debt or equity?

- 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.
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capex

Any current/future capex/capital investment/strategic investment?

- 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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revenue

Future growth expectations in sales/revenue/volumes?

- 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.
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margin

Future growth expectations in earnings/operating earnings/profits/EPS?

- 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.
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orderbook

Current/ Expected Orderbook/ Pending Orders?

- 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.