Any current/future new fundraising through debt or equity?

For FY24, KMEW plans a capex of about INR 60 crores. This capex will be financed through a mix of internal accruals and debt raising. No current plans to raise equity for capex or other purposes; management prefers raising debt as it is cheaper than equity. The company aims to remain net debt-free by aligning existing debt facilities with specific contracts for timely repayment before contract completion. For future vessel acquisition in Bahrain, if needed, the company intends to raise debt to fund additional vessels. No mention of imminent equity fundraising; focus remains on using

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

Completed capex of approximately USD 5 million in H1 FY24, primarily for a vessel destined for Bahrain operations. Planned additional capex of around INR 60 crores (~USD 7.3 million) for the next year. This upcoming capex will be a mix of constructing three vessels for two orders and acquiring additional vessels for upcoming contracts. Funding sources for capex will be internal accruals and potential debt raising. For the Bahrain contract, initial vessel cost was about USD 5 million; additional vessels (second and third) would be similarly priced. Capex strategy involves aligning debt faciliti

Future growth expectations in sales/revenue/volumes?

Current order book stands at INR 650+ crores with a pipeline exceeding INR 1,300 crores, indicating robust future opportunities. Revenue for FY24 expected to grow higher than the previous year; exact figures to be disclosed later. EBITDA margins projected between 30% to 40% consistently going forward. Aim to capture about 10% market share in the dredging business within 3-4 years. Growth driven by expanding projects in India and international markets like Bahrain and Myanmar. Recurring business constitutes 100% of current revenue, emphasizing stability. Planned capex of about INR 60 crores foc

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

The company projects EBITDA margins between 30% to 40% going forward, maintaining strong profitability. H1 FY24 showed a 4% year-on-year increase in EBITDA margin and 3% growth in PAT, reflecting stable earnings growth. Revenue for FY24 is expected to grow higher than FY23, indicating positive future sales momentum. Strong order book of INR 650 crores with a robust bid pipeline of INR 1,300+ crores supports growth prospects. Expansion into international markets like Bahrain and Myanmar is expected to drive increased revenues and margin enhancement. The company expects steady order inflows, but

Current/ Expected Orderbook/ Pending Orders?

Current order book stands at INR 670 crores with average tenure of 3-4 years. Recent order wins include INR 573 crores, with a pipeline exceeding INR 1,300 crores as of late November 2023. In the last week before the call, an additional bid of INR 210 crores was added to the pipeline, taking it beyond INR 1,300 crores. Out of INR 1,100 crores bid pipeline mentioned earlier, approx. INR 450 crores have translated into business. Remaining orders, including Inland Waterway and sand mining projects with government, are under consideration and yet to be finalized. The company targets to convert a s

Knowledge MarineQ2 FY24Engineering Services

Knowledge Marine Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹3,094.8P/E: 60.6Market Cap: ₹7.8K CrSector: Engineering Services

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

Current order book stands at INR 650+ crores with a pipeline exceeding INR 1,300 crores, indicating robust future opportunities.
Revenue for FY24 expected to grow higher than the previous year; exact figures to be disclosed later.
EBITDA margins projected between 30% to 40% consistently going forward.
Aim to capture about 10% market share in the dredging business within 3-4 years.
Growth driven by expanding projects in India and international markets like Bahrain and Myanmar.
Recurring business constitutes 100% of current revenue, emphasizing stability.
Planned capex of about INR 60 crores focused on vessel acquisitions and construction, supporting capacity expansion.
Vessel utilization expected around 290-300 days annually, maximizing operational efficiency.
Increasing order wins from government projects and strategic bids expected to drive steady revenue scaling through FY25 and FY26.

Margin guidance

Category 3

The company projects EBITDA margins between 30% to 40% going forward, maintaining strong profitability.
H1 FY24 showed a 4% year-on-year increase in EBITDA margin and 3% growth in PAT, reflecting stable earnings growth.
Revenue for FY24 is expected to grow higher than FY23, indicating positive future sales momentum.
Strong order book of INR 650 crores with a robust bid pipeline of INR 1,300+ crores supports growth prospects.
Expansion into international markets like Bahrain and Myanmar is expected to drive increased revenues and margin enhancement.
The company expects steady order inflows, but timelines depend on government approvals.
Capital dredging has higher margins than maintenance dredging, signaling potential margin improvement as project mix changes.
Focus on recurring contracts underpins stable cash flows and earnings visibility.
The company aims to capture at least 10% market share in dredging within 3-4 years, supporting revenue growth and earnings expansion.

See what Knowledge Marine management said on margin guidance — free account, 30 seconds.

Fundraise plans

Yes

For FY24, KMEW plans a capex of about INR 60 crores.
This capex will be financed through a mix of internal accruals and debt raising.
No current plans to raise equity for capex or other purposes; management prefers raising debt as it is cheaper than equity.
The company aims to remain net debt-free by aligning existing debt facilities with specific contracts for timely repayment before contract completion.
For future vessel acquisition in Bahrain, if needed, the company intends to raise debt to fund additional vessels.
No mention of imminent equity fundraising; focus remains on using debt and internal funds for expansion.

Order book

Yes

Current order book stands at INR 670 crores with average tenure of 3-4 years.
Recent order wins include INR 573 crores, with a pipeline exceeding INR 1,300 crores as of late November 2023.
In the last week before the call, an additional bid of INR 210 crores was added to the pipeline, taking it beyond INR 1,300 crores.
Out of INR 1,100 crores bid pipeline mentioned earlier, approx. INR 450 crores have translated into business.
Remaining orders, including Inland Waterway and sand mining projects with government, are under consideration and yet to be finalized.
The company targets to convert a significant portion of this pipeline into confirmed orders but timelines depend on government approvals.
Order execution and revenue growth expected in FY24 and beyond, with steady EBITDA margins of 30-40%.

See what Knowledge Marine management said on order book — free account, 30 seconds.

Capex plans

Yes

Completed capex of approximately USD 5 million in H1 FY24, primarily for a vessel destined for Bahrain operations.
Planned additional capex of around INR 60 crores (~USD 7.3 million) for the next year.
This upcoming capex will be a mix of constructing three vessels for two orders and acquiring additional vessels for upcoming contracts.
Funding sources for capex will be internal accruals and potential debt raising.
For the Bahrain contract, initial vessel cost was about USD 5 million; additional vessels (second and third) would be similarly priced.
Capex strategy involves aligning debt facilities with specific contracts for timely repayment.
No current plans require raising equity for capex; preference is to raise debt if funding is necessary.

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What Knowledge Marine's management said in earlier quarters

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