Power Mech Projects Ltd

- The company is currently managing with existing fund limits of around Rs.500 crores in working capital and equipment loans, with around 75%-80% utilization. - No immediate plans to raise additional debt as they are managing growth through mobilization advances and internal accruals. - Banks are willing to fund up to 25% of projected turnover, meaning potentially Rs.500-600 crores additional debt can be raised if needed, based on good financial ratings and projections. - Rs.240 crores of capex funds have been raised through QIP (equity) for the washery project; remaining Rs.450 crores is planned to be raised via loans at the company level. - At SPV level, capex for mining equipment is being funded through internal accruals and loans as required; no major capex currently ongoing at SPV. - Overall, the company prefers low debt and is focusing on controlled capex spending without major new fundraising announcements.

- Approximate total capex of Rs. 690 crores planned for the washery (mining business) by FY26. - Rs. 240 crores of capex funded through QIP; balance Rs. 450 crores to be raised as loans at Power Mech level. - Additional funds being raised at SPV level for Heavy Earth Moving Machinery (HEMM) and other plant requirements; machinery already procured. - No major capex planned at SPV level currently; funding mainly through internal accruals and loans based on site requirements. - Company managing working capital efficiently; current fund limits around Rs. 500 crores with about 75%-80% utilization. - Not planning to raise significant new debts beyond current limits; banks ready to fund up to 25% of projected turnover. - Future growth mainly driven by ongoing projects and organic capacity expansion rather than large-scale new capex beyond mining washery.

- FY24 revenue guidance: Rs.4,500 crores to Rs.4,700 crores, pending traction in FGD and MDO business. - FY25 growth target: 30% to 35% year-on-year growth in revenue, including FGD and mining businesses. - Order book strong at around Rs.17,000 crores, with expected annual execution of about one-third (~33%). - Anticipated order inflows of Rs.2,000-3,000 crores more in FY24, supporting growth. - MDO business expected to ramp up significantly over the next 2 years, contributing ~7% of business by FY25. - O&M business witnessing significant growth, with Rs.2,000 crores O&M orders already booked and expected to continue. - Sectoral opportunities robust: 27,000 MW power projects under implementation and large opportunities in railways, water, and infrastructure. - Expect to achieve around Rs.6,000 crores top line in FY25, driven by EPC, O&M, and MDO segments.

- FY24 revenue guidance: Rs.4,500 - 4,700 crores, with EBITDA margins stable as Q3. - FY25 expected revenue growth: 30% to 35% year-on-year, inclusive of EPC, FGD, and mining businesses. - Margins expected to remain stable or see a slight increase depending on the FGD/mining mix. - Order book robust (~Rs.17,000 crores) with comfortable execution capacity supporting growth. - Conversion rate from order book to revenue projected around 32% to 33%. - MDO and O&M businesses anticipated to drive substantial growth and improve margins by FY26. - EBITDA grew 34% YoY and PAT up 22% YoY in first 9 months of FY24; this trajectory is expected to continue. - Operating leverage expected as revenue scales with sustained order inflows and execution.

- Current order backlog (excluding MDO): Rs.17,595 crores (as of Feb 2024). - Overall order backlog including MDO: Rs.57,328 crores. - Civil business backlog: Rs.8,500 crores. - Erection segment backlog: Rs.7,500 crores. - Orders received in Q3 include: - Ghatampur Thermal Power project: Rs.263.57 crores - Meenakshi Energy: Rs.675 crores - Dariba, Udaipur (Hindustan Zinc): Rs.229.2 crores - L1 status orders: approximately Rs.1,900 crores (including Rs.970 crores FGD and Rs.600 crores irrigation project). - Additional bids submitted: Rs.5,500 crores out of Rs.15,000 crores immediate opportunity. - Targeted new order inflow for FY24: Rs.10,000 crores (6,768 crores received till now plus expected additions). - Order execution cycles average 30-42 months. - Order book conversion to turnover typically around 32-33% annually.