Any current/future new fundraising through debt or equity?

The company is not planning any CAPEX at the moment, indicating no immediate requirement for new funds. There is no mention of any current or upcoming debt fundraising. The company’s current debt mainly consists of working capital exposure of about Rs. 140 crores with no long-term debt. Debt-to-equity ratio as of 30.09.2018 is 0.72. The company is actively bidding for new government tenders worth around Rs. 300 crores, with project execution expected over the next few months. No explicit statement regarding plans for equity fundraising or issuing new shares is provided in the call. Overall, no

Future growth expectations in sales/revenue/volumes?

Expected volume growth in the next financial year is around 10% to 15%, based on the current order book. Company anticipates sales tonnage to increase from approx. 65,000-70,000 tons currently to higher levels next year. Telecom sector is poised for significant expansion, especially with 5G rollout, potentially creating more work than in the past 25 years combined. Reliance Jio and Vodafone-Idea expected to increase infrastructure spending substantially, supporting sales growth. Order book of around Rs. 400 crores with potential new orders (~Rs. 300 crores) in pipeline in government transmissi

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

Volume Growth: Salasar Techno expects a 10-15% growth in tonnage next year, supported by a strong order book including telecom and EPC projects. EBITDA Margins: The company aims to maintain healthy EBITDA margins around 10.9% to 11%, with potential upside in higher-margin projects. Revenue Growth: Nine months FY19 revenue grew 34% YoY; continued demand across telecom and transmission sectors suggests sustained growth. Telecom Sector Outlook: Strong growth anticipated due to investments in 4G/5G infrastructure; Reliance Jio and Vodafone-Idea's heavy infrastructure spend bode well. Worki

Current/ Expected Orderbook/ Pending Orders?

Telecom pending order book: - Reliance: ₹150 crores to be completed by mid next quarter (Q1) - Other telecom operators: ₹70-80 crores expected over next 3-6 months - Total telecom revenue booking: ~₹200 crores in next 4-5 months Non-telecom (Power, Railways, EPC) order book: - Executable order book: ₹265 crores - Projects in Haryana: Two projects of ₹36.5 crores each (₹73 crores total), work started - Jharkhand project: ₹52 crores, work started early January - Himachal project: ₹43 crores ongoing - PVVNL project: Pending ₹10.89 crores old issue; revenue booking of ₹65 crores e

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Salasar Techno Engineering LtdQ4 FY20Industrial Manufacturing

Salasar Techno Engineering Ltd Q4 FY20 Earnings Call Analysis

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

No CAPEX planned at the moment for the next year. The company is not currently investing in capital expenditure. Focus remains on bidding for new projects rather than capital investments. Order book of almost Rs. 400 crores is being managed to balance manufacturing capacity and working capital. Potential projects worth about Rs. 300 crores are in the pipeline with bid results expected in 2-3 months. Telecom sector largely consists of private players, so bidding is focused on government tenders like transmission and railways, not telecom. Overall, Salasar Techno Engineering Limited

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

Price: ₹6.17P/E: 64.6Market Cap: ₹1.3K CrSector: Industrial Manufacturing

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Expected volume growth in the next financial year is around 10% to 15%, based on the current order book.
→Company anticipates sales tonnage to increase from approx. 65,000-70,000 tons currently to higher levels next year.
→Telecom sector is poised for significant expansion, especially with 5G rollout, potentially creating more work than in the past 25 years combined.
→Reliance Jio and Vodafone-Idea expected to increase infrastructure spending substantially, supporting sales growth.
→Order book of around Rs. 400 crores with potential new orders (~Rs. 300 crores) in pipeline in government transmission and railway sectors.
→Executable telecom order book of approx. Rs. 150 crores from Reliance and Rs. 70-80 crores from other operators expected to contribute revenues over next few quarters.
→The mix of telecom and transmission segments will be optimized to sustain growth and maintain operational efficiency.

Margin guidance

Category 3

→Volume Growth: Salasar Techno expects a 10-15% growth in tonnage next year, supported by a strong order book including telecom and EPC projects.
→EBITDA Margins: The company aims to maintain healthy EBITDA margins around 10.9% to 11%, with potential upside in higher-margin projects.
→Revenue Growth: Nine months FY19 revenue grew 34% YoY; continued demand across telecom and transmission sectors suggests sustained growth.
→Telecom Sector Outlook: Strong growth anticipated due to investments in 4G/5G infrastructure; Reliance Jio and Vodafone-Idea's heavy infrastructure spend bode well.
→Working Capital Management: Focus on controlling working capital exposure in transmission projects to protect margins and finance cost.
→Net Profit & EPS: Nine months FY19 PAT grew 15% YoY; with volume and margin expansion, profits and EPS expected to improve in the coming years.
→Capex: No significant capex planned, supporting cash flow and profitability.

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Fundraise plans

→The company is not planning any CAPEX at the moment, indicating no immediate requirement for new funds.
→There is no mention of any current or upcoming debt fundraising.
→The company’s current debt mainly consists of working capital exposure of about Rs. 140 crores with no long-term debt.
→Debt-to-equity ratio as of 30.09.2018 is 0.72.
→The company is actively bidding for new government tenders worth around Rs. 300 crores, with project execution expected over the next few months.
→No explicit statement regarding plans for equity fundraising or issuing new shares is provided in the call.
→Overall, no specific plans for new fundraising through debt or equity have been disclosed in this period.

Order book

Yes

→Telecom pending order book:
→ - Reliance: ₹150 crores to be completed by mid next quarter (Q1)
→ - Other telecom operators: ₹70-80 crores expected over next 3-6 months
→ - Total telecom revenue booking: ~₹200 crores in next 4-5 months
→Non-telecom (Power, Railways, EPC) order book:
→ - Executable order book: ₹265 crores
→ - Projects in Haryana: Two projects of ₹36.5 crores each (₹73 crores total), work started
→ - Jharkhand project: ₹52 crores, work started early January
→ - Himachal project: ₹43 crores ongoing
→ - PVVNL project: Pending ₹10.89 crores old issue; revenue booking of ₹65 crores expected over 3-4 months
→ - Gujarat JV project: Total ₹89 crores; revenue share to Salasar ₹40 crores
→Pipeline:
→ - Bids worth ₹300 crores in government projects, results expected in 2-3 months
→Total order book: Approximately ₹400 crores currently active.

Capex plans

- No CAPEX planned at the moment for the next year. - The company is not currently investing in capital expenditure. - Focus remains on bidding for new projects rather than capital investments. - Order book of almost Rs. 400 crores is being managed to balance manufacturing capacity and working capital. - Potential projects worth about Rs. 300 crores are in the pipeline with bid results expected in 2-3 months. - Telecom sector largely consists of private players, so bidding is focused on government tenders like transmission and railways, not telecom. Overall, Salasar Techno Engineering Limited is concentrating on order execution and balancing working capital rather than expanding through CAPEX or strategic investments in the near term.

How does Salasar Techno Engineering Ltd rank vs peers in Industrial Manufacturing?

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