Sanghvi MoversQ1 FY27
Sanghvi Movers Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹452P/E: 20.3Market Cap: ₹4.2K CrSector: Commercial Services & Supplies
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
3 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- →FY'27 consolidated revenue guidance: Rs. 1,400 to Rs. 1,500 crores (Page 7)
- →Expected revenue growth of approximately 15% within FY'27 driven by Rs. 560 crores of CAPEX deployment (Page 7)
- →Sustained business momentum from a strong inquiry pipeline of nearly Rs. 5,600 crores across sectors (Page 6)
- →The E&C (Engineering & Construction) segment expects order book and revenue to double annually for three consecutive years (Page 12)
- →Order book for the group stands at approx. Rs. 1,250 crores fully executable within FY'27, supporting strong revenue visibility (Page 6)
- →Group revenue projected to scale between 30% to 40%, and EBITDA to grow 20% to 30% in FY'28 (Page 12)
- →Middle East business pipeline of $38 million over 0-24 months contributing to international growth (Page 7)
- →Growth dependent on execution ability and timely conversion of inquiry pipeline to orders and revenue (Pages 6, 12)
Margin guidance
Category 3- →Consolidated revenue for FY'27 projected at Rs. 1,400-1,500 crores, reflecting strong growth momentum.
- →EBITDA guidance for FY'27 is Rs. 525-575 crores, signaling 20-30% growth over FY'26 EBITDA of Rs. 429 crores.
- →EBITDA projected to scale further by 20-30% in FY'28, reaching Rs. 650-700 crores.
- →Sangreen (renewable E&C business) expected to maintain revenue doubling trend for three consecutive years.
- →Core E&C business EBITDA margin expected to settle between 12%-15% going forward.
- →Group projected to deliver blended ROCE of 16.25%-16.5% for FY'27.
- →Q1 FY'27 crane rental business witnessed 86% utilization; renewables business is asset-light with high ROCE.
- →Debt-to-equity ratio conservatively guided at 0.72, supporting future capital deployment and growth.
- →Overall, 30-40% revenue growth expected for FY'28 with sustained margin expansion and profitable scaling.
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Fundraise plans
Yes- →The company plans incremental debt primarily:
- → - Debt taken in India (INR) and overseas (USD).
- → - India borrowing cost around 8% ±0.25%, international borrowing at SOFR + 5.5%-6%.
- →Weighted average cost of debt is not disclosed quarterly; will be shared in half-yearly balance sheet.
- →Debt-to-equity ratio guidance for next year is approximately 0.72 on a consolidated basis.
- →Gross debt-to-equity currently at 0.54 times, with a treasury surplus over Rs. 300 crores, implying effective net debt-to-equity between 0.3 and 0.7.
- →No explicit mention of new equity fundraising plans in the provided text.
- →CAPEX for FY'27 is around Rs. 652 crores, with Rs. 92 crores already capitalized in Q1 and balance deployment expected in second half.
- →Debt and CAPEX plans are conservatively managed and aligned with business growth and EBITDA margin expansion.
Order book
Yes- →Current order book stands at approximately Rs. 686 crores (page 12, 15).
- →The inquiry pipeline is roughly Rs. 4,656 crores, representing orders potentially executable in the near term (page 12, 15).
- →The inquiry pipeline in KSA for the next 0-12 months is about $22 million, broken down into infrastructure ($4-7 million), housing and entertainment ($2-3 million), industry ($3-4 million), energy (approximately $1 million), etc. (page 16).
- →The order book is higher than the revenue earned in the previous financial year, indicating growth potential (page 12).
- →Additional orders are expected to be secured particularly in the second quarter due to increased activity post-monsoon (page 12).
- →Approximately 15% of the current order book might be postponed to the next financial year (page 12).
Capex plans
Yes- →FY'27 CAPEX pool approved: Rs. 652 crores, with Rs. 92 crores capitalized in Q1; remaining Rs. 560 crores to be deployed mostly in the second half.
- →CAPEX split: Approximately Rs. 190 crores in India, Rs. 200 crores in KSA, and Rs. 324 crores in the Middle East region.
- →Equipment orders for Middle East CAPEX fully placed; expected revenue generation between Q3 and Q4 of FY'27.
- →Strategic plan to add new depots in GCC countries including Saudi Arabia (locations and timelines undisclosed).
- →Expansion focus on Saudi Arabia and other countries like Qatar, driven by high inquiry pipeline and growth opportunities.
- →Emphasis on disciplined capital allocation ensuring investments meet internal IRR and group ROCE targets.
- →Ongoing investments in digital transformation: new HRMS and CRM software to enhance customer centricity and service delivery.
How does Sanghvi Movers rank vs peers in Commercial Services & Supplies?
Pro feature1Sanghvi Movers
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