Any current/future new fundraising through debt or equity?

The company is currently exploring the possibility of raising funds to improve liquidity and accelerate growth due to significant opportunities in the water sector. No definitive conclusion or decision on fundraising has been made yet; it remains at the drawing board or exploration stage. Fundraising, if it happens, is expected potentially in the second half of the current financial year, subject to internal discussions and board approval. The company has Rs.80-90 crore in fixed deposits, expects an additional Rs.40-50 crore from Vivad se Vishwas, and has promoter warrants, totaling about Rs.1

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

The transcript does not explicitly mention any current or planned capex or capital investments by SPML Infra Limited. The company is focusing on bidding for high-quality, profitable water sector projects with strong cash flows rather than capital-intensive expansions. There is ongoing exploration of fundraising opportunities within the financial year to improve liquidity and support order book growth. Fundraising discussions are at the drawing board stage with no finalized plans yet; if done, it will happen in the second half of the financial year. Promoters have infused over Rs.150 crore liqu

Future growth expectations in sales/revenue/volumes?

Targeting an order book of Rs. 2,000 to Rs. 3,000 crore in FY25, with 40-50% execution within the year, translating to Rs. 800 to Rs. 1,000 crore revenue from current orders. Expect gradual revenue growth starting Q2FY25, with a stronger second half. Focus on high-margin, fully funded, easy-to-operate water sector projects; targeting double-digit EBITDA margins. Anticipate Rs. 10,000 crore worth of bidding opportunities annually, aiming for Rs. 3,000 to Rs. 5,000 crore in new orders. Strategic selection of projects to ensure quality and profitability, rather than volume alone. Long-term growth

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

The company targets order book execution of Rs.800 to Rs.1,000 crore in FY25, constituting 40-50% of its Rs.2,000 crore order book (including JV share). It aims for double-digit EBITDA margins (over 10%) on new orders and sustainable EBITDA margin around 12% and PAT margin around 6% from Q1FY25 onwards. Growth driven by focus on high-margin, fully funded, easy-to-operate water sector projects with long-term opportunity of Rs.20-25 lakh crore investment expected over next 10-15 years. Margin improvement expected due to less competition among qualified EPC players and better cost control. The co

Current/ Expected Orderbook/ Pending Orders?

Current total order book stands at approximately Rs. 2,000 crore, inclusive of SPML's direct orders and joint venture (JV) share. SPML's own share of the order book is around Rs. 1,000 crore, with an additional Rs. 1,000 crore through JV. Out of this Rs. 2,000 crore order book, 40-50% (Rs. 800 to Rs. 1,000 crore) is expected to be executed in the current financial year (FY25). The order book execution timeline is spread over 2.5 to 3 years: around 40% this year, 50% next year, and 10% in the following year. Around Rs. 10,000 crore worth of tender opportunities are targeted for bidding, aiming

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SPML Infra LtdQ2 FY24

SPML Infra Ltd Q2 FY24 Earnings Call Analysis

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

Price: ₹189P/E: 30.8Market Cap: ₹1.8K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Targeting an order book of Rs. 2,000 to Rs. 3,000 crore in FY25, with 40-50% execution within the year, translating to Rs. 800 to Rs. 1,000 crore revenue from current orders.
→Expect gradual revenue growth starting Q2FY25, with a stronger second half.
→Focus on high-margin, fully funded, easy-to-operate water sector projects; targeting double-digit EBITDA margins.
→Anticipate Rs. 10,000 crore worth of bidding opportunities annually, aiming for Rs. 3,000 to Rs. 5,000 crore in new orders.
→Strategic selection of projects to ensure quality and profitability, rather than volume alone.
→Long-term growth driven by water infrastructure development backed by government schemes with estimated Rs. 20-25 lakh crore planned investment over 10-15 years.
→Exploring fundraising to accelerate growth and expand bidding capacity.

Margin guidance

Category 3

→The company targets order book execution of Rs.800 to Rs.1,000 crore in FY25, constituting 40-50% of its Rs.2,000 crore order book (including JV share).
→It aims for double-digit EBITDA margins (over 10%) on new orders and sustainable EBITDA margin around 12% and PAT margin around 6% from Q1FY25 onwards.
→Growth driven by focus on high-margin, fully funded, easy-to-operate water sector projects with long-term opportunity of Rs.20-25 lakh crore investment expected over next 10-15 years.
→Margin improvement expected due to less competition among qualified EPC players and better cost control.
→The company is exploring fundraising and rating upgrades to enhance financial strength and support order book growth.
→Revenue growth is expected to be steady, with potential to exceed FY24 revenues depending on order inflows and execution rates.
→Operating profits and earnings per share (EPS) are expected to improve alongside margin expansion and increased scale from new orders.

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Fundraise plans

Yes

→The company is currently exploring the possibility of raising funds to improve liquidity and accelerate growth due to significant opportunities in the water sector.
→No definitive conclusion or decision on fundraising has been made yet; it remains at the drawing board or exploration stage.
→Fundraising, if it happens, is expected potentially in the second half of the current financial year, subject to internal discussions and board approval.
→The company has Rs.80-90 crore in fixed deposits, expects an additional Rs.40-50 crore from Vivad se Vishwas, and has promoter warrants, totaling about Rs.150-170 crore visibility for bank guarantees to support bidding.
→Discussions with banks for increasing bank guarantee limits are ongoing.
→Fundraising could be through debt or equity, but specifics are yet to be decided and announced.

Order book

Yes

→Current total order book stands at approximately Rs. 2,000 crore, inclusive of SPML's direct orders and joint venture (JV) share.
→SPML's own share of the order book is around Rs. 1,000 crore, with an additional Rs. 1,000 crore through JV.
→Out of this Rs. 2,000 crore order book, 40-50% (Rs. 800 to Rs. 1,000 crore) is expected to be executed in the current financial year (FY25).
→The order book execution timeline is spread over 2.5 to 3 years: around 40% this year, 50% next year, and 10% in the following year.
→Around Rs. 10,000 crore worth of tender opportunities are targeted for bidding, aiming to secure Rs. 2,000-3,000 crore new orders in the current year.
→Majority orders are EPC projects focused on water sector projects including pipeline, distribution, irrigation, and sewage.
→Performance bank guarantees required for bidding range from 1% to 5%, with approximately Rs. 150 crore of funds available for bank guarantees.
→O&M portion in order book is minimal, approximately Rs. 100 crore.

Capex plans

Yes

→The transcript does not explicitly mention any current or planned capex or capital investments by SPML Infra Limited.
→The company is focusing on bidding for high-quality, profitable water sector projects with strong cash flows rather than capital-intensive expansions.
→There is ongoing exploration of fundraising opportunities within the financial year to improve liquidity and support order book growth.
→Fundraising discussions are at the drawing board stage with no finalized plans yet; if done, it will happen in the second half of the financial year.
→Promoters have infused over Rs.150 crore liquidity in the last five years, indicating strategic capital support.
→The company aims to optimize execution by subcontracting to reduce working capital strain instead of heavy capital investment.
→Overall, the emphasis is on strategic order selection and increasing profitability rather than heavy capital expenditure.

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