Q1 2027 Power Mech Projects Ltd Earnings Call Transcript
Key Points
- Total revenue grew 26% YoY to INR1,632 crore in Q1 FY27, driven by strong execution across core verticals.
- PAT after minority interest surged 53% YoY to INR80 crore, with EPS rising to INR25.23 from INR16.61.
- Order backlog remains robust at INR55,398 crore including MDO projects, providing multi-year revenue visibility.
- Mining business revenue jumped 223% YoY to INR84 crore, supported by ramp-up at KBP mine.
- Secured key orders including Mumbai Monorail O&M, marking entry into urban mobility space.
- Management maintains full-year guidance of INR12,000 crore order inflow and 12.5% EBITDA margin.
- O&M business offers high margins of 18-20% and is expected to grow with new power capacity additions.
- MDO projects are expected to reach 20-23% EBITDA margins by FY29, improving overall profitability.
- Strong order pipeline in power sector with INR25,000-30,000 crore immediate opportunities and high strike rate.
- Standalone EBITDA margin improved to 11.3% from 10.2% YoY, reflecting operational efficiency.
- Consolidated EBITDA margin declined 3% YoY to 10.8% due to higher material costs and Middle East conflict.
- KRPM project margins fell to 10% from 14% due to increased royalty costs and reduced seized quantity revenue.
- KBP mining margins were impacted by higher overburden removal costs from opening new seams.
- Industrial construction revenue declined 13% YoY to INR270 crore.
- ETC business revenue fell to INR217 crore from INR250 crore, with no order inflow in the quarter.
- Order inflow of INR1,864 crore was only 15.5% of the annual target, indicating slow start.
- International revenue remains low at 4% of total, with Middle East conflict affecting operations.
- Raw material costs (steel, gases, diesel) increased, with PVC clauses only partially compensating.
- Lower other income due to completion of QFP-funded projects and reduced interest income.
- MDO revenue guidance for FY27 was revised down to INR500 crore from earlier INR600 crore.
Ladies and gentlemen, good day and welcome to Power Mech Projects Limited Q1 FY27 Earnings Conference Call.
I now hand the conference over to Ms. Julie Pavaskar from Ashika Institutional Equities.
Thank you and over to you Ms. Pavaskar.
Thank you.
Good afternoon and very warm welcome to everyone. On behalf of Ashika Institutional Equities, I welcome you all to Power Meck Project Limited QN FY27 earnings conference call.
Today we have with us management represented by Mr. Rohit Sajja, Executive Director. Mr. N. Nani Arvind, Chief Financial Officer and Mr. S.K. Ramayya, Director, Business Development. We thank the Power Meck Projects for giving us the opportunity to host the call and we would now like to hand over the floor to the management for their opening remarks, post which we will open the floor for Q&A. Thanks, and over to you sir.
Good evening, everyone.
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