Dolat Capital: Kalpataru Power Transmission Delivers Good Quarter; FY21 Outlook Remains Positive
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Dolat Capital Report
Kalpataru Power Transmission Ltd.’s Q1 results came in better than estimates though it was a subdued quarter due to lockdown; Ebitda was lower by 19% YoY but Ebitda margins were fairly stable at 10.7% due to cost rationalisation measures.
The management is confident about recovery of lost productivity in H2 FY21 and maintains guidance of 5-10% revenue growth and margins in 10.5-11% range for FY21.
We assume a 5%/15% topline growth in FY21E/22E and maintain our FY21E and FY22E estimates.
Visible order inflow of Rs 230 billion and Level one orders of Rs 50 billion coupled with shift to favorable business mix will lead to steady revenue growth.
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