Nirmal Bang: Power Mech Projects - Lockdown Affects Q1 Execution; Strong Order Inflow A Saviour
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Nirmal Bang Report
Power Mech Projects Ltd. posted Q1 FY21 consolidated revenue of Rs 2.8 billion, down 44% YoY, as lockdown and migrant labour unavailability affected execution.
Erection, testing and commissioning (ETC)/Civil segment sales fell by 66%/45% YoY to Rs 598 million/Rs 740 million while operating and maintenance revenue fell by 15% YoY to Rs 1.2 billion.
International projects formed 19% of total sales (versus 16% YoY). Lower revenue and additional Rs 50 million expenses towards Covid-19 (safety and travel) led to Ebitda loss of Rs 139 million and net loss of Rs 326 million.
Execution in railways, irrigation and Dangote (Nigeria) project continued, albeit with lot of constraints. The level of work at sites in Q1 FY21 was at 56% of Q1 FY20, however, excluding the above three sites, it was only at 30%.
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