Power Mech Projects Q4 Review - Diversification Into Civil Provides Strong Visibility On Growth: Nirmal Bang
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Nirmal Bang Report
Power Mech Projects Ltd.’s Q4 FY21 consolidated revenue increased by 27% YoY to Rs 7.5 billion, 24% above our estimate.
While the lockdown had adversely impacted execution in Q3 FY21, it completely normalised in Q4 FY21.
Management highlighted that execution has picked up across large projects.
While erection testing and commissioning segment sales fell by 12% YoY to Rs 1.6 billion, operations and maintenance/civil sales grew by 29%/75% YoY to Rs 2.2 billion/Rs 3.2 billion.
Ebitda increased by 14.5% YoY to Rs 745 million, but Ebitda margin declined by 100 basis points YoY to 9.9%, which was below our estimate of 11.1%.
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