India: KPIL records highest ever order inflow of over INR 30,000 crores in FY24

Kalpataru Projects International Limited (KPIL) has recorded highest ever order inflows of over INR 30,000 crores in financial year 2024 (FY24). The company has won major strategic orders in Indian and overseas markets like oil & gas project in Middle East (ME), metro tunneling project in Bhopal and Kanpur, and orders in Transmission & Distribution business.

Highlights of FY24:

Order inflows rise 19% y-o-y: The company's order inflows rose 19% on the year to INR 30,022 crores in FY24. Out of which, share of domestic was 52% and international was 48%. The growth was majorly driven by T&D, B&F and Oil & Gas business. The company has secured orders totalling around INR 850 crores in FY25 till date. Additionally, the company has L1 position of over INR 5,000 crores.

Order book up y-o-y: The order book rose 27% y-o-y to INR 58,415 crores in FY24, fuelled by robust business activity in Transmission & Distribution (T&D), oil & gas and civil construction. Out of the total, share of domestic was 55% and international was 45%. Furthermore, the company has already bid tenders worth INR 15,000 crores for which results will come in next one or two months.

EBITDA increases 19% y-o-y: The company's operating Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased 19% on the year to INR 1,628 crores in FY24 despite of the cost headwinds.

Segment wise performance:

Transmission & Distribution (T&D): Increasing adoption of renewables and rise in power demand have resulted in upgradation of grid infrastructure worldwide. In the domestic market, the visibility of tenders in the T&D sector is estimated to be around INR 50,000 crores annually for at least the next 2 to 3 years. The business has secured order inflow of INR 11,154 crores, order book of INR 20,678 crores as of end-March 2024. The company expects the business segment to remain robust and achieve substantial growth in coming years.

Buildings & Factories (B&F): Order inflows in the B&F business stood at INR 6,528 crores and year-end order book at INR 11,000 crores in FY24. Additionally, the company hold an L1 position worth INR 1,900 crores. The company anticipates B&F business to be supported by robust order book strong business visibility across sectors including residential and commercial buildings, airports, industrial plants, and data centers.

Oil & Gas: The order inflows stood at INR 7,953 crores and order book at INR 9,031 crores in FY24. KPIL has put efforts over the past few years to establish a presence in international hydro markets in FY24 and secured a Letter of Intent (LOI) for a significant gas pipeline project in the Middle East. The project is expected to significantly enhance the competitive position and drive strong growth in our oil and gas business moving forward.

Urban infra: The business secured order inflows of INR 1,765 crores and order book of INR 3,033 crores in FY24. The business has witnessed strong traction in orders and good opportunities in urban mobility segment. The recent Union Budget announcement to increase capital outlay for infrastructure development to over INR 11 lakh crores further has boosted the potential for sustained growth in the sector.