KALAPTARU POWER TRANSMISSION

Kalpataru Power  had hit a new 52-week high yesterday on the back of it bagging orders worth Rs.700 crore. The orders are in for the transmission and infra segments. The major bulk of the order, around Rs.350 crore worth of order has come in from Power Grid Corporation to supply and erect 765 KV double circuit Solapur-Aurangabad transmission line of 140km in Maharashtra. It has also secured orders to the tune of Rs.134 crore from Saudi Arabi and Ethiopia. Apart from the general euphoria surrounding Gujarat based companies, the bagging of such large orders is being viewed as a bounce back for the sector and the company.

On the financial front, the company had done better than expected in Q3FY14. It reported a 18% (YoY) rise in net sales at Rs.1050 crore. This was led mainly by the transmission segment, which reported a 25% growth while infra proved to be a drag, down by a whopping 61%. EBITDA was up 6.2% but EBITDA margin was down 101 bps at 8.9%, impacted mainly on account of cost overruns and higher execution of orders with low margins. The company had ended the quarter with a net profit at Rs.34 crore, down 4%. It order book at the end of the quarter was at Rs.7000 crore, up 8% while order inflow rose 53% at Rs.1450 crore. The company’s main focus area is the international and this stood at 60% of total order book. It is seeing orders coming in from SEBs of Tamil Nadu, Andhra though power grid ordering has ebbed.