Emkay Global Financial's report on Kalpataru Power
KPTL (Standalone) reported a 14% YoY decline in revenue in Q4FY22 and a ~200bps correction in EBITDAM, due to lower dispatch in T&D, weak inflows in H1FY22 and slow progress in few oil & gas pipeline projects. For FY22, revenue declined 8% YoY, while EBITDAM fell to 9.2% from 10.5% YoY, affected by higher commodity and freight prices. The order inflow of Rs81.6bn was lower by 3% YoY. The order book stood at Rs157bn, with international T&D accounting for ~61% of the book. In FY23 so far, the company has bagged orders worth Rs16.3bn and has emerged L1 in orders worth ~Rs15bn.
FY23 is expected to see revenue growth of 10-15% and EBITDAM of 9% as per management. Inflows are expected to be in the Rs100-110bn range. Net debt has fallen from Rs7.7bn in FY21 to Rs4.1bn FY22. We maintain Buy with a Mar’23 TP of Rs500 (earlier Rs490). The merger with JMC Projects will have financial and operational synergy.
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