Kalpataru Power Transmission is one of India's leading companies in the design, testing, fabrication, erection and construction of transmission lines and substation structures on a turnkey basis across India and Overseas. About 485,000+ MTs of towers and substation structures have already been designed, manufactured and supplied over the last few years of which over 120,000 MTs has been exported. Over 200 Tower Tests of 132-500KV have been carried out successfully, including 100 nos. at its own Testing Station, which is one of the largest facilities of its kind in the world.
What is new?
The company crossed the landmark turnover of over Rs.1000 crores for the 9 months ended 31st December, 2006 with a net profit of over Rs.95 Crores. For the quarter ending December 20006, The company achieved a turnover of Rs. 394 crores, which signifies a growth of 86 per cent over the previous corresponding period revenue of Rs. 213 Crores. The Profit before Tax has jumped by 127% to Rs.52.6 Crores as against Rs.23.2 Crores in the previous corresponding quarter. The Profit after Tax has also jumped by 139% to Rs.38.8 Crores as against Rs.16.2 Crores in the corresponding period of previous year. For the 9M period ending December 2006, the company has achieved the highest ever PBT of Rs. 130 Crores and a bottom line of Rs. 95 Crores for the first 9 months of the current year which shows an increase of 156 per cent and 170 per cent growth respectively as compared with the corresponding period of last year.
The current order backlog is above Rs.2000 Crores. During the quarter, the company secured a large order from the Nepal Electricity Board. This project is funded by world bank and is worth approximately Rs.45 Crores. Apart from this, the company has made a successful foray into International rural distribution projects in Kenya by securing orders from Kenya Power & Lighting Co. Ltd., Kenya worth approximately Rs. 18 Crores. The Company is further expecting Rural Distribution and Transmission Jobs from the African markets.
On the other hand, the company’ which has a majority stake in JMC Projects reported total revenue of Rs. 337 Crores, which, boils down to a growth of 90 per cent. The profit before tax stood at Rs. 16 Crores as compared to a loss of Rs.0.39 Crores for the 9 months ended 31st December, 2006. JMC has an order backlog in excess of Rs 1000 Crores. The company has decided to exercise its option to convert its warrants into 0.11 Crore Equity Shares at Rs 152 per Equity Share, thereby the shareholding of the Company in JMC Projects (India) Ltd. is expected to exceed 50% in Feb 07.
On the scenario front, The inter-regional power transmission capacity of the country is likely to increase from 11,500 MW currently to 16,450 MW at the end of the tenth plan and to 37,150 MW at the end of the eleventh plan - FY07 and FY12 respectively. Progress on planned power T&D infrastructure upgradation is driving the current phase of capex growth. This Capex outlay, we believe will be beneficial for front running players like Kalpataru.