Kalpataru Power Transmission Ltd (KPTL), in an investor presentation, said that it foresees business opportunity from Green Energy Corridors (GEC), apart from other growth drivers.
The Mumbai-headquartered KPTL said that the overall opportunity size for its power T&D contracting business, arising from the upcoming Green Energy Corridors, the proposed transmission lines connecting Leh and Ladakh and general projects of state power utilities is an estimated Rs.3.5-4.0 lakh crore, between now and 2025.
Regarding overseas business, the company has estimated global expenditure on power T&D to be around $1.5 trillion over the period 2021 to 2025. In particular, KPTL foresees strong order pipeline from SAARC countries, the MENA region, Africa and South American countries.
KPTL also observed that its market reach in Nordic countries and Brazil is improving, through its overseas subsidiaries LMG and Fasttel. It may be recalled that in 2019, KPTL acquired controlling stake in Swedish company LMG (Linjemontage i Grastorp AB). Later, in April 2021, KPTL, through its Brazilian subsidiary, completed the acquisition of Brazilian EPC company Fasttel Engenharia Ltda, popularly referred to as Fasttel
Order inflow & Order book
KPTL reported new order inflows of Rs.8,159 crore in FY22, out of which power T&D accounted for 87 per cent. More than half of these inflows (Rs.4,598 crore) came during the fourth quarter (January to March) of FY22. The outstanding order book position as of March 31, 2022, stood at Rs.15,759 crore, up 13 per cent year-on-year. All these metrics include figures for LMG and Fasttel. Incidentally, LMG had an order book position of around Rs.1,300 crore while the comparable figure of Fasttel was Rs.509 crore.
In the current year FY23 so far (from April 1, 2022 to around May 14, 2022), KPTL (including LMG and Fasttel) has received orders worth Rs.1,626 crore. Additionally, KPTL holds L1 position in orders worth around Rs.1,500 crore.
The consolidated order book position of KPTL, including JMC Projects stood at Rs.32,761 crore, out of which power T&D accounted for 34 per cent. It may be recalled the board of directors of KPTL and JMC Projects, in February 2022, approved the merger of JMC Projects (a subsidiary of KPTL) with KPTL. The merger is expected to be completed by the fourth quarter (January to March) of FY23.
