Skipper Ltd closes FY24 with record order inflow

 

 

Skipper Ltd received its highest-ever annual order inflow in FY24, standing at over Rs.4,200 crore.

In an investor presentation filed on stock exchanges, Skipper said that order inflows during FY24 reached a record level of Rs.4,286 crore, including Rs.1,141 crore worth of orders received in Q4 (January to March) of FY24.

In FY23, Skipper had received orders worth Rs.4,137 core, thanks to an extraordinary Rs.2,863 crore worth of orders received in Q3FY23, which was incidentally the highest historical level of orders received in any quarter.

As of March 31, 2024, Skipper’s outstanding order book was Rs.6,215 crore, out of which 87 per cent were domestic orders and the remaining 13 per cent exports.

 

Viewed from business segment, power T&D accounted for 53 per cent of the total outstanding order book, as of March 31, 2024.

 

In the power T&D sector, Skipper’s activities largely comprise the manufacturing of power transmission towers, power distribution poles, and monopolies. The company is also engaged in EPC works related to power transmission and railway electrification.

Skipper Ltd has three business divisions – engineering products, infrastructure, and polymer. Power T&D-related activities fall under the first two.

The presentation also observed that engineering products exports made inroads into high-potential developed markets of North America, Asia Pacific, West Africa and Middle East, which were earlier dominated by Chinese and Turkish players. During FY24, Skipper secured international orders worth Rs.782 crore, representing around 18 per cent of the total order inflow.

Skipper also said that it has emerged as the most preferred supplier and contractor for high-voltage transmission line projects of Power Grid Corporation of India Ltd (PGCIL).

The company anticipates business opportunity coming from India’s plan to invest Rs.2.40 trillion to construct 50,890 ckm of new transmission lines by 2030, aligned to the country’s plan of installing 500 GW of renewable energy capacity in the same timeframe.

The presentation observed that Skipper had a robust bidding pipeline worth Rs.10,830 crore in the international market and about Rs.5,900 crore in the domestic market.

 

De-risking of business

Skipper is strategically broadening its portfolio by increasing the proportion of non-power T&D products. The company’s diversification into areas like railways and telecom is yielding favourable results, the presentation said. The share of non-power T&D products stood at 34 per cent in the company’s outstanding order book, as of March 31, 2024.

Also read: Skipper Wins Major Order From PGCIL

 Featured photograph shows Skipper’s transmission tower testing facility at Howrah, West Bengal.