Skipper Ltd has reported an order inflow of around Rs.461 crore in Q2 of FY23, from its Engineering Products (EP) division that mainly deals with power T&D equipment.
According to an investor presentation, Skipper’s EP business saw orders of Rs.461 crore in Q2 (July to September) of FY23, up from Rs.403 crore in the sequential quarter – Q1 (April to June) of FY23.
Exports had a share of 43 per cent in the Q2 FY23 order inflows with the domestic market dominating with 57 per cent.
In the first half of FY23 (H1: April to September), the cumulative order inflows stood at Rs.863 crore, slightly lower than the approximately Rs.954 crore recorded in the same period of FY22.
The company has estimated to end FY23 with a total order inflow of Rs.2,200 crore to Rs.2,500 crore in its EP business.
Order book
As of September 30, 2022, Skipper had an outstanding order book of Rs.2,163 crore in which exports had a share of 45 per cent. Of this overall order book, Power Grid Corporation of India Ltd (PGCIL) accounted for 14 per cent and state power utilities, 29 per cent. The non-power T&D segment (domestic) had a share of 12 per cent, while the remaining 45 per cent were exports. The non-power T&D segment includes hardware for telecom, railways and solar power industries.
Bidding pipeline
The company estimates to have a strong bidding pipeline of Rs.10,500 crore including Rs.5,400 crore in the exports market and Rs.5,100 crore in the domestic market. Skipper is in advanced stage of negotiation to secure some significant international contracts, the presentation said. The company is also expecting international ordering and execution to gain pace in the H2 (October to March) of FY23.
Discussing the international market, Skipper said that the global supply chain is now actively looking at reducing its dependence on China which is a great positive outcome and will bring more opportunities to the company. Skipper also observed that majority of new transmission lines in the overseas market are being built for renewable energy evacuation, leading to shorter execution cycles.
Strong growth in coming quarters
“In spite of a challenging environment, Skipper’s growth trajectory remains firm. I am glad to share all our business clusters are performing really well, aptly reflected in our Q2 FY23 performance. The Q2 order inflow stood at Rs.4,610 million and the YTD inflow at Rs 8,630 million for engineering products supplies. With our closing order book at Rs.21,630 million and an order bidding pipeline of around Rs.54,000 million (international) and Rs.51,000 million (domestic), we are confident of delivering a strong growth in the coming quarters,” observed Sharan Bansal, Director, Skipper Ltd.
Well positioned
According to Devesh Bansal, Director, Skipper Ltd, “We are expecting an order inflow of Rs 22,000 – 25,000 million in FY23. Our consistent order inflow demonstrates that Skipper limited is well positioned to lead the power transmission and distribution business not only in India but globally. Apart from securing businesses from South America, Africa and South East Asia, we received fresh orders of distribution poles from US and Australia.”
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