Skipper has recorded its all-time high order book position of over Rs.4,700 crore.
In an investor presentation discussing the company’s performance in the first three quarters of FY23, Skipper Ltd said that its outstanding order book position as of December 31, 2022, stood at Rs.4,705 crore. This was the highest in the company’s history, the presentation noted.
Around 80 per cent of this order book came from the domestic market with exports accounting for the remaining 20 per cent. The power T&D sector accounted for 22 per cent of the order book. Incidentally, exports from the engineering products division nearly doubled year-on-year to Rs.497 crore during the first three quarters (April to December) of FY23.
It may be noted that the order book relates to the engineering products and EPC business divisions of Skipper. The company also has a polymer division that provides irrigation and drinking water solutions.
In the third quarter (Q3: October to December) of FY23, order inflows from the engineering products and EPC businesses was Rs.2,863 crore and that during the first three quarters, the same stood at Rs.3,727 crore.
Business outlook
Domestic power T&D activities are showing signs of rebound and the tender pipeline continues to stay strong, the presentation said, adding that many tenders in the domestic power T&D market that got postponed are now expected to be concluded in next few months.
Skipper has estimated a total order pipeline of Rs.5,200 crore from the international market and around Rs.3,120 crore from the domestic market.
On the power T&D front, Skipper anticipates significant business opportunities from the Rs.2.44-trillion investment planned in transmission lines (estimated at over 50,000 ckm) and substations planned for evacuation of power from upcoming renewable energy parks. India has targeted to achieve renewable energy capacity of 500 GW by 2030.
Also read: Skipper Ltd: Good Growth In Order Inflow
Testing facility advantage
The presentation also observed that all new large power T&D projects in the domestic market are now coming with design and load testing scope. In this reckoning, Skipper said that it would have distinct advantage over competition as the company has its own R&D centre and tower testing facility. (See photograph)
Featured collage shows Skipper’s tower testing facility at Howrah in West Bengal. On the left is seen testing of a 765kV transmission tower while that on the right shows testing of a 400kV double-circuit quad moose monopole.
