Karamtara Engineering Limited

The company has a strong track record in the power transmission and distribution (T&D) segment having supplied 550,000 metric tonne of transmission line towers in over 25 countries. The company has preferred vendor status from various utilities and supplies to players like PGCIL, KEC International, L&T, Kalpataru, Tata Power, Sterlite, Sterling & Wilson, Adani Power, etc. The combined installed capacity for all the products stands at 3.13 lakh metric tonne with capacity utilisation of 67% for FY

The total operating income (TOI) have grown at compounded annual growth rate (CAGR) of 31.8% for FY21-24 reaching ₹2,425 crore for FY24. Growth of 15% year-over-year (y-o-y) was reported in FY24 been aided by strong volume growth. The profit before interest, lease rentals, depreciation, and taxation (PBILDT) margins have come down from 12-13% range to 9-11% range over last two fiscals, while return on capital employed (ROCE) improved to 24.5% in FY24 (from 15% in FY23). Interest costs

The comfort on the revenue visibility is being drawn from the unexecuted orderbook of ₹1,538 crore as on April 1, 2023, of which ₹1,362 crore was expected to be executed in FY24. Additionally, ₹1,816 crore worth of orders were in pipeline and under discussion stage. The company is into end-to-end solutions for solar power and transmission power segment for manufacturing module mounting structure, transmission towers, beams, torque tubes, hi-tensile fasteners, hardware. Such level of integration

The leverage is higher due to significant Letter of credit (LC) backed acceptances (which comprise ~ 48% of total debt). Overall gearing was 1.77x, while debt to equity ratio was 0.34x as on March 31, 2024. The debt taken for solar capacity capex and COVID-19-related working demand loan during FY20 and FY21 increased the financial leverage of the company. The gross current asset (days) has improved at 173 days as on March 31, 2024, (from 208 days as on March 31, 2023), but still remains at quite

The company is exposed to the foreign currency fluctuation risk due to 55% revenues from exports for FY24 (down from 73% in FY23). For the orders to be delivered within six months, the company uses PCFC (packing -credit foreign currency) which acts as a natural hedge. For the orders above six months, all the transactions are being either hedged or, the company sometimes imports raw materials (instead of inland sourcing) to offset the forex risk from exports.