KPI Green Q4: Revenue and Net Profit Surge, Margin Jumps | NDTV Profit - video Dailymotion

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00:00 [MUSIC PLAYING]

00:03 Welcome.

00:12 You're watching NDTV Profit.

00:13 I'm Harsh Saita.

00:14 And this is a small and mid-cap show.

00:16 With me is Mahima Vachrajani.

00:18 And we're going to talk to two very interesting managements,

00:20 of course, the theme being earnings.

00:23 First off, we have Farooq G. Patel,

00:25 who is the chairman and managing director at KP Group.

00:29 KPI Green Energy came out with numbers, mind you.

00:32 The stock, at least for today, on lower circuit as of now.

00:37 And we also, on the other side, will have another management.

00:41 Again, very interesting.

00:42 But first off, let me welcome Mr. Farooq Patel.

00:45 Welcome to NDTV Profit, Mr. Patel.

00:48 Thank you very much.

00:50 So sir, talk to us about the Q4 numbers itself.

00:53 In terms of trajectory versus Q3,

00:56 the numbers have come in slightly softer.

00:59 Is this seasonality?

01:00 Is this something we can expect going forward as well?

01:02 Please explain that to us.

01:04 No, see, the KPI Green, when I talk about the KPI Green,

01:09 so KPI Green is moving towards to the smaller client,

01:14 to the bigger client, like Aditya Birla and the Ayana

01:19 and all client.

01:20 It's a bigger client, which we have got the orders

01:22 in the quarter four.

01:24 And when the bigger client are there,

01:27 you say that they have the, not like a smaller client,

01:32 where you put the bill or you give the bill

01:36 in a milestone basis.

01:38 Here you have to give the bill in a bigger bill amount

01:43 or the bill, you have to give them what they want.

01:48 So in that case, we have done a lot of work,

01:51 but we are pending over there.

01:53 In this case, we have to, if we want to move towards

01:57 the big client and for that purpose,

02:00 you can see the orders, which we have got in quarter four

02:03 about 682 megawatt, but that all billing cycle

02:11 are different than the smaller client.

02:14 So we are moving towards the gigawatt size.

02:17 We have already energized altogether

02:19 in the group companies about 100.2 gigawatt.

02:22 And now we are going forward on a gigawatt side.

02:25 So we have to face this quarter like this only.

02:30 OK, point taken, Mr. Patel.

02:32 Mahima, this side.

02:33 I just want to understand from your order book perspective,

02:36 what is the total order book at present

02:39 and what are the execution timelines

02:42 that we're looking at?

02:44 So we have the 1.23 gigawatt orders

02:48 in hand in the KPI green.

02:51 Previously, whole nine months, we had a 552 gigawatt.

02:56 And in this quarter, we have the 682 plus.

03:00 So altogether, 1.23 gigawatt orders in hand for the next

03:07 year, you can say.

03:08 And we have already energized 445 megawatt till date.

03:16 And we expect to do this 1.68 gigawatt in the next future.

03:25 Understood, sir.

03:25 So therefore, just in terms of revenue and revenue recognition,

03:30 want to understand what should the ballpark numbers for FY25

03:35 be over FY24 in terms of growth?

03:39 You see the trend of YUI.

03:42 So it is going 48% to 49% always be there.

03:48 So you can expect the same trend over till 2030, my idea.

03:55 Understood.

03:56 And so just with regard to, if I can just add,

03:58 margins should hold above the 30% mark.

04:01 Is that what one can reasonably expect?

04:04 You can-- the same margin will be continued.

04:07 And that's why we are choosing the client in this scenario.

04:11 Because the renewable energy is today's requirement

04:16 of whole world.

04:18 And we are going towards the goal of the Prime Minister

04:22 2030 500 gigawatt.

04:24 And we are contributing our best in that

04:28 from all of our company.

04:30 Understood.

04:31 Mr. Patel, last time when we spoke to you,

04:33 it mentioned that you want to increase your total capacity

04:36 to 10 gigawatt.

04:38 I just want to understand that by when do you

04:40 think this 10 gigawatt will be achieved?

04:43 What are the timelines looking like?

04:45 2030, 10 gigawatt will be there from the group of companies

04:51 of KP, KP Green Energy, KP Engineering, KPI Green also.

04:57 And we have the 10 gigawatt by 2030,

05:04 we will achieve the 20 by 2030 10 gigawatt.

05:08 There will be not at all the chance to not to do.

05:14 And we have performed in the past,

05:15 and we will perform in the next also

05:19 and contribute to the nation.

05:22 Sure, understood, sir.

05:23 So just with regard to--

05:25 again, I come back to FY25 expectations.

05:28 Roughly 1,500 odd crore in terms of the top line.

05:33 How much of this would comprise EPC,

05:36 and how much of it would comprise your own power

05:39 generation, which you do internally?

05:41 How much of that revenue?

05:42 What's the mix like?

05:43 This year, you can see in the revenue,

05:46 17% from the IPP and rest of from the CPP.

05:51 The same trend you can expect in the 2025 also.

05:55 And you will get more--

05:58 we will see the more IPP revenue from the other side

06:02 because we have a very good order in hand, about 322

06:07 megawatt new order in IPP from the GVNL,

06:10 means the government companies.

06:12 So we have already 148 plus 322.

06:14 We near-- we have done this thing.

06:17 We have told this thing in 2023 that we

06:21 are going for the one gigawatt from the--

06:24 by the 2025 calendar year.

06:28 We will achieve that one gigawatt before that,

06:32 and IPP and CPP 50-50.

06:36 So our annuity income will be for the 25 years

06:42 will be fixed around, say, whatever you are seeing today.

06:46 You will get the much more better profit figures

06:51 in the KPI and KP energy.

06:54 OK.

06:55 But I want to understand that all of these orders,

06:58 in terms of the orders received from GVNL and all,

07:02 execution timelines, I want to understand, how much of it

07:05 will you do in FY25, 26, 27?

07:08 What are the timelines?

07:10 See, timeline is already mentioned in the tender

07:14 about, say, 18 months.

07:17 And we have passed three months.

07:19 So you can say, we tried our best to do before March.

07:25 OK, sure.

07:26 And just with regard to--

07:28 I'll switch focus to your balance sheet and balance

07:31 sheet metrics.

07:33 You've taken on some amount of debt.

07:36 Where does this number go to?

07:39 What kind of a number are you comfortable with?

07:43 See, today you see that our debt equity ratio

07:47 is much down, 0.99 to last year, 2.21.

07:53 And you say, in all the companies,

07:57 we are not more than 1 is to 1.

08:00 So here also, if we want big clientele orders and big

08:07 orders, we have to take more and more facilitated.

08:12 And it is that 442 is a debt of long-term debt.

08:19 Otherwise, all the WC Bank guarantee and all things,

08:23 which we have to pay to the GVNL and the tendering system.

08:28 So actually, debt is 0.5 only, if you see, long-term,

08:36 if you see.

08:37 And that is the remarkable reducing in a debt, you can say.

08:43 OK, and Mr. Patel, I also want to understand

08:46 what kind of land bank are you having at present,

08:49 and how will it be put to use?

08:52 See, all together, we have more than 2,200 acre land

09:00 is on our company's board.

09:03 And the evacuation also, we have 1,600 plus evacuation.

09:08 And the government, wherever we are bidding,

09:11 like 240 Khawra, where the government is facilitating us

09:15 the land and the AC part also.

09:20 So therefore, sir, what we're trying to allude to

09:24 is the capex with regard to land is already put up.

09:27 Is that how one can look at it?

09:29 Yes, you can say that thing.

09:32 That we have already land in our hand,

09:35 where we can in the near future, we

09:37 will say execute all the CPP orders.

09:43 OK, sure.

09:44 And so just with regard to profitability,

09:47 how do the metrics add up?

09:49 So as you expand operationally all the way through to FY30,

09:54 what's the kind of growth in profitability

09:58 that one can expect from KPI Green?

10:00 Because now it seems stable profitability is here to stay.

10:06 It is naturally that if you go with the big, say,

10:11 megawatt size, a big gigawatt and all things,

10:14 the profitability not going in a percentage,

10:18 it will go in the numbers.

10:20 Where last time we have declared the profit of 109.

10:26 Today we are on some 160 plus.

10:31 So next year we will expect at least 50% to 70% growth

10:38 in the numbers in profit.

10:42 [MUSIC PLAYING]

10:45 [music]

KPI Green Q4: Revenue and Net Profit Surge, Margin Jumps | NDTV Profit

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