Skipper declines after Q3 PAT skids 36% YoY to Rs 7 cr

27 Jan 2022 , 01:24 PM

On a standalone basis, the net profit dropped 26.1% to Rs 8.45 crore on a 12.9% decline in net sales to Rs 400.50 crore in Q3 FY22 over Q3 FY21. EBITDA grew 7.70% to Rs 475.10 crore in Q3 FY22 as compared to Rs 441.10 crore in Q3 FY21. EBITDA margin improved 11.9% in Q3 FY22 as against 9.6% in Q3 FY21.

During Q3 FY22, Skipper recieved an order inflow of Rs 423 crore for engineering products supplies from several SEBs and for various export supplies. The closing order book as on 31 December 2021 was valued at Rs 2216 crore, which constitutes of 42% exports and 58% domestics orders.

The company has a bidding pipeline of 38,000 million international and 15,000 million domestic, expecting a substantial rise in the volume of international orders in the current fiscal. The management expects the international business to grow exports to 50% of engineering revenue in current year (FY22) and 75% in next two years.

Commenting on the result, Sharan Bansal, the director of Skipper, has said that, At Skipper, we are enthused with our new order wins worth Rs 423 crore from our Engineering division, taking our year to date total order inflow to Rs 1377 crore, a growth of 279 % over the same period last year. Our closing order book stood at Rs 2,216 crore, which constitutes 58% domestic & 42% exports giving us confidence to deliver good growth in the coming quarters. These new orders will help us to further consolidate our position in the industry.

Our success in this quarter is largely due to our breakthrough with 3-4 utilities in the Asia Pacific, Middle East and West African Market, which were earlier dominated by Chinese manufacturers. Raw material price volatility and global logistics bottle-necks for exports continue to be a challenge – however, we are taking adequate steps to mitigate these. The coming days are showing signs of rebound in the T&D sector in the domestic sector and continued newer geographical opportunities for us in the international space also, the upcoming 5G network rollouts will provide ample business opportunities for our products in the telecom sector.

Our experience and excellence in various arenas, from plant operations & maintenance to resource management, coupled with our locational advantage have helped us to perform consistently. As a forward looking company we are focusing on various excellence initiatives to enhance safety, reliability, predictability, and profitability for all our business verticals. I am delighted to announce that Skipper Limited has been Great Place to Work-Certified! Its a testimony of our efforts in building a High-Trust, High-Performance CultureTM in our organization. Our journey towards a robust corporate governance framework and practicing a growth culture is integral to our pursuit of long-term value creation for all stakeholders, he added.

Skipper has three business segments, viz. engineering, polymer and infrastructure. The engineering segment is into manufacturing of transmission tower, telecom towers, poles, distribution poles, angles, fasteners and railway structures. The polymer segment manufactures various kinds of UPVC pipes, CPVC pipes, SWR pipes. In the EPC segment, the company executes projects related to power transmission.

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