Latest news with #orderintake
Daily Mail
2 days ago
- Business
- Daily Mail
Chemring boasts record order book as global military spending swells
Chemring boasted record order intake and order book size in the first half as global defence spending continues to rise amid tensions in Europe and the Middle East. The aerospace and defence contractor on Tuesday revealed its order intake totalled £488million in the six months ending April, a 42 per cent annual increase. This contributed to the Hampshire-based company's order book growing by a quarter to £1.3billion, the highest in its history. Multi-year purchases helped Chemring's order intake soar by over two-thirds to £418million in its countermeasures and energetics segment. Its Scotland-based business secured a £23million deal to supply components used in the Next Generation Light Anti‐Tank Weapon system and an £11million deal from the Ministry of Defence for various air countermeasures. Chemring's Norwegian subsidiary, Chemring Nobel, also struck a £278million deal with Diehl Defence to provide MCX, a type of explosive material used in munitions. But overall revenues rose by just 5 per cent to £234.3million due to a weaker performance from its sensors and information segment. The FTSE 250 firm said the division's rate of new order placement had slowed amid delays by the UK Government in the publication of its strategic defence review. However, the group saw its total underlying operating profits expand by 8 per cent to £27.1million and kept its guidance for 2025 unchanged. Michael Ord, chief executive of Chemring, said: 'Both sectors benefitted from the receipt of several significant orders in the period, evidencing confidence in our market-leading products and services. 'With growing geopolitical uncertainty resulting in increased defence expenditure, particularly across NATO, the group is well positioned, with a strong and sustainable platform to increase revenue to £1billion by 2030.' Global military expenditure went up by 9.4 per cent to $2.7trillion last year, according to the Stockholm International Peace Research Institute, as wars raged in Ukraine and the Middle East, and concerns remained elevated over China's intentions towards Taiwan. Total spending by NATO member states grew to $1.5trillion, partly driven by European countries ramping up spending following pressure from US President Donald Trump for them to bear a greater share of the defence burden. British defence giants, such as BAE Systems, Babcock, and Chemring, have been major beneficiaries of this added spending, which has led to their share prices jumping considerably. Chemring Group shares were the FTSE 250's top riser on Tuesday morning, rising by 6.3 per cent to 517p, meaning they have leapt by approximately 58 per cent since the year began.
Yahoo
3 days ago
- Business
- Yahoo
GE Power India Ltd (BOM:532309) Q4 2025 Earnings Call Highlights: Record Order Intake and ...
Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GE Power India Ltd (BOM:532309) reported a 22% increase in order intake for the current quarter compared to the same period last year. The company achieved its highest ever order intake from continuing operations since the financial year 2019-2020. The company completed the strategic sale of its hydro and gas businesses, resulting in a significant gain of INR 219 crore. GE Power India Ltd (BOM:532309) is now a debt-free company with a net cash position of INR 433 crore as of March 31, 2025. The company has a healthy order backlog of INR 2,662 crore, reflecting a strong pipeline for future growth. Despite improvements, the company reported a negative EBITDA for Q4 due to low gross margins of 23%. The utilization of the Bharur facility remains suboptimal, with only two-thirds of its capacity being used. The company faced challenges with prolonged EPC site provisions impacting financial performance. There is ongoing pressure on the P&L due to underutilization of facilities. The company has not provided specific projections for future gross margins, creating uncertainty about profitability improvements. Warning! GuruFocus has detected 4 Warning Signs with BOM:532309. Q: It has been around 15 quarters since the company has not performed well. Given the favorable conditions in India compared to other power companies, where are we lacking? A: Unidentified_2 (Managing Director): We are strong on our core services, having grown by about 22 times. There was some confusion regarding FGDs, but recent policy clarifications have cleared uncertainties. We are confident in our strategy and have been declared winners in one of the FGD projects, which boosts our confidence in this area. Q: Will the parent company, GE or Nova, infuse some money into GE Power India? A: Unidentified_3 (CFO): We are a legal entity and speak on our behalf. Our balance sheet is stronger post the carve-out of hydro and gas businesses, with a net worth of 233 crores and a cash position of 433 crores. We are moving forward with our set strategy. Q: The Q4 performance showed gross margins of just about 23%, resulting in a negative EBITDA. Can we expect better gross margins in the future? A: Unidentified_3 (CFO): The quarter faced prolongation and provisions on EPC sites, impacting margins. We refrain from providing projections, but our strategy shift towards services is expected to improve margins. Our backlog has improved by 200 basis points, indicating healthier margins. Q: What are the utilization levels of the Bharuch facility, and can we expect better utilization? A: Unidentified_3 (CFO): The facility's utilization was around 165,000 hours against a capacity of 242,000, indicating 2/3 utilization. We are focusing on non-fossil growth and exports to improve utilization. However, it will take a few quarters to optimize fully. Q: Is there any possibility of changing the company's name to align with GE Nova? A: Unidentified_3 (CFO): There are no current plans for a name change. We already have a differentiator with "Power" in our name, and any changes would have been made at the launch of GE Nova. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
GE Vernova T&D India Ltd (BOM:522275) Q4 2025 Earnings Call Highlights: Record Order Intake ...
Order Intake: INR29.9 billion in Q4, up 124% year-on-year from INR13.3 billion. Revenue (Q4): INR11.5 billion, up 26% year-on-year from INR9.1 billion. Revenue (FY24-25): INR42.9 billion, up 35% year-on-year from INR41.7 billion. Order Backlog: INR126.6 billion as of March '25, doubled from INR62.7 billion as of March '24. Profit Before Tax (Q4): INR2.5 billion, compared to INR1.01 billion in the previous year. Profit Before Tax (FY24-25): INR8 billion, up from INR2.6 billion in FY23-24. Cash and Cash Equivalents: INR10.5 billion as of March 31, up from INR2.8 billion as of March 31, '24. Cash Generated (Q4): INR1.9 billion. Cash Generated (FY24-25): INR8.3 billion. EBITDA (Q4): INR2.5 billion, representing 21.9% of revenue. EBITDA (FY24-25): INR8.1 billion, representing 19.1% of revenue. Warning! GuruFocus has detected 1 Warning Sign with BOM:522275. Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GE Vernova T&D India Ltd (BOM:522275) reported significant revenue growth, with Q4 revenue increasing by 26% year-on-year to INR11.5 billion. The company achieved a substantial increase in order intake, with Q4 orders reaching INR29.9 billion, up by 124% year-on-year. The order backlog doubled to INR126.6 billion as of March 2025, indicating strong future demand. The company announced a strategic investment of INR400 million to enhance manufacturing capabilities for HVDC technologies, positioning it well for future growth. GE Vernova T&D India Ltd (BOM:522275) maintained a strong cash position, with cash and cash equivalents at INR10.5 billion as of March 31, 2025. The company faces challenges in the supply chain due to global demand and political uncertainties, which could impact operations. There is a risk of pricing stability in the transformer market, with limited room for further price increases. The company has a significant portion of its order backlog tied to long-term projects, which may delay revenue realization. The company's focus on product orders over turnkey projects could limit its market opportunities in certain segments. The company has not yet secured any STATCOM projects in India, despite the growing importance of this technology in renewable energy integration. Q: How much of the existing backlog of INR127 billion is executable within the next 18 months? A: Approximately INR85 billion of the order backlog is executable within 1.5 to 2 years. The remaining INR30 billion consists of longer-term projects with execution timelines of three to five years. Additionally, there are orders that are received and executed within the same financial year. Q: Could you share the timeline for new HVDC projects, especially for FY26? A: We expect at least one to two HVDC projects to be funded during this year. The transmission committee is reviewing projects, and we anticipate some approvals soon. Q: What explains the strong gross margin performance, and is it sustainable? A: The strong gross margin of 42% in Q4 was due to better pricing, a strategic shift towards product orders, and increased export revenue. While quarterly margins can vary, we aim to sustain the annual gross margin of 40.4% achieved this year. Q: Is the new factory for HVDC components necessary to participate in upcoming domestic opportunities? A: While not a requirement, the new factory will enhance our competitiveness and local presence, which is beneficial for meeting Make in India criteria and improving customer confidence. Q: How do you see the overall Total Addressable Market (TAM) growing for non-HVDC high-voltage and export segments? A: We anticipate a 20% CAGR in the non-HVDC space, driven by government plans and global energy transition trends. The export market is also expanding, with opportunities in Europe, Southeast Asia, and Africa. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
