Supreme Power Equipment Ltd (SUPREMEPWR) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Supreme Power Equipment Limited H1 FY27 Results Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note this call is being recorded. I would now like to hand the conference over to Mr. Parth Acharya from Kirin Advisors. Thank you, and over to you, sir.
Parth Acharya (Kirin Advisors): Thank you. Good morning, everyone. On behalf of Kirin Advisors, I welcome you all to the conference call of Supreme Power Equipment Limited. From the management team, we have Mr. V. Rajmohan, Chairman and Managing Director of the company. With that, now I hand over the call to Mr. V. Rajmohan for the opening remarks. Over to you, sir. Thank you.
V. Rajmohan (Supreme Power Equipment Ltd): Good morning, everyone. On behalf of Supreme Power Equipment Limited, I welcome you all to our H1 FY27 earnings conference call. Thank you for joining us and for your continued interest in the company. I hope you have had an opportunity to review our financial results and investor presentation. I will briefly take you through our performance for the first half of the year, key operational developments, and our priorities going forward, following which, we will be happy to take your questions. Supreme Power Equipment has over three decades of experience in transformer manufacturing with capabilities across power and distribution transformers catering to utilities, renewable energy, industrial, and infrastructure customers. Over the years, we have continued to strengthen our engineering capability, manufacturing infrastructure
V. Rajmohan (Supreme Power Equipment Ltd): Total income stood at 135.57 crores, registering growth of 79.91% year-to-year. EBITDA increased by 65.46% year-to-year to 23.62 crores with an EBITDA margin of 17.4- 42%. Profit after tax grew by 45.09% year-to-year to 13.65 crores, translating into a PAT margin of 10.07%. Earnings per share for the period stood at 5.46. We are particularly pleased with the strong order momentum witnessed during the first half-yearly of the year. During H1 FY '27, we secured 11 orders aggregating 209.24 crores with execution timeline ranging between 7 and 17 months. This healthy order inflow reflects the continued con- confidence of our customer in our technical capability and product quality and execution track record. Another encouraging development during the period was the expansion of our geographical presence into Maharashtra. This marks an important step in broadening our marketing reach beyond our traditional traditionally strong presence in South India and pro- provides us with opportunity to build relationship with a wider customer base. Our current order book stands at over 565.80 crores, providing strong ex- execution visibility for the coming periods. The combination of healthy opening order book and robust fresh order winning during H1 gives us confidence in the growth the in the growth traject of the trajectory of of the business as we move into the second half of the financial year. Importantly, around 70% to 75% of order book is covered under price variation clauses, which provides a degree of protection against the vol- volatility in key raw material prices. During the period, we have seen pressure from higher prices of key inputs, particularly CRGO steel and transformer oil. These movements can impact margin, especially where there is a timing difference between increase in input cost and the corresponding adjustment under price variation clause. We continue to manage this through disciplined procurement, appropriate commercial terms and a continued focus on protecting profitability. Operationally, the ramp-up of our Kannur manufacturing facility is progressing well. The expanded manufacturing infrastructure strengthen our ability to execute a larger order book, cater to higher-capacity transformer requi- transformer requirements and participate in a broader set of opportunities. We are encouraged by the demand environment across the transformer industry, supported by continued investments in transmission and distribution infrastructure, renewable energy renewable energy integration and industrial expansion. With our strengthened manufacturing capacity, growing order book and improving market presence, we believe we are well-positioned to capture these opportunities. As we move into second half of FY '27, our priorities remain clear: timely execution of existing order book, continued focus on securing quality orders, scaling up utilization of Kannur facility, managing raw material
V. Rajmohan (Supreme Power Equipment Ltd): and working capital efficiently and maintaining healthy profit profitability. Overall, we are pleased with progressing progress made during the first half of the year. The strong financial performance, healthy order win, and expansion into new market reinforce our confidence in the direction of the business. Before concluding, I would like to thank our employees for their continued effort, our customers, our business partners for their trust and our shareholders for their continued support. Once again, thank you once again for joining us today. With that, I would like to open the floor for questions.
Moderator: Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to limit their questions to two per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Moderator: The first question comes from the line of Garvit Goyal with Niveshaay Alpha, please go ahead.
Garvit Goyal (Niveshaay Alpha): Hello, hi, am I audible?
V. Rajmohan (Supreme Power Equipment Ltd): Yes, very much audible sir. Good morning, welcome.
Garvit Goyal (Niveshaay Alpha): Good morning sir and congrats for a good set of numbers. I have two questions. As you mentioned, demand environment is pretty good, right? I wanted to understand from you regarding the pipeline and and it's converting into H2 FY27. So, what amount of orders we are expecting in H2 FY27 and and what will be our closing order book by this year end? And also, looking at first half numbers, our execution has been pretty good. So, considering that, now, are you confident enough to cross 300 cr for this financial year?
V. Rajmohan (Supreme Power Equipment Ltd): Yes, actually now the the demand environment is very good and the sector is also very good. Since the Union Government and the State Government showing much interest in expanding the transmission network, the the demand is very high. That thing one. Next the order book, which we on the in the pipeline is very huge and we are we are securing order based on the quality of the order and the terms. With that, I think we believe the end of year we may maintain between the order book may maintain between 600 to 800 crores. and I think, I think I have answered your questions.
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