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Power Mech Projects Limited Investor Presentation– February 2025
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Disclaimer 2 This investor presentation has been prepared by Power Mech Projects Limited and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof), delivered or supplied, should not be deemed to constitute an offer. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be ‘forward-looking statements’, including those relating to the general business plans and strategy of Power Mech Projects Limited, its future financial condition and growth prospects, future developments in its industry, and its competitive and regulatory environment, and statements which contain words or phrases such as ‘will’, ‘expected to’, ‘horizons of growth’, ‘strong growth prospects’, among many others, or similar expressions or variations of such expressions. These forward-looking statements involve a number of risks, uncertainties, and other factors that could cause actual results, opportunities, and growth potential to differ materially from those suggested by the ‘forward-looking statements’. Power Mech Projects Limited may alter, modify, or otherwise change, in any manner, the content of this presentation without obligation to notify any person of such revision or changes. This presentation cannot be copied and disseminated in any manner.
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Professional management team and skilled workforce Strategic partnerships and JVs Power Mech at a Glance 3 A leading industrial services and construction Company providing comprehensive service in power and infrastructure sector Diversified service presence across sectors with Pan India presence and expansion across international geographies Comprehensive service provider in power and infrastructure sector Significant orderbook scale up since IPO Largest service provider in O&M space with backward and Forward integration. Consistent track record of growth with stable margins Long term relationships with Marquee clientele 1 2 3 4 5 6 7 160 Total Ongoing projects 62 O&M/ AMC projects(domestic) 15 Overseas projects Rs. 3,524Cr Order book at IPO (FY16) Rs. 57,915 Cr* Order book as on 31st Dec 24 Sectors Industrial plants Roads New geographies Uganda Sudan Kenya Morocco Management with strong industry experience Railways & Metro *Including MDO contracts of Rs. 9,294Cr and Rs.30,337Cr (Execution considered up to 31st December 2024) Iraq Qatar Water Mining Rs. 4,234cr Total Revenue Rs.524cr/12.4% EBITDA/ margin Rs.248cr/5.9% PAT/ margin FY24 10,761 Manpower base Q3’FY25 Largest O&M Service provider 8
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Business Overview 4 Industrial Construction (Domestic & Overseas) ❑ Erection, Testing & Commissioning (ETC) of projects in Power, Nuclear, Refinery, Petro Chemicals, Oil & Gas, Steel & Minerals ❑ Caters Coal-based Power Plants BTG & BOP works with unit capacities ranging from 150 MW to 800 MW including FGD & SCR. ❑ Cross Country Pipelines, Erection of Piping Packages & Tankages Mining ❑ Development of mine infrastructure, removal of overburden and extraction of coking coal and carry all other activities incidental to coking coal contract mining Infrastructure Construction ❑ Civil works of Foundations, Decks, Chimney, Cooling Towers, Green Buildings, Coal Handling Plants etc for Power & other Industrial Plants ❑ Cater EPC works for Railways & Metro, Roads & Water Projects Manufacturing & Heavy Fabrication ❑ Backward integration to O&M business, advanced manufacturing facility at Noida for service need of Power and Non Power sector ❑ Cates to fabrication of heavy structures, large & high-pressure tanks, hydro turbines etc. Industrial Services - Operation & Maintenance (Domestic & Overseas) ❑ Provide comprehensive & integrated O&M services in mechanical, electrical & C&I including control room / desk operations of Power Plants ❑ Overhauling and Maintenance of Boiler, Turbine & Auxiliaries, R&M of BTG, GTG, CHP, BOP. ❑ Global presence in Saudi Arabia, Oman, Kuwait, Bangladesh, Nepal, Bhutan & Nigeria ❑ Expanded O&M services footprint to Refinery, Petrochemical, Steel, Drinking Water, Mineral & Material Handling Services.Service Presence
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Established Track Record 5 >28.98Lakhs MT Erection Works € 2.57 Lakhs MT Structural Fabrication works 71,537 MW unit capacity of the O&M & AMC 9,262 MW Commissioned in power sector in overseas markets 69,966 MW Capacity addition of Boiler, Turbine, Generator and Balance of Plant 15 Lakhs sq. ft. Completed infra development work within an year at Vizag, AP 546 Km Execution of Natural Gas Cross Country Pipeline 11.8L inch mts Of piping at Dangote, Nigeria 756 TKM Commissioned over- head Electrification works 25.92 Lakhs m3 Concreting works carried out 220Kv GIS Substation works 132Kv Lines & 33/11 Kv SS Commissioned in Assam and MP
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Journey of 3 decades 6 Consolidation and leveraging growth Synergistic Diversification Power Focus Power Mech has built experience in executing projects in diversified fields in the last 10 years resulting in a better pre-qualification clearance for new projects 1 2 3 Beginning of journey in 1999 Accomplished several milestones Gained market entry into various elements of India ‘s power sector Growing expertise with expansion of services Entry into overseas markets Entry into Non power sectors Transformation as a total service provider - enhancing engineering and project based solutions Consolidation of business model Erection, Testing and Commissioning Operation & Maintenance Thermal plants Civil works Export Business Core Focus areas (ETC, O&M) Enlarging O&M reach Rs. 111Tn investment in NIP PM Gati Shakti Scheme Non power sectors Water Industrial Plants Railways & Metro MiningRoads
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7 Company’s Strengths Largest service provider in O&M space with backward and forward integration Comprehensive service provider in Power and Non-Power Sector Orderbook strengthened by MDO order for sustained growth International project handling capabilities Strong execution capabilities with experienced management at the helm Marquee clientele: Long term relationships with major OEM, EPC players and Utility Companies Asset Base with over 300 cranes and other civil construction equipment's 1 2 3 4 7 6 5 Robust Financials with sustained margins8 Large talent pool with relevant industry background, diversified skill base9
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8 Partially Developed To Be Developed Fully Developed Thermal, Gas & Hydro Power (Domestic) Exports (Power & Desalination Plants) Water Projects Iron Ore, Mineral Processing & Cross Country Pipeline Mining SteelRefinery & Petro Chemical Electrical Network Maintenance Expansion of Operation and Maintenance (O&M) business Largest O&M player in the Country, expanding services into other sectors & new horizons Service presence Revenue expansion over years 566 661 930 1,109 FY19 FY21 FY23 FY24 Revenue from O&M Rs. cr Long term and sustainable revenues Potentially higher margins
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9 Mining, Development and Operations order (MDO) MDO Generating higher margins✓ Strengthening the already robust orderbook✓ Long term and sustainable revenues✓ Enlarging core competence✓ Coking Coal Mining – Strategic step in forward integration in line with overall business plan Order #1 Central Coalfields Limited Rs. 9,294Cr Executable over 25 years* Kotre Basantpur Pachmo Open cast project + ~74% ~26% AMR Order #2 Rs. 30,383Cr Executable over 28 years* Tasra Open cast project + ~74% ~26% PC Patel *including development period of 2 years Steel Authority of India Limited Combining existing expertise from our business verticals Crushing & Screening Large Fleet Management O&M Earth Moving Coal Handling Plants Washery
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Bangladesh Bhutan Sri Lanka Ghana Nigeria Sudan Morocco Jordan Kazakhstan India Iraq Yemen Oman Kuwait Saudi Arabia UAE HQ Existing Geographies New Geographies Bahrain Global Footprint (as a service provider) Completed overseas projects Select ongoing overseas projects 1,800 MW Alba PS5 CCPP, Bahrain 400 MW Dangote Oil Refinery & Petrochemicals Project, DORC, Nigeria 2X660 MW at Rampal, Maitree, Bangladesh-BIFPCL Power Mech has diversified across geographies, hedging risks, protecting margins and enhancing revenue visibility with international presence strengthened by pre-qualification capacity
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Business Strategy 11 Rs.111 Lakh Crore Identifying feasible & rewarding opps. Identifying EPC1 contracts in infra segment in Railway, Water Projects, Roads, Urban Infra Development, Energy Tie-ups Foray into Flue- gas desulfurization retrofit via tie ups with EPC and technology players Enhancing project execution capabilities Expanding EPC1 capabilities in non power sectors, enhancement in HR base and better utilization of assets & timely completion of Projects. Backward & Forward integration Core of business consolidation Expanding O&M profile Focus on utility thermal power plants and captive power plants, integrating spare parts business, international operations and penetration into non power sector Entering value added services Transformation as a total service provider enhancing engineering and project based solutions Digital initiatives Risk management and productivity improvement with various digital initiatives Geographical expansion Focus on export space with consolidation in overseas business …with focus on diversification Power Mech is undertaking measures to expand its service offering in other sectors and utilizing the technical knowledge to achieve higher margin contracts Investment under National Infrastructure Pipeline (NIP) Expanding MDO capabilities 15 MTPA Capacity expansion over 10 years Leveraging ongoing government investment in NIP2 to drive Power Mech’s growth across sectors Across sectors Industrial Plants Railways & Metro Energy & power Roads Water Strategic areas… Sustained Visible revenue 1. EPC – Engineering, Procurement and Construction 2. NIP – National Infrastructure Pipeline Mining
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Domestic Clients Established Relationships with Clients – Domestic Projects 12 Central Organization for Railway Electrification (CORE)
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International Clients Established Relationships with Clients – International Projects 13
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Board of Directors 14 Mr. Sajja Kishore Babu (Founder, CMD) • 37+ years experience in Power and Infrastructure sector • Serves on Board of subsidiary and joint venture companies • Holds a Bachelor degree in Mechanical Engineering Mr. Vivek Paranjpe (Independent Director) • 45+ years experience in leadership roles in India and abroad • Previous associations include Hewlett Packard, Reliance Industries Ltd • Holds B.Sc (Honors) from Fergusson College, Pune and Post-Graduate degree from XLRI Jamshedpur Mr. M Rajiv Kumar (Non-Executive Director) • 38+ years experience in BHEL • Rose to the level of Executive Director, Power Sector, Eastern Region • Mr Kumar is a graduate in Electrical Engineering Ms. Sajja Lakshmi (Non-Executive Director) • Holds a place in the HR management of the Company and CSR Committee • Ms Lakshmi is a science graduate who is deeply engaged in social service Mr. J P Chalasani (Independent Director) • 40+ years experience in the Indian infrastructure industry • He is the CEO of Suzlon Energy Limited • Previous associations include NTPC, Reliance Power, Punj Lloyd and others Ms. Lasya. Y (Independent Director) • 16+ years exp. In IT Project Management & & delivery, client engagement, IT strategy, business development • Holds Post-Graduate in Management from ISB and MS in Electrical and Computer Engineering from the University of Texas
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Professional and Experienced Management 15 Mr. S. Rohit (President, BD & Operations) • Leads Overseas Operations, Business Development, Corporate Strategy and digital initiatives for Power Mech group of companies • MBA from University of Oxford & Master’s Engineering Management degree from USC Mr. Nannuri Srinivasa Rao (CEO- Africa & Saudi Region) • 30+ years experience in the power industry • Previous associations include Shapoorji Pallonji Infra Capital Co Ltd. Mr. G. Srinivasulu (Executive Director Non-Board) • 30+ years experience in the Power Sector dealing in Project & Construction Management, Erection & Commissioning Mr. M Ramesh (Vice President – Subcontracting Works) • 35+ years experience in tendering and subcontracting works. • Past associations include APSEB, Spectra Engineering Co., Indure Pvt Ltd. Mr. Umesh Mehta (Chief Techno Commercial Officer) • 40+ years experience in Procurement for Mega Operations & Projects • Previous associations include Vedanta Ltd., Sterile Industries, Vaaman Engineers (I) Ltd. Mr. K Ajay Kumar (ED – O&M Non-Board) • 23+ years experience in Operation & Maintenance, Business Development • Previous associations include Indwell Constructions Mr. Nani Aravind Nallamothu, Chief Financial Officer • 22+ years of experience in Infra structure & Energy sector • Previous associations include IJM India Infrastructure Ltd, BSCPL Infrastructure Ltd, GMR Energy Limited, GKC Projects Ltd, Barclays bank PLC & ICICI Bank. Mr. S Kodandaramaiah (Director – BD Non-Board) • 40+ years experience in power and industry sector related to EPC, Construction, project management, Business Development • Previous associations include BHEL, GE Mr. Sibiram Swain – Vice President Project Management • 39 years of experience in power sector • He formerly worked as a Principle Engineer for Fichtner & BHEL, where he accomplished many significant projects. Mr. K Sekhar Babu (Vice President O&M) • 25+ years experience in the Power plant Construction Management and Operation & Maintenance.
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Financial Performance
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Quarterly Performance Analysis 17 Total Revenue Mix (Rs. Crores) Total Revenue Mix (%) 8 10 9 10 9 21 6 8 9 25 260 354 341 391 481 596 766 543 395 522 230 176 102 229 277 14 12 34 Q3 FY 24 Q4 FY 24 Q1 FY 24 Q2 FY 25 Q3 FY 25 Others Electrical O&M Civil Works Erection Works MDO 1% 1% 1% 1% 1%2% 0% 1% 1% 2% 23% 27% 34% 37% 36% 53% 58% 53% 38% 39% 21% 13% 10% 22% 20% 0% 0% 1% 1% 2% Q3 FY 24 Q4 FY 24 Q1 FY 24 Q2 FY 25 Q3 FY 25 Others Electrical O&M Civil Works Erection Works MDO
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Quarterly Performance Analysis EBITDA (Rs. Crores) & EBIDTA Margin PAT (Rs. Crores) & PAT Margin 18 141 160 123 134 160 12.67% 12.20% 12.10% 12.78% 11.87% Q3 FY 24 Q4 FY 24 Q1 FY 25 Q2 FY 25 Q3 FY 25 62 84 60 67 87 5.62% 6.50% 5.90% 6.43% 6.50% Q3 FY 24 Q4 FY 24 Q1 FY 25 Q2 FY 25 Q3 FY 25
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FY24 Performance 19 930 1,109 1,995 2,352 606 692 69 3,618 18 28 FY23 53 FY24 Others Erection Works Civil Works Electrical O&M* 26% 26% 55% 56% 17% 16% 2%0% FY24FY23 1%1% Total Revenue Mix (Rs. Crores) EBITDA (Rs. Crores) PAT (Rs. Crores) **Total Revenue Mix (%) *High Margin Service Segment; ** PAT after Minority Interest 421 524 0 50 100 150 200 250 300 350 400 450 11.6% FY23 12.4% FY24 4,234 209 248 0 50 100 150 200 FY23 FY24 5.8% 5.9%
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Consolidated Profitability Statement 20 Particulars (Rs. in Cr) Q3FY25 Q3FY24 YOY 9MFY25 9MFY24 YOY Revenue from Operations 1338 1108 21% 3381 2905 16% Other Income 9 7 28 17 Total Revenue 1347 1115 21% 3409 2922 17% Material Consumed 211 118 528 358 Contract Execution Expenses 783 698 1924 1743 Employee Cost 172 146 478 418 Other Expenses 21 12 62 40 EBITDA 160 141 13% 417 364 15% EBITDA Margin 11.87% 12.66% -79bps 12.22% 12.45% -23 bps Depreciation 14 11 40 32 EBIT 146 130 13% 377 332 14% EBIT Margin 10.83% 11.62% -79bps 11.05% 11.36% -30bps Finance Cost 25 23 66 68 Share of profit of Associates 0 -1 -1 -4 Profit before Tax 121 105 15% 310 260 19% PBT Margin 9.01% 9.44% -43bps 9.10% 8.90% 20bps Tax 34 43 92 96 PAT 87 62 218 164 Minority Interest 5 1 9 1 PAT after Minority Interest 82 61 34% 209 164 28% PAT Margin % 6.09% 5.50% 59bps 6.14% 5.60% 54bps EPS 25.94 19.74 66.18 54.10
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Historical Performance Total Revenue Mix (Rs. Crores) 518 566 647 661 805 930 1,109 617 687 1,291 1,995 2,352 648 744 749 446 521 606 692 Axis Title FY24 104 FY18 843 FY21FY19 18 FY20 86 2,728 93 FY22 69 FY23 14 5327 1,555 2,275 2,174 1,900 3,618 343 18 EBITDA (Rs. Crores) & EBITDA Margin PAT** (Rs. Crores) & PAT** Margin Erection Works Electrical Civil Works O&M* Others 209 305 280 58 303 421 524 0 100 200 300 400 FY21FY19FY18 FY20 FY22 FY24FY23 79 122 131 -46 139 209 248 -50 0 50 100 150 200 FY18 FY20FY19 FY23FY21 FY22 FY24 33% FY24 1%1% 22% FY18 42% 37% 25% 3% FY19 34% 28% 30% 7% 1% 17% FY21 5% FY20 23% 36% 47% 35% FY23 19% 30% 1% FY22 55% 26% 2% 0% 33% 16% 56% 26% 1% Revenue Mix (%) 21 13.4 % 13.4 % 12.9 % 3.1% 11.1 % 5.1% 5.3% 6.0% -2.4% 5.1% *High Margin Service Segment; ** PAT after Minority Interest 11.6 % 5.8% 12.4 % 5.9% 3511 147 20 18 2% 5% 1% 1% Due to Covid-19, FY 21 figures do not represent normal operations and are not strictly comparable 4,234
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Consolidated Profitability Statement 22 Due to Covid-19, FY 21 figures do not represent normal operations and are not strictly comparable Profit and Loss (Rs. in Cr) FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Revenue from Operations 1,338 1,548 2,261 2,165 1,884 2,711 3,601 4206 Other Income 8 7 14 9 16 17 17 28 Total Revenue 1,346 1,555 2,275 2,174 1,900 2,728 3,618 4234 Material Consumed 122 188 330 312 270 335 519 625 Contract Execution Expenses 793 815 1,215 1,230 1,224 1,633 2,093 2448 Employee Cost 227 312 393 325 322 423 543 573 Other Expenses 31 31 33 27 26 34 43 64 EBITDA 174 209 305 280 58 303 421 524 EBITDA Margin 12.9% 13.4% 13.4% 12.9% 3.1% 11.1% 11.6% 12.4% Depreciation 41 43 46 39 36 37 43 44 EBIT 133 166 259 241 22 266 378 480 EBIT Margin 9.9% 10.7% 11.4% 11.1% 1.2% 9.8% 10.4% 11.3% Finance Cost 33 36 55 74 79 79 90 94 Share in Profit/(loss) in JV and Associates 1 0 2 2 -3 -2 -8 -4 Profit before Tax 100 130 206 168 -60 185 280 382 Profit before Tax Margin 7.5% 8.4% 9.0% 7.7% -3.2% 6.8% 7.7% 9.0% Tax 36 39 62 37 -11 46 73 133 PAT 65 91 143 131 -49 139 207 249 Minority Interest 0 11 22 0 3 0 -2 1 PAT after Minority Interest 65 79 122 131 -46 139 209 248 PAT Margin % 4.8% 5.1% 5.3% 6.0% -2.4% 5.1% 5.8% 5.9% EPS 43.96 54.01 82.69 89.24 -31.00 94.48 141.26 162.28
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Consolidated Balance Sheet 23 Assets (Rs. in Cr) Mar-23 Mar-24 Non - Current Assets 573 673 Property Plant & Equipments 182 223 CWIP 3 11 Right-of-Use Assets 4 6 Goodwill 0 0 Other Intangible Assets 2 3 Financial Assets (i) Investments 36 36 (ii) Loans 0 0 (iii) Other Financial Assets 332 375 Deferred Tax Assets 12 9 Other Non Current Assets 2 10 Current Assets 2,481 2896 Inventories 147 122 Financial Assets (i) Investments 0 1 (ii) Trade Receivables 894 1040 (iii) Cash 44 52 (iv) Bank 127 428 (v) Loan 5 4 (vi) Other financial assets 678 832 Income Tax Assets 60 0 Other Current Assets 526 417 Total Assets 3,054 3569 Equity & Liabilities (in Rs. Cr) Mar-23 Mar-24 Total Equity 1,277 1840 Share Capital 15 16 Reserves & Surplus 1,261 1,822 Non-Controlling Interest 1 2 Non-Current Liabilities 208 320 Financial Liabilities (i) Borrowings 26 46 (ii) Other Financial Liabilities 87 116 (iii) Lease Liabilities 1 2 Provisions 4 5 Other Non Current Liabilities 90 151 Current Liabilities 1,569 1,409 Financial Liabilities (i) Borrowings 449 345 (ii) Trade Payables 749 720 (iii) Lease Liabilities 0 2 Other Financial Liabilities 134 144 Other Current Liabilities 236 185 Provisions 1 1 Current tax Liabilities 0 12 Total Equity & Liabilities 3,054 3,569
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Consolidated Cashflow Statement 24 Particulars (Rs. in Cr) Mar-23 Mar-24 Net Profit Before Tax 280 382 Adjustments for: Non -Cash Items / Other Investment or Financial Items 131 92 Operating profit before working capital changes 411 474 Changes in working capital -155 -198 Cash generated from Operations 256 276 Direct taxes paid (net of refund) 74 72 Net Cash from Operating Activities 182 204 Net Cash from Investing Activities -91 -373 Net Cash from Financing Activities -120 176 Net increase/ (Decrease) in Cash and Cash equivalents -29 7 Add: Cash & Cash equivalents at the beginning of the period 73 44 Cash & Cash equivalents at the end of the period 44 51
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Strong Order Inflow 2,771 1,952 4,638 13,525 8,479 39,197 4,242 Upto 31st Dec FY 25 FY22 *FY19 FY20 FY 24 **FY21 FY23 Rs. Crores 0.0% 68.7% 6.5% 24.8% O&M Civil & Other WorksErection MiningElectrical Works 16.3% 18.0% 0.0% 65.7% 0.0% 33.8% 36.4% 29.8% 24.7% 35.4% 12.6% 27.2% 10.5% 89.5% Power Non Power 42.1% 57.9%83.2% 16.8%42.3% 57.7% 88.1% 11.9% 25 *Include MDO contract of Rs. 9,294 crores (executable over 25 years) **Include MDO contract of Rs. 30,337 crores, execution considered up to Dec 24 (executable over 28 years) 13.6 % 86.4 % 68.8% 27.0% 3.4% 0.8% 3.1 % 6.9 % 2.2% 10.2% 77.7 % 24.6 % 52.9 % 0.0 % 22.5 % 89.3 % 10.7 %
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Order Back Log 4,783 4,575 7,333 18,149 23,027 57,053 57,915 FY19 FY 24*FY20 FY22 *FY21 FY23 * Upto 31st Dec, FY 25* Rs. Crores 9.1% 51.2% 6.9% 32.2% Erection Electrical WorksO&M MiningCivil & Other Works 15.9% 2.9% 48.9% 32.3% 21.8% 6.5% 26.8% 44.9% 20.6% 46.5% 9.3% 23.7% 19.8% 80.2% Non PowerPower 66.0% 34.0% 70.5% 29.5% 68.8% 31.2% 26 78.78% 21.22% *Include 2 MDO contracts of Rs. 39,635 crores (executable over 25 years) 11.3% 69.57% 13.7% 3.85% 1.63% 11.84 % 5.58% 1.53% 12.62 %68.43 % 23. 83% 76. 17% 0.7% 29.9%40.4% 26.6% 0.5% 2.6% 39.7% 60.3%
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Contact Us For further information, please contact: Thank You Company CIN: L74140TG1999PLC032156 CS Mr. M.Raghavendra +91-40-30444418 / +91 9948041312 Email: cs@powermech.net www.powermechprojects.com 27