Patel Engineering (PATEN)
Patel Engineering (PATEN)
Patel Engineering (PATEN)
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FINANCIAL SUMMARY<br />
Sales and net profit to post steady rise<br />
<strong>Patel</strong> will have stable sales growth for next 2 years, but the revenue<br />
mix will change from low margin business to high margin business.<br />
From FY10 onwards, real estate business will start contributing to the<br />
top line. The net margins from the real estate would be around 25%<br />
and give overall margins of 14% on the net profit level. We expect<br />
sales to rise at a 22% CAGR from Rs 1,300 crore in FY07 to Rs 2,340<br />
crore in FY10E.<br />
Exhibit 19: Revenue mix<br />
2500<br />
2000<br />
1500<br />
1000<br />
500<br />
0<br />
Source: ICICIdirect Research<br />
FY09E FY10E<br />
Power Irrigation Transport Real estate<br />
Exhibit 20: Steady growth in sales and net profits<br />
2500<br />
2000<br />
1500<br />
1000<br />
500<br />
0<br />
Source: ICICIdirect Research<br />
FY08E FY09E FY10E<br />
Sales ( In Rs Cr) Net Profit Margin (%)<br />
14<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
0<br />
12 | P age<br />
From FY10, real estate business will start<br />
to contribute to the PEC top line, thus it<br />
will further improve the margins. Also<br />
multipurpose power contribution will<br />
increase relatively to irrigation and<br />
transport business
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