SKIPPER LIMITED
Established in 1981, Skipper Limited is India’s largest manufacturer of Transmission & Distribution (T&D) structures and ranks among the top 10 globally. Its a backward-integrated powerhouse in the entire value chain, equipped with state of the art manufacturing facilities capable of producing over 3,00,000 MTPA, structure rolling and galvanizing facilities, a DSIR approved world-class R&D center, a Load Testing Station, and expertise in Transmission line EPC in India. The company has strategically diversified into sectors such as Telecom Towers, Railway Electrification Structures, Solar Structures, and Polymer Pipes & Fittings.
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The company with 2450+ employees, is India’s largest and world’s only Integrated T&D company having its own Structure rolling, manufacturing, Tower Load Testing Station & Transmission Line EPC. It is the largest manufacturer of T&D structures in India. Awarded as “Largest Tower Supplier” by PGCIL & “Best Industry in Water Resources sector” by Central Board of Irrigation and Power.
Manufacturing Strengths
3,00,000 MTPA Engineering capacity
62,000 MTPA Polymer capacity
Zero Machine downtime with four back-up units
7 In-house galvanizing plants
57 Angle and plate CNC lines
4 State-of-the-art manufacturing plants
Engineering Product Portfolio
1. Power Transmission lines and Towers
2. Power Distribution Poles
3. Monopoles
4. Telecom Towers
5. Railway Electrification structures
6. MS & High Tensile angles
7. Solar structures
8. Fasteners & Tower Accessories
Infrastructure Segment
Skipper manufactures various Power Transmission structures, Telecom Towers, and Railway Electrification Infrastructure. The Company undertakes EPC projects in these sectors across different regions, with expertise in live line operations, retro fitting, and power evacuation solutions. Specialized teams handle project management, inspection, construction, and live line stringing. Skipper offers pre and post-sales services, catering to diverse infrastructure firms. The portfolio consists of Tower EPC, Telecom EPC, Railway Electrification Infrastructure EPC, Water EPC.
Coating Services Segment
As the industry leader in applied coating and hot-dip galvanizing services, company specialize in providing solutions that improve product aesthetics, lifespan, and durability. Their coatings play a crucial role in preventing corrosion, enhancing steel products’ sustainability, and enabling their long-term use. With state-of-the-art galvanizing plants, they ensure the production of high-quality coatings that are renowned across the globe. In FY23, 72000 MT Galvanized Products were exported. The Product Portfolio consists of Galvanization of steel objects, Sandblasting/Shot Blasting, Liquid painting, Powder coating, Shot Blasting.
Towers and Monopoles Test Station
Skipper’s testing facility boasts the capability to test towers with capacities of up to 1,200 kV and heights of 120m (highest in the country), demonstrating their commitment to staying ahead in Towers and Monopoles Test Station at the forefront of cutting-edge technology. Moreover, the towers are designed with exceptional strength, with ability to handle up to 1,200 tones per leg and a large base width of up to 35m. These unique features allow them to consistently deliver innovative and customized tower solutions that optimism efficiency and performance for our valued clients.
Skipper USPs are :
– Towers upto 1200kV with 120m height (highest in the country) can be tested seamlessly
– Automated central loading and supervision system
– Dual-speed VFD Driven Electrical Winches
– Customized designs for optimum efficiency
– Exceptionally heavy towers can be loaded optimally (1200 T per leg) and large base width (up to 35m)
– Dedicated in-house R&D center allows study and upgradation of various Transmission Towers and Poles
Polymer Segment
Company is India’s largest and fastest-growing Polymer Pipes & Fittings manufacturers. Their range of CPVC plumbing pipes and fittings are manufactured with Durastream CPVC Compound sourced from world renowned Sekisui Chemicals Ltd, Japan. Manufacture 100% lead-free UPVC pipes and utilize cutting-edge extrusion machines and stringent quality control measures. Collaborating with EZ Weld, USA, company has introduced high-quality solvent cement in the Indian market. Largest PVC pipes manufacturer in West Bengal. With 62,000 MTPA Capacity, company has 30,000+ Retail sales touch points across the country and have Mahendra Singh Dhoni and Chris Gayle as brand ambassadors. The Product Portfolio consists of UPVC Pipes & Fittings, Agriculture Pipes, Bath Accessories, CPVC Pipes & Fittings, Borewell Pipes & Fittings, Tanks, SWR Pipes & Fittings, HDPE Pipes, CPVC Solvent Cement.
Achievements
Largest supplier to Power Grid Corporation of India Ltd for 3 consecutive years. Supplier of India’s first order of 800 kV Transmission Towers to PGCIL.
Exports to 55+ Countries with 80% y-o-y growth in revenue from exports. 20% of the total order book coming from exports. Exporting to South America Colombia, Peru Paraguay, Uruguay Chile, Bolivia, Trinidad & Tobago Panama, Brazil, Dominican Republic Europe Finland Africa Kenya, Egypt, Ghana, Nigeria, Zambia, Sierra Leone, Guinea, South Africa, Botswana, Burundi, Angola, Liberia, Tanzania, Togo, Mali, Uganda, Senegal, Niger, Malawi, Gambia, Benin, Cameroon, Mozambique, Rwanda, Central African Republic, Burkina Faso Middle East Qatar, Bahrain, Jordan, Saudi Arabia, UAE, Israel, Oman, Kuwait, Iraq South and South East Asia India, Nepal, Bangladesh, Sri Lanka, Indonesia, Philippines, Malaysia, Myanmar Oceania Australia New Zealand North America USA Canada.
Leading the telecom sector with sustained growth and efficient resource allocation, they have established themselves as one of the leaders in the Telecom sector. Their extensive engineering capacity supports the manufacturing of Telecom structures. Company has tied-up with Ramboll, one of the world’s leading tower design company. Established long-standing relationships with major telecom partners across India and other countries.
Awarded a prestigious contract by Bharat Sanchar Nigam Limited (BSNL). The contract entails supplying and erecting Ground Based Telecom Towers and acting as an Infrastructure as a Service Provider (IaaSP) for supply, installation and subsequent operation, and maintenance of infrastructure items in uncovered villages across India. This project aims to achieve 4G saturation and includes a 5-year contract with the possibility of a 5-year extension helping to advancement of connectivity in rural areas. The projects have a total contract value of approximately 2570 crores and will be executed under a capex and opex model over a span of 5 years.
Key Financial Highlights- H1 FY24
– Revenue from operations for H1FY24 stood at ₹ 13302 million against 8804 million last year, up 51 %
(YoY)
– PBT for H1FY24 at ₹ 518.44 million against 49.86 million last year, up 939 % (YoY). Entire FY23 PBT was
499.34 million.
– PAT for H1FY24 stood at ₹ 364.92 million against 24.25 million, higher by 1404 % (YoY)
– EPS for H1FY24 is ₹ 3.51 per share against 0.23 last year of a face value of ₹ 1 each
Consistent order inflows in the T&D business have led to a total order in-flow YTD of Rs. 2,727 crores, registering an impressive 220% growth over last year till date. A strong Engineering order book and a robust Bidding Pipeline in excess of Rs. 10,000 crores gives the company good visibility.
Growth Drivers and Outlook
• National electrification and load growth
• Power generation capacity multiplication
• Growing focus on green energy
• Grid modernization
• T&D infrastructure expansion
• Telecom industry extension
• Smart grid network spread
• Railways infrastructure development
Skipper is present in sectors which are critical for a nation’s progress. The government is creating a favorable ecosystem for domestic industries to grow and carve out a more significant share of the global pie. The company is expecting 25% CAGR revenue growth over the next 3 years. One of such steps by the Government is the restoration of the RoDTEP Scheme in engineering product business, which will boost export competitiveness and potentially improve operational performance. Further, the recent announcement of a transmission system plan for integrating 500 GW of renewable capacity is positive for the company. Company has a strong bidding pipeline of which nearly 65% comes from the export markets. Growing acceptance of India as an alternative to China and the proven track record of unmatched capabilities are expected to accelerate business growth in the international market. Actively collaborating with 150+ global EPC players to solidify their position in the global market. The efficacy of this approach has increased initial orders and inquiries from various countries, including USA, Germany, Spain, South Korea, Uruguay, Paraguay, Romania, Croatia, Mexico, Panama, Bolivia, Poland, Afghanistan, Russia, Australia, and Eastern/Western African countries.
Risk Management
1.The Company’s business may not be relevant in the coming years.
2.Decline in the quality of the products of the Company may lead to fall in sales.
3.Increased competition could affect profitability.
4.Dependence on any geography could impact Company’s performance owing to a slowdown in the particular geography.
5.An inability to mobilize debt funds at a low cost in an adequate quantum could impact viability.
6.Stretched working capital management could impact viability.
Sector: Industrials
Market Price: Rs. 245.40 as on today
Stock Name: Skipper LTD
BSE Code: 538562, NSE Code: SKIPPER
Segment: Heavy Electrical Equipment
Incorporation: 1981
Headquarters: Kolkata
