Skipper Ltd is expecting to grow at a CAGR of over 25 per cent on a year-on-year basis for the next three years to touch a turnover of ₹4,000 crore backed by diversification into new geographies and addition of new product segments. The company, which has been growing at around 15 per cent for the last three years, clocked a total turnover of ₹1,980 crore in 2022-23.

Skipper has two main business verticals - engineering EPC and polymer divisions. Nearly 79 per cent of its revenue comes from engineering and power transmission and distribution business while the remaining 21 per cent comes from polymer business.

Renewable push

According to Sharan Bansal, Director, Skipper Ltd, there is a big push towards conversion to renewable energy worldwide including in India and this is leading to significant investments in transmission infrastructure. This is expected to augur well for the company as it expects a good demand both from domestic and international markets. The company closed last fiscal with a total order book of ₹4,500 crore. Of this, nearly 80 per cent is from the domestic market and the remaining 20 per cent is from exports.

“We bagged ₹2,500 crore worth order from BSNL in December 2022. The project is expected to be executed over a period of one-to-two years. There is a big push towards conversion to renewable energy and globally there is a demand for power transmission infrastructure. On the other side, in the telecom business more and more countries are moving towards 4G and 5G and this is likely to create a good demand. We are expecting healthy growth of around 25 per cent for the next three years,” Bansal said at a select media round table here on Monday.

Expanding horizon

The company is looking to get into newer markets for its engineering business division and is also on the lookout for rolling out more value added products in the near future. It is already present across 55 countries and plans to take it up to 70 countries by the end of this year. “We are planning to make deeper penetration into Africa, Middle East and South America,” he said.

The company, which forayed into the polymer business about nine years ago, currently has a turnover of around ₹400 crore from the segment. It is hoping to take it up to ₹1,000 crore in the next two-to-three years.

According to Bansal, the polymer business will clock a higher rate of growth since the base is still low. It is looking to strengthen its presence in the west and southern markets.

Q4 results  

The company registered 17 per cent drop in standalone net profit at ₹21 crore for the quarter ended March 31, against ₹25 crore in the same period last year.

Revenue from operations on standalone basis increased 19 per cent at ₹657 crore (₹553 crore) .

The profit was impacted due a mark to market (MTM) forex loss of ₹24 crore during the quarter under review, he said.

The company’s board has recommended a dividend of 10 per cent i.e 0.10 paise per equity share of face value of Re 1 each, for the financial year ended March 31, 2023.

The company’s scrip closed at ₹123.40, down 2.02 per cent on the BSE on Monday.