Sanghvi Movers MD Expects Strong Order Book To Drive Growth In Second Half Of FY25

Crane rental services provider Sanghvi Movers Ltd. is expected to see a recovery in growth in the remaining quarters for the current financial year, backed by a strong order book and rise in demand for cranes.

The company is well-positioned to maintain its revenue guidance of Rs 950-Rs 1,000 crore in the financial year 2025, said Managing Director Rishi Sanghvi.

“Looking forward, we believe that the second half of the financial year is where the demand for cranes is going up. All sectors—wind, steel, cement, hydro chemicals, rail, bridges—will pick up in the second half of the (financial) year,” Sanghvi told NDTV Profit.

“We also expect to maintain an average blended yield of 2% through FY25,” he added.

The order book of Sanghvi Movers already stands at Rs 750 crore and there are still seven months left to build on that, the top executive said. Therefore, the revenue guidance of Rs 950-Rs 1,000 crore in fiscal 2025 is maintainable.

“We expect to maintain the same blended average Ebitda, which we have given guidance (for)—of around 50%,” Sanghvi added.

There is tremendous order visibility and enquiry pipeline for the company right now. 

“From the wind energy sector, there is a 10-gigawatt worth of enquiries that we are having right now. All private power producers are in touch with us and the scale of the enquiries is vast. Thermal power, cement, steel, petrochemicals, hydrocarbons, civil infrastructure projects are all contributing to a very healthy enquiry pipeline. Going forward, we are well-poised to capitalise on that enquiry pipeline and build up our order book,” he said.

Sanghvi Movers reported a consolidated net profit of Rs 40.5 crore in the first quarter, down 3.1% compared to the corresponding period in the preceding financial year. Ebitda also dropped 15.66% year-on-year to Rs 74.3 crore. However, the company’s revenue was up by 3.1% at Rs 151 crore.

Explaining the reasons behind the company's muted Q1 results, Sanghvi said, “A couple of things are happening in the economy. Firstly, there was the general election for which there was a slowdown. Both public sector and private sector capex took a hit in the first quarter. In fact, Q1 had a lower GDP growth rate as was expected.”

“Besides that, there has been an early onset of monsoon, which has slowed down the project execution and offtake on site,” the top executive added. 

Slowing down of projects means that the demand for cranes would go down affecting players like Sanghvi Movers, which is the first crane rental company in India.

Sanghvi said that the muted financial scenario will continue in the second quarter, especially due to the slowdown because of monsoons. However, things are poised to look better moving ahead.

The second part of the financial year will also see an increased demand for cranes. He said that capacity utilisation of cranes will move upwards of 80% during this time.