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Earnings Call Transcript

South West Pinnacle Exploration Earnings Call Transcript: Key Takeaways

Q2 weak (~₹58 Cr revenue, 14.38% EBITDA margin) on monsoon, maintenance and diesel costs. H1 revenue up 16.3% on a record ₹767 Cr order book. Management repeats its FY27 15-20% growth target with hedging and deflects promoter stake-sale questions.

South West Pinnacle Exploration Q2 FY27 concall: date, live audio and summaryConcall page →
Guidance and delivery
Management target Revenue FY27
Highlights
Revenue growthH1 revenue up 16.3% YoY to ₹119 Cr; Q2 subdued, ~₹58 Cr.
MarginsQ2 EBITDA margin 14.38%; H1 19.43%; diesel and input costs pressured margins.
Order book₹767 Cr, ~77% private, ~23% government sector.
Demand visibilityRecord order book ₹767 Cr; expects further order inflow in 2-3 months.
Management confidenceBalanced-to-optimistic; repeats 15-20% FY27 target, hedges with 'range'.

Growth

H1 revenue +16.3% YoY to ₹119 Cr; H1 PAT +23% to ₹13 Cr. Q2 revenue and margin fell sharply, so H1 growth rests on Q1.

Outlook

FY27 revenue target 15-20%, with the higher end not promised. Jharkhand coal production targeted FY29. Oman JV mining expected in 2-3 years.

Risks

Promoter share sales (~26.6 lakh shares, ~₹59 Cr per analyst) deflected. Q2 margin pressure and rising employee costs persist.

Last quarter's promises, checked

Partly delivered

  • Order book 'should go up and up' from ₹761 Cr → ₹767 Cr, +0.8% (= PARTIAL)
  • 'Significant' FY27 growth, momentum to continue → H1 +16.3%, but Q2 ~₹58 Cr vs Q1 ₹62 Cr (= PARTIAL)

Missed

  • Margin 'should be maintained' from Q1 EBITDA 24.15% → Q2 14.38% (= MISS)
  • Debt-free if no added capex (debt ~₹15 Cr, D/E <0.39) → FY27 capex ₹50-60 Cr guided, condition failed (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: SOUTHWEST. Summary written with AI assistance from the document.

Read the document ↗

South West Pinnacle Exploration Ltd: key numbers

Share price
₹163.66
Market cap
₹534.4 Cr
Revenue (annual)
₹243.0 Cr
Net profit (annual)
₹33.03 Cr
P/E (TTM)
15.0×Sector 17.1×
Promoter holding
61.70%-3.11% QoQ
FII holding
0.48%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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