Table of content
Lakshya Powertech Introduction
Lakshya Powertech Limited is an engineering consultancy and contracting company established in 2012. Initially starting as a freelance consultancy focused on power generation, the company has expanded its services to include operations and maintenance (O&M) for gas and oil-based power generation projects. Lakshya Powertech operates in four main sectors:
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Brief about Lakshya Powertech
Summary of the business of Lakshya Powertech
Company established in the year 2012, started as an Engineering Consultancy and Contracting Company, distinguished for its expertise in Mechanical and Electrical services. We embarked as a freelancing consultancy in power generation and our Company rapidly transitioned into a multifaceted entity with a robust expansion into Operations and Maintenance (O&M) for Gas Power Generation. We strategically expanded operations by delving into significant Power Generation Projects, a move that was strengthened by entry into the Oil and Gas sector. This diversification not only broadened the scope of our services but also solidified our position in the industry. Our global reach was further established through an Engineering, Procurement, and Construction (EPC) Contract in Renewables in Malaysia, and growth extended into the Operations and Maintenance (O&M) of Oil and Gas facilities.
History of Lakshya Powertech
Company was originally incorporated as “Lakshya Powertech Private Limited” as a private limited company under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated July 20, 2012 issued by Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Further, our Company was converted from a private limited company to public limited company pursuant to special resolution passed in the Extra-Ordinary General Meeting of the company dated March 09, 2024 and consequently, the name of our Company was changed from “Lakshya Powertech Private Limited” to “Lakshya Powertech Limited” and a fresh certificate of incorporation dated June 13, 2024 was issued to our Company by the Registrar of Companies, Ahmedabad. The Corporate Identification Number of our Company is U74900GJ2012PLC071218.
Promoters & Board of Directors of Lakshya Powertech
- Promoters of Company are Mr. Rajesh Anne and Ms. Priya Bandhavi Anne
Board of directors of Lakshya Powertech
| Name | Designation |
| Rajesh Anne | Chairman and Managing Director |
| Priya Bandhavi Anne | Whole-time Director |
| Lakshminarayana Eleswarapu | Whole-time Director |
| Amit Kumar Agrawal | Whole Time Director and Chief Financial Officer |
| Raghurama Raju Alluri | Non-Executive Director |
| Chintan Rajeshbhai Shah | Independent Director |
| Kunal Kumar Ghosh | Independent Director |
| Shailesh C Desai | Independent Director |
Share Holding pattern of Lakshya Powertech
| Name of the Shareholders | % of Holding |
| Promoter | |
| Rajesh Anne | 43.50% |
| Priya Bandhavi Anne | 53.31% |
| Promoter Group | |
| Gopala Rao Anne | 0.03% |
| Public | 3.16% |
Strength of Lakshya Powertech
- Experienced Promoters and Management Team;
- Long standing relationships with customers;
- Efficient operational team;
- Consistent financial performance;
Industry Outlook
India Power EPC Market – Overview
The India power EPC market refers to the sector in India that involves the Engineering, Procurement, and Construction (EPC) of power generation and distribution infrastructure. This market encompasses the planning, design, procurement of equipment and materials, and the construction of power plants, electrical grids, and related facilities necessary for the generation and distribution of electricity in India. It is a crucial sector that plays a vital role in meeting the energy needs of the country and is characterized by various technologies and sources, including conventional thermal power, renewable energy sources, and other innovative solutions. The India power EPC market involves a wide range of projects aimed at ensuring a reliable and efficient power supply to meet the growing energy demands of the nation.
India Power EPC Market Outlook 2031:
- India power EPC market is on the verge of significant changes that has redefined the industry outlook. Power sector in India is one of the most diversified in the world, sources of power generation include conventional sources such as coal, natural gas, oil, lignite, nuclear power, and non-conventional sources such as solar, wind, and biomass.
- In 2018, India ranked fourth in wind power and fifth in renewable power installed capacity. India made significant investments in clean energy which is estimated at USD 90 billion and is only country among the G20 nations that is on track to achieve the targets under the Paris Agreement.
- India power EPC market has attracted significant foreign direct investments (FDI) in the past two decades which is anticipated to be more than USD 15 billion accounting for 3% of total FDI inflow. There is a considerable interest from government of India in the power sector which has led to more focused approach in promoting sustained industrial growth in the recent years.
- Electricity production was estimated at 1,252.72 billion units (BU) in FY20c and total installed capacity of power stations in India was recorded at 380 GW as of January 2021.
- According to Central Electricity Authority (CEA) the share of renewable energy generation would increase from 18% to 44% by 2029-30 and thermal is expected to see reduction from 78% to 52%. The government of India plans to establish renewable capacity if 500 GW by 2030 and has allocated USD 1.4 trillion under the National Infrastructure Pipeline for FY 2019-25. India’s power consumption showed a considerable increase to 50.15 billion units (BU) in the year 2020, direct result of growing economic activity.
India Power EPC Market Trends, Drivers, Restraints, and Opportunities
- Increasing initiatives from government of India in a bid to promote sustained industrial growth and achieve clean energy transition are projected to drive the market growth during the forecast period.
- Rapid growth of the power related projects such solar and wind power parks are major factors boosting the market expansion in the coming years.
- High cost of service and high maintenance related to power grids due to inadequate infrastructure are anticipated to restrict the market growth.
- Lack of power grid penetration across various regions of the country present as major challenge that can hamper the market expansion in the coming years.
- R&D investment, technological advancement, introduction of new renewable power sources, and various government initiatives are expected to create immense opportunities for the market players.
RENEWABLES ENERGY MARKET IN INDIA
- The International Energy Agency’s World Energy Outlook projects a growth of renewable energy supply to 4,550 GW in 2040 on a global basis.
- Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 15.4% between FY16 and FY23. India has 125.15 GW of renewable energy capacity in FY23.
- As of November 2023, 43.9% of the total power installed capacity is from non-fossil- based sources, which fulfils the target of 40% by the end of 2022.
- The country plans to reach 450 GW of installed renewable energy capacity by 2030, with 280 GW (over 60%) expected from solar power.
Rising power demand
- India’s ambitious renewable energy goals are transforming its power sector. The rising population and widespread electrification in rural homes are fuelling the demand for energy to power homes, businesses and communities.
- The Central Electricity Authority estimates India’s power requirement to grow to reach 817 GW by 2030.
- India’s power consumption rose by 8.4% to 139 billion units in July 2023.
- The peak power demand in the country stood at 243.27 GW on November 30, 2023.
- India’s electricity consumption grew nearly 80% to about 847 billion units (BU) in the first half of this fiscal year from April to September, showing an uptick in economic activities in the country.
- India has an electricity-GDP elasticity ratio of 0.8. Thus, 7% growth in energy supply will be required if India is to grow at 8%. This shows that electricity will continue to remain a key input in India’s GDP growth
Huge untapped potential
- India is estimated to have renewable energy potential of 900 GW from commercially exploitable sourcesSolar energy: 750 GW;
- Wind power 1: 102 GW;
- Bio-energy: 25 GW; and
- Small Hydro: 20 GW.
- The country plans to reach 450 GW of installed renewable energy capacity by 2030, with 280 GW (over 60%) expected from solar power.
- India had a fully renewable energy capacity of 132.69 GW, including 72.31 GW of solar power and 44.56 of wind power, as of November 30, 2023.
- In India, there is an estimated potential of about 8,000 MW of tidal energy.
- Around 15,000 MW of wind-solar hybrid capacity is expected to be added between 2020-25.
- According to a new report by GWEC and MEC Intelligence (MEC+), between 2021 and 2025, India is expected to install ~20.2 GW of wind power capacity, an increase of ~50% compared with the 39.2 GW wind power capacity installed in the country in 2020-21.
Increasing investments, FDI inflows and M&As
- India’s liberal foreign investment policy permits 100% FDI in the renewable energy sector.
- The International Renewable Energy Agency (IRENA), in partnership with the Indian G20 Presidency, launched a new report on how low-cost finance can accelerate the energy transition.
- In November 2023, AmpIn Energy Transition announced an investment of Rs. 3,100 crore (US$ 372.6 million) to establish renewable energy projects exceeding 600 MW and an integrated manufacturing facility for solar cells and modules across the Eastern region. The funding will be focused in West Bengal, Bihar, Odisha, Jharkhand, Chhattisgarh, and the Northeastern States.
- In February 2023, IREDA announced to establish an office in Gujarat’s GIFT city to finance renewable energy projects in foreign currency.
- Ayana Renewable Power Pvt Ltd (Ayana) announced plans to set up renewable energy projects totaling 2 gigawatts (GWs) with an investment of Rs. 12,000 crore (US$ 1.53 billion) in Karnataka.
- In February 2022, Husk Power Systems, a renewable energy company working towards rural electrification, secured a US$ 4.2 million loan from the Indian Renewable Energy Development Agency (IREDA).
- In February 2022, Virescent Renewable Energy Trust (VRET), a renewable energy infrastructure investment trust, raised US$ 87 billion through a domestic bond issuance.
- In December 2021, India’s largest energy provider, Tata Power, was awarded a contract by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to set up a 300 MW wind-solar hybrid power plant.
- In October 2021, the UAE announced investment of US$ 75 billion in India and collaborate on clean energy projects.
- In October 2021, Adani Green Energy acquired SB Energy India for Rs. 26,000 crore (US$ 3.5 billion), making it India’s biggest renewable sector M&A deal.
- In August 2021, Copenhagen Infrastructure Partners (CIP) signed an investment agreement with Amp Energy India Private Limited, to facilitate joint equity investments of more than US$ 200 million across Indian renewable energy projects.
Business Data of Lakshya Powertech
Verticals of Lakshya Powertech
- Engineering, Procurement, and Construction (EPC) services
- Integrated Operation & Maintenance
- Special services
Product wise break-up of Lakshya Powertech
(₹ in Lakhs except %)
| Particulars | March 31,2024 | % Revenue Mix FY24 | March 31,2023 | % Revenue Mix FY23 | March 31,2022 | % Revenue Mix FY22 |
| Engineering, Procurement, and Construction (EPC) services | 6,475.78 | 43.72% | 694.22 | 13.09% | 168.76 | 4.94% |
| Integrated Operation & Maintenance | 7,876.56 | 53.17% | 3617.2 | 68.19% | 3241.18 | 94.93% |
| Special services | 461.12 | 3.11% | 993.18 | 18.72% | 4.39 | 0.13% |
Revenue contribution from Geography presence of Lakshya Powerte
| States | % Revenue bifurcation for FY 2023-24 |
| Gujarat | 10.22% |
| Maharashtra | 14.79% |
| Dadra & Nagar Haveli | 0.08% |
| Andhra Pradesh | 4.90% |
| Tamil Nadu | 0.60% |
| Uttar Pradesh | 3.34% |
| Jharkhand | 43.48% |
| Assam | 0.05% |
| Rajasthan | 22.17 |
| Haryana | 0.04% |
Customer concentration of Lakshya Powertech
(₹ in Lakhs)
| Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Top 5 customers | 10,682.67 | 2583.90 | 2435.85 |
| Top 10 customers | 12,559.80 | 3792.67 | 3054.68 |
Machinery/Plants/Factory of Lakshya Powertech
- Registered Office
- A-620 & 621 Siddhivinayak Tower – A, B/H DCP Office, Off. S.G. Highway, Makarba, Jivraj Park, Ahmedabad, Ahmadabad City, Gujarat, India, 380051
- Corporate Office:
- 401 Primark Raghavendra Nilayam, Raghavendra Nagar Kondapur, K.V. Rangareddy, Serilingampally, Telangana, India, 500084
- Workshop Facility:
- Survey No. 38/1, Near Dhamatvan Village, B/H. Ambaji Temple, Vanch- Dhamatvan Road, Taluka – Daskoi, Ahmedabad, Gujarat 382433
Peer companies comparison of Lakshya Powertech
(₹ in Lakhs except % , Ratios)
| Name of the Company | CMP | Basic EPS (₹) | Diluted EPS (₹) | Face Value (₹) | P/E Ratio | RoNW (%) | Total Income (₹ in Lakhs) |
| Lakshya Powertech | 180 | 20.74 | 20.74 | 10 | 8.68 | 46.71% | 14,941.92 |
| Peer Group | |||||||
| Asian Energy Services Limited | 270.65 | 6.64 | 6.48 | 10 | 41.77 | 9.19% | 31,128.48 |
| Engineers India Limited | 201.95 | 7.92 | 7.92 | 5 | 25.5 | 19.74% | 3,50,002.30 |
SWOT ANALYSIS of Lakshya Powertech
- Strengths
- Extensive Expertise: Lakshya Powertech has significant expertise in project management, particularly in power generation, oil and gas, and renewable energy sectors.
- Strong Order Book: The company has a solid order book with orders worth approximately Rs 265 crore as of August 31, 2024.
- Diversified Services: Lakshya Powertech offers a range of services including EPCC, integrated O&M services, and special services, ensuring comprehensive project solutions.
- Global Presence: The company has expanded its global footprint by securing an EPC contract in Malaysia.
- Weaknesses
- Sector Dependence: The company’s operations are heavily dependent on specific sectors like power generation, oil and gas, which can be vulnerable to sector-specific risks.
- Negative Cash Flows: Lakshya Powertech has experienced negative cash flows from operating, investing, and financing activities in recent years.
- Non-Compliance: There have been instances of non-compliance with certain provisions of the Companies Act, 2013.
- Opportunities
- Growth in Renewable Energy: The renewable energy sector is growing, and Lakshya Powertech can capitalize on this trend by securing more contracts in this area.
- Technological Advancements: Investing in new technologies can improve efficiency and competitiveness in project execution.
- Strategic Partnerships: Forming partnerships with other companies can help expand the company’s service offerings and market reach.
- Threats
- Economic Downturns: Economic instability can affect project funding and demand for services, impacting revenue.
- Regulatory Changes: Changes in environmental and safety regulations can increase compliance costs and affect project timelines.
- Raw Material Price Volatility: Fluctuations in the prices of raw materials can impact project costs and profit margins.
Business risk factors of Lakshya Powertech
- projects are awarded through the competitive bidding process by government authorities/bodies and Private Companies. We may not be able to qualify for, compete and win future projects, which could adversely affect our business and results of operations.
- Lakshya Powertech rely on our in-house designing and engineering team for project execution. Loss of employee(s) may have an adverse effect on the execution of our projects.
- Increase in the prices of raw materials and labour could have an adverse effect on our business, results of operations and financial condition.
- Lakshya Powertech have had negative cash flows from Operating, investing and financing activities in the past and a consequent net decrease in cash and cash equivalents in some of the recent years.
- Lakshya Powertech business is dependent on a few of our clients who contribute to significant of revenues from operations. Any loss of business from them may adversely affect our revenues and profitability.
- Lakshya Powertech top 05 clients contributed nearly upto 70.88%, of our aggregate revenues for the financial year ended on March 31, 2024, as per our restated financial statements.
Financials of Lakshya Powertech
Key Performance Indicators of Lakshya Powertech
(₹ in Lakhs except % , Ratios)
| Key Performance Indicator | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue from Operations | 14,813.46 | 5,304.52 | 3,414.33 |
| Total Income | 14,941.92 | 5,311.21 | 3,421.39 |
| EBITDA | 2,318.64 | 477.67 | 201.70 |
| EBITDA Margin (%) | 15.65 | 9.00 | 5.91 |
| Net Profit for the Year/Period | 1,495.24 | 271.09 | 104.58 |
| PAT Margin (%) | 10.09% | 5.11% | 3.06% |
| Return on Net Worth | 77.43% | 51.59% | 30.98% |
| Return on Capital Employed | 37.00% | 20.54% | 17.42% |
| Debt-Equity Ratio | 0.91 | 2.19 | 1.51 |
Assets & Liabilities of Lakshya Powertech
(₹ in Lakhs)
| Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| EQUITY AND LIABILITIES | |||
| Shareholders Funds | 3201.18 | 660.98 | 389.89 |
| Non – Current Liabilities | 263.77 | 684.73 | 125.8 |
| Current Liabilities | 4,781.36 | 1989.14 | 1243.2 |
| TOTAL | 8,246.31 | 3,334.85 | 1,758.89 |
| ASSETS | |||
| Non Current Assets | 1026.21 | 297.19 | 282.88 |
| Current Assets | 7220.1 | 3037.66 | 3234.9 |
| TOTAL | 8,246.31 | 3,334.85 | 1,758.89 |
Profit & Loss of Lakshya Powertech
(₹ in Lakhs)
| Metric | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue from Operations | 14,813.46 | 5,304.52 | 3,414.33 |
| Total Income | 14,941.92 | 5,311.21 | 3,421.39 |
| EBITDA | 2,318.64 | 477.67 | 201.70 |
| EBITDA Margin (%) | 15.65 | 9.00 | 5.91 |
| Net Profit for the Year/Period | 1,495.24 | 271.09 | 104.58 |
| PAT Margin (%) | 10.09% | 5.11% | 3.06% |
Cash Flow of Lakshya Powertech
(₹ in Lakhs)
| Particulars | 2024 | 2023 | 2022 |
| Net Cash from/(used in) Operating Activities | (2,211.32) | (645.16) | (139.48) |
| Net Cash from/(used in) Investing Activities | (58.82) | (130.25) | (65.24) |
| Net Cash from/(used in) Financing Activities | 2,271.39 | 806.55 | 81.46 |
Capital structure of Lakshya Powertech
| Particulars | Pre Issue |
| Borrowings | |
| Short term debt | 2,636.27 |
| Long Term Debt | 263.77 |
| Total debts | 2,900.04 |
| Share holder’s fund | |
| Share capital | 831.11 |
| Reserve and surplus – as Restated | 2,370.07 |
| Total share holder’s fund | 3,201.18 |
| Long term debt / shareholders funds | 0.08 |
| Total debt / shareholders funds | 0.91 |
IPO Details
Lakshya Powertech IPO Details
| Feature | Details |
|---|---|
| IPO Type | Book Built Issue |
| Issue Size | ₹49.91 Crores (Fresh Issue) |
| Price Band | ₹171 – ₹180 per share |
| Face Value | ₹10 per share |
| Minimum Order Quantity | 800 Shares |
| Listing | NSE SME |
| Open Date | October 16, 2024 |
| Close Date | October 18, 2024 |
| Listing Date | October 23, 2024 (Tentative) |
Object of the issue
| Particulars | Estimated amount |
| Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our company | Upto 500.00 |
| Funding of the working capital requirement of our Company | Upto 3000.00 |
| General corporate purposes | [●] |
Litigation involved in Lakshya Powertech
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