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Sanghvi Movers Annual Report 2023 Summary

Updated: Oct 1, 2023

  • Sanghvi Movers Limited (SML) takes immense pride in its journey, which began in 1989 under the visionary guidance of its founder, Late Mr. Chandrakant P Sanghvi. As the largest crane rental company in India, Asia, and the sixth largest globally, Sanghvi Movers Limited commands a market share of over 40-45% in the domestic crane rental market and an impressive 60-65% in the high-end crane segment (>400 MT).

  • The company has a track record of successful projects both in India and internationally, encompassing infrastructure, airports, bridges, power plants, and offshore ventures including oil, gas, and wind installations.

  • SML maximized fleet utilization to bolster revenue and enhance profitability.

  • Prioritizing debt repayment strengthened SML's creditworthiness, reduced costs, and provided financial flexibility over growth-oriented investments.

  • Targeted investments in capacity building aligned SML's capital expenditures with evolving customer requirements.

  • Aggressive cost optimization bolstered SML's EBITA margins.

  • Expansion into new business avenues like EPC (Wind + Project) Business positions SML to capitalize on market potential, diversify service offerings, and broaden the customer base for sustainable long-term growth.

  • The post-COVID-19 economic reopening spurs demand for heavy equipment, including cranes, due to infrastructure projects.

  • The government's increased capital expenditure drives demand for heavy equipment, offering a profitable opportunity.

  • India's clean energy ambitions, particularly in wind power, create growth potential for crane rental services in wind turbine installation and maintenance.

  • Economic downturns could lead to reduced capital expenditures, impacting demand.

  • International competition poses challenges due to resource and expertise advantages of larger players.

  • Complex supply chains are vulnerable to disruptions from natural disasters, geopolitical tensions, or pandemics.

  • Automation and robotics could reduce demand for certain equipment.

  • In the financial year 2022-23, Sanghvi Movers Limited achieved remarkable growth: Revenue rose 30% to Rs. 48,555.35 Lakhs. EBITDA surged 64% to Rs. 28,661.13 Lakhs, driven by higher revenue and utilization. Cash Generation increased by 99% to Rs. 23,311.00 Lakhs, a 60% rise. PAT soared 381% to Rs. 11,204.07 Lakhs, reaching a record high. EPS surged 381% to Rs. 25.88 compared to Rs. 6.80. Capex invested Rs. 16,200 Lakhs in cranes and assets. Capacity Utilization averaged 82%, up from 76%. Order Book stood at Rs. 299 Crores as of May 4, 2023. Current Capacity: 394 hydraulic and crawler cranes, ranging from 20 to 1000 tonnes.

  • In fiscal year 2021-22, Sanghvi Movers established "Sanghvi Movers Vietnam Company Limited" for crane rental services. However, timing and capacity constraints led to missed opportunities, including partnerships with GE and Vestas.

  • Efforts to deploy cranes in Vietnam were hindered by high utilization in India. A COVID-19-related suspension was granted by the Vietnamese Government until December 2023.



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