Strong Revenue and Net Profit Growth in Q1-Q3'23 for [Company Name], Despite Challenges; Backlog Dynamics and Future Outlook Explored
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Recent results
In Q1-Q3'23, the company generated revenue of PLN 409m (+50% y/y) and net profit of PLN 26.7m (+320% y/y). In Q3'23 alone, it was PLN 183m and PLN 9.7m (-12% y/y), respectively. Reported EBIT was negatively impacted by the filing of Zeus' bankruptcy petition (the subsidiary had a PLN -7m EBIT in Q3'23; Elektrotim indicates it no longer expects a negative impact). Q3'23 results were clearly better y/y and above our forecasts if we clear them for this event. At the end of Q3'23, the company reported a decline in working capital requirements q/q, allowing net debt to fall to PLN 5m.
Backlog
After Q3'23, the group's backlog amounted to PLN 474m. The backlog fell sharply q/q and y/y. The company anticipates that it may be under pressure until Q1'24 due to a slowdown in decision-making at public entities and companies around the election period. Possible winning of new perimeter contracts may help (the company has the most favourable offer for the section on the Bug River, and a smaller tender on the Svisloch River is also announced).
