Detailed Narrative
Strong Financial Performance in Q3 and 9M FY25
Capacit'e Infraprojects reported robust financial results for Q3 and 9M FY25. For the nine months, revenue from operations grew 26% YoY to ₹1,678 crores, with PAT surging 120% to ₹151 crores, surpassing the company's highest ever yearly PAT. EBITDA margin for 9M FY25 improved to 18.7% from 17.9% in the prior year. Q3 FY25 saw revenue grow 23% YoY to ₹590 crores, and PAT increased 77% to ₹52 crores, despite a one-time📎 GST expense impacting Q3 EBITDA margin to 16.7%.
Robust Order Book and Strong Inflow Outlook
The company's standalone order book stood at ₹10,047 crores as of December 31, 2024, with public sector projects accounting for 63%. Fresh order intake for 9M FY25 (excluding MHADA) was ₹2,579 crores, including a significant ₹1,120 crore NBCC project in Q3. Management is confident of exceeding ₹3,000 crores in order inflows for FY25 and anticipates crossing ₹4,000 crores including MHADA projects. For FY26, the company has set an internal target of ₹4,000 crores for new order inflows.
Strategic Focus on High-Rise and Data Centers
Capacit'e Infraprojects continues to prioritize the super high-rise segment, with upcoming projects including a joint venture with Tata Projects for 10 towers of 300 meters each. In the data center market, the company has completed 11 data centers for BSNL and has two more under construction, expected to be handed over by April. The company is actively bidding for large data center projects, including those with hardware components, and aims to be a strong contender in this growing sector.
Working Capital and Receivables Management
The company's total receivables as of Q3 FY25 were ₹500 crores, with a target to improve collection by 15 days in the current quarter. Management emphasized that there are no payment delays from key clients like CIDCO and MHADA, as they have their own funding sources. The company has provided ₹210 crores for ECL and expects to recover ₹115-120 crores over the next 5-6 quarters, with at least ₹50 crores from asset monetization anticipated in the current quarter.
Capital Structure and Debt Outlook
Capacit'e Infraprojects maintains a healthy liquidity position with ₹80 crores in unencumbered cash. Fund-based limits are ₹190 crores (₹140 crores utilized), and non-fund-based limits are ₹1,000 crores (₹700 crores utilized), leaving ₹260 crores in available bank guarantee and LC limits. While gross debt levels are expected to remain similar in FY25, net debt is projected to fall by ₹100 crores in FY26. The company's finance cost for 9M FY25 was ₹72 crores, expected to decrease as a percentage of top line.
Outlook and Growth Guidance
The company projects a revenue growth of 25% for FY25 and a minimum of 25-30% year-on-year growth for the next 2-3 years. EBITDA margin is guided to be 17.5% plus (approximately 18%) for the full year, with EBIT expected to improve by at least 200 basis points. The company aims for Q4 FY25 execution to touch ₹700 crores. Billing from CIDCO is expected to be at least ₹85 crores per month in FY26, and MHADA billing at capacity level is targeted at ₹400 crores annually.