Detailed Narrative
Strong FY25 Performance Despite Q4 Margin Impact
Capacit'e Infraprojects delivered a historic performance in FY25, with total income growing 23% to ₹2,407 crores and PAT surging 69% to ₹204 crores. This success is attributed to prudent financial management and strong execution. However, Q4 FY25 saw a dip in EBITDA margin to 16.9% from 19.8% in Q4 FY24. This was primarily due to a new accounting policy implemented in Q4, where profit recognition on certain large EPC projects (NBCC, Maldives, Signature Global) is deferred until 10% of the contract is executed.
Robust Order Book and Inflow
The company secured ₹2,823 crores in new orders during FY25, contributing to a standalone order book of ₹10,545 crores as of March 31, 2025. The order book is diversified, with 68% from the public sector and 32% from the private sector. Management expressed confidence in continued growth, targeting a 25% year-on-year revenue increase as part of their Vision 2028. An internal target of ₹3,500 crores for order inflow has been set for FY26.
Working Capital Dynamics and Debt Reduction Targets
Trade receivables significantly increased from ₹548 crores to ₹1,080 crores, which management explained as a positive shift from Work-in-Progress (WIP) to certified debtors. They anticipate a reduction of ₹200-250 crores in debtors over the next 2-3 quarters. The company aims to reduce its net debt from the current ₹195 crores to ₹120-125 crores by the end of the year. Gross debt is expected to be around ₹334 crores by year-end, with ₹10 crores already repaid in April/May.
Project Updates and Execution Outlook
Work on MHADA projects is progressing, with 16 rehab buildings ongoing and 6 more starting in June. Two buildings are slated for delivery by June 10, and approval for 6 residential towers (90 stories each) has been received. CIDCO projects are also advancing, with two locations to be delivered by July and the remaining four by December 2026. Profit recognition for Maldives projects will start in Q1 FY26, for NBCC and Signature Global Phase 1 in Q2 FY26, and for Signature Global Phase 2 in Q4 FY26, aligning with the new accounting policy.
Capital Expenditure and Liquidity
Capex for the current financial year is expected to be similar to last year's under ₹60 crores, possibly increasing by ₹15-20 crores. However, there will be an additional ₹140 crores for temporary structures related to new projects. The company maintains healthy liquidity with ₹65-90 crores of free cash on its books and ₹150 crores in unutilized bank guarantee limits. Further limits of ₹260 crores are expected to be tied up in the next quarter. The cost of debt is anticipated to be stagnant or lower in FY26 due to reduced commissions on bank guarantees following the investment grade rating.
Other Income and Auditor Change
Q4 FY25 other income of ₹36 crores included a ₹12 crore write-back of bad debts and interest, along with ₹24.08 crores from scrap sales, fixed deposit interest, and reversal of excess provisions. This boosted Q4 EBITDA by approximately 2% and full-year EBITDA by 1%. The change in statutory auditor was confirmed to be a mandatory regulatory requirement after 10 years, with no other underlying reason.