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    Ceigall India

    CEIGALL
    Construction·9 May 2025
    Management Summary

    Ceigall India reported a steady performance for Q4 and full year FY25, driven by a robust order book and strategic diversification into metros, railways, and underground projects. While the company faced challenges with land acquisition delays and increased contracting costs impacting Q4 margins, management expressed confidence in future growth, supported by a strong tender pipeline and upcoming HAM project completions that will generate annuity inflows.

    Highlights

    7

    • Consolidated revenue from operations for FY25 reached INR34,179 million, marking a 13.8% year-on-year growth.

    • Consolidated EBITDA for FY25 stood at INR4,995 million, with a margin of 14.6%.

    • Consolidated PAT for FY25 was INR2,866 million, achieving a margin of 8.4%.

    • The company's order book as of March 31, 2025, was robust at INR10,862 crores, reflecting a healthy 3.2x book-to-bill ratio.

    • Consolidated gross debt was INR13,967 million, with a net debt-equity ratio of 1.5x for FY25.

    • The net working capital cycle was 62 days as of March 31, 2025.

    • Q4 FY25 consolidated revenue grew 8.5% YoY to INR10,116 million, with EBITDA at INR1,279 million (12.6% margin) and PAT at INR724 million (7.2% margin).

    Key financials

    Metrics

    15

    Periods

    2

    Q4 FY25

    9
    • Consolidated Revenue from Operations
      10,116 Mn
      YoY+8.5%
    • Consolidated EBITDA
      1,279 Mn
    • Consolidated EBITDA Margin
      12.6%
    • Consolidated PAT
      724 Mn
    • Consolidated PAT Margin
      7.2%

    FY25

    6
    • Consolidated Revenue from Operations
      34,179 Mn
      YoY+13.8%
    • Consolidated EBITDA
      4,995 Mn
    • Consolidated EBITDA Margin
      14.6%
    • Consolidated PAT
      2,866 Mn
    • Consolidated PAT Margin
      8.4%

    Order Book

    high confidence

    Total Value

    ₹ 10,862 crores

    as of 2025-03-31

    quantified

    Composition

    Mix2 contract types
    • Elevated Roads, Highways, Specialized Structures, Flyovers, Tunnels85.3%
    • Railway, Metro13.3%

    Share of order book by contract type

    Pipeline

    qualified rfp

    Tenders worth INR70,000 crores in different verticals (metro, railway, water, irrigation, heavy products)

    Cancellations / Deferrals

    • cancelled:Delhi-Amritsar-Katra Expressway project removed from order book due to government's inability to provide land.

    "The order book is robust and diversified across segments and geographies, providing healthy revenue visibility. The company is actively bidding for new projects, especially in metros and other new verticals."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹15 crores

    Debt

    Gross ₹13,967 million · 1.5x EBITDA

    Liquidity

    Liquidity disclosed

    Net working capital cycle stood at 62 days as on 31 March 2025. Receivables (consolidated) are INR850 crores, with HAM debtors at INR268 crores. Contract assets increased to INR847 crores due to retention money (INR96 crores) and stuck payments from Bihar project (INR186 crores) under new NHAI policies.

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Revenue Growth
    10-15%
    		High
    Profitability
    Pure EPC EBITDA Margin
    11-12%
    		High
    Order Inflow
    Order Inflow Target
    INR5,500 crores
    		High
    Projects
    New HAM Projects Starting
    at least three more
    		High
    Equity Investment
    Equity Commitment for HAM Projects
    INR800 crores
    		High
    Equity Investment
    Equity Investment in FY26
    INR250 crores
    		Medium

    Appointed Date (AD) for new HAM projects

    Next quarter (Q1 FY26) for Ludhiana-Bathinda, soon for VRK 12.
    CurrentSouthern Ayodhya Bypass received AD. Ludhiana-Bathinda Package-2, VRK 11 & 12 awaiting.
    TargetADs for Ludhiana-Bathinda Package-2, VRK 11 & 12.

    Why it matters

    ADs are crucial for starting execution and converting order book into revenue, impacting future growth.

    And going forward⏳, I think in this year only, we'll have at least three more HAM projects starting. We should be getting the ADs.

    How to verify

    detailed_narrative

    Risks & concerns

    4
    RiskSeverity

    Land Acquisition Delays for Projects

    NHAI's inability to provide land for projects (e.g., Delhi-Amritsar-Katra Expressway) led to project cancellation and required arbitration for cost recovery. — Management acknowledged

    medium

    Changes in Government Payment Policies

    New NHAI conditions regarding retention money and milestone-based payments cause funds to be stuck until project completion, impacting working capital and cash flow. — Management acknowledged

    medium

    Increased Contracting Costs

    Higher contracting and other related costs impacted Q4 margins, though management expects streamlining going forward. — Management acknowledged

    low

    Regional Instability/Incidents in Project Areas

    Political situation and incidents in project areas (e.g., Ramban-Banihal) can cause delays and impact labor availability, affecting project timelines. — Management acknowledged

    medium

    Q&A highlights

    8

    “So our order book value is INR10,806 crores. And this is 3.2 times of the bill-to-book ratio. And we have almost 6 HAM projects in which 1 HAM project, we've already got the appointed date which is Southern Ayodhya Bypass in March. That is on 28th of March '25. We're expecting Northern Ayodhya Bypass also very soon. Besides this, we are going ahead with the financial closure of the Ludhiana-Bathinda Package-2, where we are expecting the appointed date again in maybe maximum in next quarter. And for VRK 11 and 12, there are 2 packages together there also. VRK 12, the forest approval has gone to the CM office, and we are expecting it soon. Once it is then, we are going to go, going ahead with the AD there also. The financial portion is already done. And going forward, I think in this year only, we'll have at least three more HAM projects starting. We should be getting the ADs.”

    Clarifies the status and timeline for HAM projects to move from order book to execution, impacting future revenue.

    asked by Mohit Kumar

    3 min read6 chapters

    Detailed Narrative

    01

    Q4 & FY25 Financial Performance Overview

    Ceigall India reported a consolidated revenue from operations of INR34,179 million for FY25, marking a 13.8% year-on-year growth. The consolidated EBITDA for the full year stood at INR4,995 million, with a margin of 14.6%, and PAT was INR2,866 million, with an 8.4% margin. For Q4 FY25, consolidated revenue grew 8.5% YoY to INR10,116 million, with an EBITDA of INR1,279 million (12.6% margin) and PAT of INR724 million (7.2% margin). Standalone revenue for Q4 FY25 was INR9,918 million, up 17.2% YoY, with an 11% EBITDA margin.

    02

    Robust Order Book and Diversification Strategy

    As of March 31, 2025, the company's order book stood at INR10,862 crores, reflecting a strong 3.2x bill-to-book ratio. The order book composition is diversified, with 85.3% from elevated roads, highways, and tunnels, and 13.3% from railway and metro projects. NHAI projects constitute 79.9% of the total order book. The company is actively pursuing diversification into new verticals like water and irrigation, with a tender pipeline of INR70,000 crores across various segments, including metros and heavy products.

    03

    HAM Project Progress and Annuity Inflows

    Ceigall India is making significant progress on its HAM projects. The first HAM project is operational and has received 3 annuities, with the fourth due in June. Bathinda Dabwali and Jalbehra-Shahbad projects are expected to achieve pre-COD soon, which will trigger annuity inflows within six months. Southern Ayodhya Bypass has received its appointed date, and financial closure for Ludhiana-Bathinda Package-2 is anticipated in the next quarter. The company expects at least three more HAM projects to start in the current fiscal year.

    04

    Working Capital and Debt Management

    The consolidated net debt-equity ratio remained comfortable at 1.5x for FY25, with standalone net debt-equity at 0.4. The net working capital cycle was 62 days as of March 31, 2025. Consolidated receivables stood at INR850 crores, including INR268 crores from HAM debtors. Contract assets increased to INR847 crores (from INR370 crores last year) due to INR96 crores in retention money and INR186 crores in stuck payments from the Bihar project, reflecting changes in NHAI payment policies.

    05

    Industry Outlook and Execution Challenges

    Management noted that NHAI is cleaning up its system by ensuring land availability and approvals, which is a positive sign for the industry. However, the Delhi-Amritsar-Katra Expressway project (INR1,071 crores) was removed from the order book due to land unavailability, with the company pursuing arbitration for a higher claim than the INR11 crores offered by NHAI. Q4 margins were impacted by increased contracting and other related costs, but the company expects streamlining and margin stability going forward⏳.

    06

    Future Growth and Equity Commitment

    Ceigall India has set a revenue growth guidance of 10-15% and a pure EPC EBITDA margin target of 11-12% for FY26. The company aims for INR5,500 crores in order inflow for the current fiscal year. An equity commitment of INR800 crores is in place for HAM projects, with an anticipated investment of around INR250 crores in FY26, contingent on the availability of Appointed Dates. The company continues to expand its geographical presence and diversify into new segments like metros and underground projects to sustain growth.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.