DHRUV

Dhruv Consultancy Services Limited reported a Q3 FY25 revenue of INR22.56 crores, with an EBITDA of INR4.47 crores, resulting in a 20% EBITDA margin. Profit after tax stood at INR2.15 crores, translating to a PAT margin of 9.52% and diluted EPS of INR1.20. This quarter saw a sequential revenue decline of 30% from INR32.23 crores in Q2 FY25, primarily due to delays in order finalization and higher initial mobilization expenses.

For the first nine months of FY25, the company delivered a strong performance with total revenue reaching INR75.49 crores, marking a 31.5% year-over-year increase. EBITDA for this period was INR11.24 crores, with an improved EBITDA margin of 14.89%. Profit after tax for 9M FY25 was INR4.91 crores, maintaining a PAT margin of 6.5% and diluted EPS at INR2.92.

Dhruv secured a significant Letter of Award (LOA) for an authority engineer project from Maharashtra State Industrial Development Corporation, valued at INR23.46 crores. The company was also shortlisted for a second major project by the government of Bangladesh. Furthermore, it received a notice to proceed for a INR11.05 crores general consultancy contract for the Garkhal Bridge project in Himachal Pradesh, marking its largest railway sector project to date and its first general consultancy contract.

The company is actively diversifying its service portfolio beyond highways into other infrastructure sectors such as railways, metros, airports, public health engineering, energy, and power. Dhruv is also expanding its international presence, with its first achievement in Mozambique and a pipeline of projects in Tanzania, Ghana, Zambia, and a INR200 crores project in the Philippines, anticipating international markets to be a dominant growth driver for FY25-26. The business development focus is shifting towards larger projects, specifically those above INR20 crores.

Q3 FY25 performance was impacted by delays in order finalization due to state government elections and the associated code of conduct, alongside higher initial mobilization expenses for new projects. However, management expects a significant increase in performance from FY24, with March '25 looking promising due to the formation of stable governments. The company plans to double its current total order book of INR557 crores in the coming months, with the existing order book expected to be executed over three years.

Preferential money proceeds were strategically utilized to acquire two key equipment: a falling weight deflectometer and a mobile bridge inspection unit, enhancing operational capabilities. The company demonstrated its commitment to shareholder value by announcing an interim dividend of INR0.1 per share. For future projects, bank guarantees will be a requirement, and discussions are ongoing with existing bankers to facilitate these needs.