Detailed Narrative
Strong Financial Performance in Q4 and FY25
GPT Infraprojects reported its highest-ever revenue and profits in FY25. Consolidated revenue for Q4 FY25 grew 29.15% YoY to INR381 crores, and for the full year, it increased by 16.7% YoY to INR1,188 crores. Consolidated PAT (after minorities) for FY25 rose significantly by 37.9% to INR80 crores, while standalone PAT saw a 45.9% increase to INR89 crores. The company also maintained a long-term EBITDA margin of 13%.
Robust Order Book and Inflow
The company's net unexecuted order book stands at a healthy INR3,486 crores as of March 31, 2025, providing strong revenue visibility at 2.92 times its FY25 numbers. Order inflow for FY25 was INR1,575 crores, including significant contracts like the INR547 crores Kona Expressway project and the INR481 crores Kolaghat bridge project. Management expects approximately INR2,000 crores in order inflow for FY26.
Ghana Operations and Sleeper Segment Turnaround
The consolidated financial performance was impacted by losses from the Ghana subsidiary in FY25, primarily due to operational delays stemming from elections and currency volatility🌐. However, the Ghana facility's product has been approved, and commercial production is expected to commence within the next 1-2 months. Management anticipates the Sleeper segment, including Ghana, to achieve INR150 crores in revenue and an EBIT margin of 15-16% in FY26, contributing to improved consolidated margins.
Strategic Capital Allocation and Debt Reduction
A QIP of INR175 crores in August 2024 was strategically utilized for debt reduction and long-term working capital, leading to a CRISIL rating upgrade from A- to A. The current debt stands at approximately INR122 crores, with an expectation to reduce it by INR20-21 crores in FY26, bringing it below INR100 crores. Finance costs for FY25 were INR24.5 crores, down from INR32 crores, and are projected to fall below INR20 crores in FY26.
Backward Integration and Operational Efficiency
GPT Infraprojects commissioned a steel girder and component manufacturing facility in West Bengal with an initial capacity of 10,000 metric tons per annum. This facility is primarily for backward integration, aiming to save costs on overheads and other expenses through in-house production rather than generating significant direct revenue. The estimated impact on EBITDA margin from this integration is a modest INR3-4 crores.
Working Capital Management and CFO
The company experienced a decline in CFO, attributed to a disproportionate reduction in debtors and an increase in contract assets. This was mainly due to milestone-based payments for certain EPC contracts, particularly the NHAI Ganga Bridge, getting temporarily stuck. Management expects these payments to be released within the next 1-2 months, which should improve the CFO position.