A micro-cap company surged to its 5 percent upper circuit after bagging multiple orders worth Rs.44.77 crores from Indian Oil Corporation, Bharat Petroleum, and Torrent Gas. The contracts involve last-mile connectivity and direct marketing services for city gas distribution projects across Andhra Pradesh, Telangana, and Tamil Nadu.
During Monday’s trading session, shares of Desco Infratech Ltd reached an intra-day high of Rs.257.55 per share, hitting a 5 percent upper circuit from its previous close of Rs.245.30 per share. The shares slightly retreated since then and closed at Rs.256.00 per share.
Order Details
Desco Infratech Ltd. has secured multiple domestic orders from major public and private sector companies, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Torrent Gas Limited. The contracts pertain to last-mile connectivity (LMC), direct marketing services (DMA), and associated works under the City Gas Distribution (CGD) network across Andhra Pradesh, Telangana, and Tamil Nadu.
The total consideration for the awarded contracts stands at Rs.44.77 crores (inclusive of GST). Notably, the order value represents approximately 64 percent of the company’s total revenue for FY25, highlighting a significant boost to its project pipeline and revenue visibility for the upcoming quarters.
Financial Performance
Based on its latest financial disclosures, Desco Infratech Ltd posted a consolidated revenue of Rs.36.81 crores in the second half of FY25, marking a rise of approximately 70.6 percent from Rs.21.58 crores recorded in H2 FY24. Net profit also saw a notable jump, reaching Rs.5.81 crores, an increase of nearly 81 percent compared to Rs.3.21 crores during the same period last year.
For FY25, the company reported a revenue of Rs.59.45 crores, marking a 102 percent increase compared to the previous year. The net profit stood at Rs.9.06 crores, reflecting a 162 percent year-on-year growth.
The company has a Return on Capital Employed (ROCE) of 18.89 percent and a Return on Equity (ROE) of 15.38 percent. Its Price-to-Earnings (P/E) ratio stands at 53.79, higher than the industry average of 23.8. Furthermore, the company maintains a current ratio of 6.56, a debt-to-equity ratio of 0.19, and an Earnings Per Share (EPS) of Rs.4.56.
Desco Infratech Ltd operates across key infrastructure segments, including City Gas Distribution (CGD), where it specializes in laying and maintaining pipelines for piped natural gas (PNG) using carbon steel and MDPE materials. In the renewable energy space, the company is actively involved in solar power projects aimed at promoting sustainability.
Additionally, the company plays a vital role in water infrastructure by executing pipeline construction, overhead tanks, and well systems to ensure clean water access. In power infrastructure, it undertakes the installation and maintenance of LT and HT power cables, contributing to efficient energy distribution networks.
Written by – Siddesh S Raskar
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