A prominent infrastructure developer known for major construction projects has announced significant contract news. This article reveals the company’s latest Rs. 450 crore housing project win in Powai, a key development that substantially increases its total order book value, highlighting continued growth momentum.
Supreme Infrastructure India Limited’s stock, with a market capitalisation of Rs. 288.88 crores, rose to Rs. 112.41, hitting a 5 percent upper circuit from its previous closing price of Rs. 107.06. Furthermore, the stock over the past year has given a return of 25.5 percent.
Order Updates
Supreme Infrastructure India Limited has secured a Rs. 450 crore turnkey construction contract for building a Project Affected Persons (PAP) housing complex in Powai, Mumbai.
This project is being carried out under SEBI’s Listing Regulations and forms part of a large redevelopment initiative. The scope of work includes civil, MEP, and infrastructure work for about 16 lakh sq. ft. of built-up area, to be completed over a 36-month period.
This redevelopment is led by BSS Property Ventures and Rajeshwar Property Ventures, which are backed by Brookfield. Supreme Infrastructure has been appointed as the EPC contractor for Phase 1. With this new contract, the company’s overall order book now stands at Rs. 1,725 crore, including other high-value contracts with firms like Larsen & Toubro (L&T).
Company’s Journey So Far
As of September 2024, the State Bank of India (SBI) has taken a bold step by converting a large portion of Supreme Infrastructure India Ltd’s (SIIL) outstanding debt into equity, following a 93.45 percent write-off.
This approach, similar to past cases like Jet Airways and Kingfisher Airlines, reflects a growing trend under India’s insolvency framework prioritising revival over liquidation. The move positions SBI not just as a lender but also as a stakeholder with a vested interest in SIIL’s recovery.
The financial restructuring aims to give SIIL a second chance at stability, even as it comes on the back of SBI’s larger history of NPA write-offs. However, this restructuring raises regulatory and governance questions.
While SBI’s decision aligns with RBI’s guidelines, it calls for close monitoring to avoid moral hazard and ensure accountability. Regulators must ensure that the process supports financial stability. While governance reforms within SIIL will be crucial to realising long-term benefits from this strategic shift.
Financial Highlight
The company reported a revenue of Rs. 7 crore in Q3FY25, declining 22 percent YoY from Rs. 9 crore in Q3FY24 and 30 percent QoQ from Rs. 10 crore in Q2FY25. Over the last three years, sales have contracted at a CAGR of -39 percent, highlighting continued top-line pressure.
Net loss widened to Rs. 362 crore in Q3FY25, compared to a loss of Rs. 307 crore in Q3FY24 (18 percent YoY rise) and Rs. 341 crore in Q2FY25 (6 percent QoQ rise). The 3-year profit CAGR stands at -23 percent, reflecting sustained bottom-line challenges.
Written By Fazal Ul Vahab C H
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