Established in 1993, this engineering and infrastructure company specializes in the engineering, maintenance, and operations of mechanical equipment across various sectors, including Oil & Gas, Power Plants, Petrochemicals, and Fertilizers.
Price Movement:
With a market capitalization of Rs. 959 crores, the shares of RBM Infracon Ltd started Thursday’s trading session on a higher note at Rs. 949 compared to its previous close of Rs. 934. During the trading session, the shares hit a high of Rs. 975, gaining around 4 percent and are currently trading at Rs. 973 apiece.
Financials:
Looking at the company’s financial performance, the revenue decreased by 32 percent from Rs. 57.29 crores during the March quarter to Rs. 38.85 crores in the June quarter. On the other hand, the net profits declined by around 19 percent from Rs. 4.08 crores to Rs. 3.29 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue zoomed by 99 percent from Rs. 19.52 crores during Q1FY24 to Rs. 38.85 crores in Q1FY25. In addition, the net profits magnified by 250 percent from Rs. 94 lakhs to Rs. 3.29 crores during the same timeframe.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 11.41 percent and a return on capital employed (RoCE) of 18.20 percent for the period spanning FY23-24. Moreover, during the same timeframe, the net profit margin stood at 8.55 percent.
Order Book:
As per the latest data, RBM Infracon’s total order book has reached over Rs. 4,898 crores, representing 5.03 times its market capitalization. This impressive growth is driven by a massive new order worth Rs. 3,498 crores received from Oil and Natural Gas Corporation Limited (ONGC).
Recent Development:
Earlier, the company secured a contract from Reliance Industries for underground piping fabrication and installation, along with associated civil work for Train-1 (5 GW) at the PV Manufacturing Complex in Reliance Jamnagar, valued at over Rs. 1.31 crores.
Additionally, the company also received one more order from Kalpataru Projects International Ltd for case crossing work worth Rs. 95.58 crores.
Customer Base:
RBM Infracon Ltd has a diverse customer base primarily in the mechanical and civil engineering sectors, serving industries such as oil and gas, petrochemicals, power generation, fertilizers, and cement.
Notable clients include major players like Reliance Industries, Nayara Energy, and Adani Group, reflecting the company’s strong presence in critical infrastructure projects.
Future Outlook:
RBM Infracon aims to achieve Rs. 1,000 crore in revenue by the next financial year, with aspirations to reach Rs. 5,000 crore in the next five years.
Moreover, RBM Infracon is positioned to benefit from India’s growing infrastructure sector, backed by favourable government policies and increased investment in infrastructure development.
Additionally, RBM is expanding into emerging sectors like solar energy and green hydrogen, enhancing its service offerings.
Conclusion:
With robust government investment in infrastructure and a significant new contract from ONGC, RBM Infracon is well-positioned to capitalize on emerging opportunities in the energy market.
This combination of strategic partnerships and favourable government policies is likely to enhance RBM Infracon’s financial performance and market presence in the coming years.
Written By Vaibhav Patil
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