Shares of one of India’s fastest-growing infrastructure development companies surged nearly 3.1 percent on BSE to Rs. 296.55 in the trading session of Tuesday.
With a market cap of Rs. 3,627.2 crores, at 10:17 a.m., the shares of Vishnu Prakash R Punglia Limited were trading in the green at Rs. 291, up by nearly 1.2 percent, as compared to its previous closing price of Rs. 287.7.
During the recent company conference call, analysts from Trade Brains asked a few insightful questions to the management. Here are the details:
(i) Could you share if we are presently executing any joint venture projects with VA Tech Wabag, Additionally, are there plans to collaborate with them on securing global water management projects?
The company’s management stated that it is exploring opportunities to secure projects in the water and waste management sector from global clients, particularly through VA Tech Wabag, in the coming years.
(ii) To stabilise your backward integration in business currently, do you have any plans to acquire cement companies?
The company has no plans to acquire any cement businesses in the upcoming quarters.
(iii) Due to geopolitical tensions and economic uncertainties, costs of raw materials are rising substantially like steel and cement and some extent labour costs what actions are you taking to maintain profit margins?
The company maintains a price variation clause in its tender document to avoid raw material price hikes.
Management Outlook based on other Analysts Q&A
As per management’s conference call on 11th November, the company has set a target for a 10-15 percent topline growth in revenue for FY25.
For FY26-27, the company anticipates a 3x increase from the current order book. It has a robust pipeline of prospective new bids, valued at around Rs. 5,000 crores, which are expected to be finalised in the coming months.
With an order book currently valued at around Rs. 5,086 crore, and operations expected to ramp up in the upcoming quarters, the management remains confident in delivering robust growth.
As of Q2 FY25, the company’s working capital stood at Rs. 750 crores, and in the same quarter, VPRPL expanded its operations into the state of Goa.
In Q2 FY25, the company utilised Rs. 16 crores of its planned Rs. 30 crores capital expenditure (capex). Additionally, the company has plans to expand globally through its joint venture with VA Tech Wabag Limited.
The management is also optimistic about achieving strong profit after tax (PAT) in Q3 and Q4 FY25 and expects to surpass the PAT recorded in FY24, driven by planned receivables and a reduction in debt throughout FY25.
Financials:
For Q2 FY25, Vishnu Prakash R Punglia Limited reported revenue from operations of Rs. 335 crores, reflecting a significant growth of around 30.6 percent QoQ from Rs. 256.5 crores in Q1 FY25, and about 13 percent YoY increase from Rs. 296.4 crores in Q2 FY24.
The company’s net profit for Q2 FY25 grew to Rs. 24 crores, representing a rise of around 60 percent QoQ from Rs. 15 crores in Q1 FY25, and a year-on-year growth of nearly 13.2 percent from Rs. 21.2 crores in Q2 FY24.
EBITDA for Q2 FY25 stood at Rs. 486 crores, reflecting a 44.6 percent QoQ growth from Rs. 336 crores in Q1 FY25, and a 26.6 percent YoY increase from Rs. 384 crores in Q2 FY24.
Further, EBITDA margins improved significantly, rising from 12.96 percent in Q2 FY24 to 14.51 percent in Q2 FY25, reflecting an expansion of 155 basis points on a YoY basis.
The quarter was marginally impacted by factors such as the monsoon season and union elections.
Order Book:
As of Q2 FY25, the company’s order book stood at nearly Rs. 5,086 crores, with projects spread across all the business segments to be executed over the next 24-36 months.
The Water Supply Projects (WSP) segment holds the largest share, accounting for 70 percent of the order book, with an outstanding value of Rs. 3,558.7 crores. Railway Projects contribute 25 percent, with an order book of Rs. 1,268.5 crores, while Road & Civil Projects represent the remaining 5 percent, with an order book of Rs. 120.3 crores.
During the current financial year, the company has secured new orders valued at approximately Rs. 1,104 crores.
Shareholding Pattern:
As per the September 2024 shareholding pattern, the Promoters hold a 67.81 percent stake in the company, Foreign Institutional Investors (FII) hold a 0.1 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 27.99 percent and 4.1 percent stake in Vishnu Prakash R Punglia Limited, respectively.
Stock Performance:
The stock has delivered positive returns of nearly 50.4 percent in one year, as well as around 96.3 percent returns in the last six months. So far in 2024, the shares of Vishnu Prakash R Punglia have given positive returns of about 33.8 percent.
About the Company:
Established in the year 1986, Vishnu Prakash R Pungalia Limited (VPRPL) is an integrated engineering, procurement and construction (EPC) company with experience in the design and construction of infrastructure projects.
The company’s principal business operations are broadly divided into four categories: Water Supply Projects (WSP), Railway Projects, Road Projects, and Irrigation Network Projects. Its key customers are Central & State Government, Autonomous Bodies and Private Bodies
Written by Shivani Singh
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