Financially strong Infra stock engaged in providing design, engineering, procurement, and construction (EPC) services hit a 20 percent upon receiving new work orders worth Rs. 1,937 Crores
Price Action
With a market capitalization of Rs. 11,070 Crores, the shares of ITD Cementation India Limited hit a 20 percent upper circuit at Rs. 644.40 per equity share, from its previous day’s close price of Rs. 537.
What Happened
ITD Cementation India Limited engaged in the business of providing design, engineering, procurement, and construction (EPC) services has received a new work order for the construction of a multistoried commercial building in Uttar Pradesh for a consideration of Rs 1,937 Crores.
Possible Acquisition by Adani Group
As per sources, the Adani Group is leading in acquiring the ITD Cementation India Limited promoter’s 46.64 percent stake in the company based on its market valuations. This acquisition is expected to strengthen Adani Group’s infrastructure portfolio, which already covers many sectors, including airports, highways, ports, power plants, and real estate.
This was followed after the Promoter of ITD Cementation India Limited, the Italian Thai Development Public Company Limited who holds a 46.64 percent stake in the company, was exploring a potential divestment of their investments in the company.However, the process remains in its preliminary stages, with no final decision taken yet.
About the Company
ITD Cementation Limited is engaged in the business of providing design, engineering, procurement, and construction (EPC) services for infrastructure projects in India. Presence and Operations
ITD Cementation Limited’s area of operations includes urban infrastructure, mass rapid transit systems and airports, highways, bridges and flyovers, maritime structures, industrial
structures and buildings, hydro, dams, tunnels and irrigation, foundation and specialist engineering, water and wastewater, and many others.
ITD Cementation Limited has a global presence with operations in India, Bangladesh, Lao PDR, the Philippines, Vietnam, and Africa, etc., Its Clientele comprises of Government 48 percent, PSU 17 percent, and Private Sector 35 percent. Massachusetts Institute of Technology holds a 5.32 percent stake in the company.
Order Book
As of Q1FY25, it has a consolidated work order book of Rs. 18,536 Crores and in Q1FY25 it secured work orders worth Rs. 1,053 Crores. The order book breakdown consists of Maritime Structures 34.5 percent, Urban Infrastructure, MRTS, and Airports 21.2 percent, Highway Bridges and Flyovers 14.7 percent, Industrial Structures and Buildings 12.6 percent, Hydro, Dams, Tunnels, and Irrigation 11.4 percent, Foundation, and Specialist Engineering 2.8 percent and Water and Waste Waterworks 2.7 percent
Financials and Ratios
Its revenue from operations grew by 30 percent from Rs. 1,833 Crores in Q1FY24 to Rs. 2,381 Crores in Q1FY25, accompanied by profits of Rs. 52 Crores to Rs. 100 Crores.
In terms of Return ratios, it has delivered a return on equity (ROE) of 19.8 percent and a return on capital employed (ROCE) of 27.1 percent. It has maintained a debt-to-equity ratio of 0.60.
Written by: Bharath K.S
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