Capacit'e Infraprojects Q1 FY23 Operations Revenue Grows 70% YoY To Rs 477.1 Cr

Capacit’e Infraprojects Limited reported on Thursday that its revenue from operations grew by 70 per cent year-on-year to Rs 477.1 crores, EBIDTA saw an upswing by 140 per cent Y-o-Y to  Rs.100.8 crore with the EBITDA margin standing at 21 per cent and Profit After Tax saw an uptick by a whopping 538 per cent Y-o-Y to Rs.29 crore.

 Capacit’e Infraprojects Limited has laid the groundwork for long-term growth with a strong set of numbers for Q1 FY23 and Rs. 8229 crores total order book as on June 30, 2022.
 
Despite the adverse geopolitical environment and incremental turnover, it maintained its debt level. Capacit'e Infraprojects Limited's ED and CFO, Rohit Katyal, indicated to the investors that the company's debt level will be reduced by Rs.60-70 crores by the end of FY23 owing to the release of retention money. The working capital cycle (excluding retention) also showed a favourable trend, decreasing from 117 to 89 days over the past 5 quarters on account of stringent cost control and collection efficiencies contributing to the profitability and cash flows. The current management target for the working capital cycle is 60 days by the next financial year.

The company got the ball rolling in the first quarter by bagging the project from the Municipal Corporation of Greater Mumbai for a multi-speciality hospital in Bhandup valued at 670 crores. Covering an area of 51,117.3 sqm this nine-floor hospital will house 360 beds for patients, living accommodations for medical staff, modern infrastructure and a cost-effective quality design. Further, it has also bagged a prestigious private sector residential project in Navi Mumbai for Rs. 227.45 crores. Capacit’e even while being a relatively young company has boasted a diversified order book across clientele with an execution focus on marquee clients in the private and public sectors. Its 21 operational projects, led by companies like Raymond's, Oberoi, CIDCO, MCGM, Piramal, BSNL, etc., provided almost 95 per cent of its revenue.

The management expressed that the ordering pipeline remains robust across all sectors such as residential, commercial, institutional, healthcare, etc. and expects order inflows to the tune of Rs.2,500 crores in FY23 with Rs.800 crores having been achieved in the first quarter itself. With the start of work on MAHADA (under an integrated Special Purpose Vehicle), the largest redevelopment project in Asia on a cash contract basis and the allocation of 7th land parcel for the CIDCO project, the management’s revenue guidance for FY23 is Rs. 1800 crores with an EBITDA margin of 18-18.5%. The company anticipates spending 42–45 crores on capital expenditures during the current fiscal year.

Yes Securities, one of the leading Institutional brokerage house in India has predicted a CAGR of 29 per cent in revenue and 66 per cent in PAT over FY22-24E and given a buy recommendation rating for the share in a research report dated August 10, 2022. With favourable policies, private sector consolidation, FDI inflows, lower home loan rates, decreased regulatory fees, and opportunities for redevelopment, modernization, and modular expansion in the years to come, there is considerable optimism in the real estate industry. Although monsoons may temporarily halt excavation work, the company is still well-positioned to seize these opportunities owing to its specialization and equipment base. The company's current approach to bidding is to choose higher-value, well-funded public sector projects so that it may compete with established players fairly on price and leverage its technical competency and capabilities when it comes to private sector bids. Currently, the public sector accounts for 68% of Capacite’s order book while the balance comes from the private sector. In a category-wise breakup residential accounts for 28% of the order book followed by commercial and institutional at 21% and mix use construction at 52%. On a sustainable basis, the company expects the public and private sector mix to remain in a  ~70:30 proportion. The strategy ahead will be to select projects that will enhance EBITDA and PAT and also generate free cash flows while placing emphasis on its existing geographies like Mumbai MMR, Pune, Chennai, Delhi NCR, etc. Capacit'e Infraprojects has turned a new page in its growth path by regaining its execution pace, and by maintaining this momentum it will establish itself as the landmark where visions become reality. 

This quarterly performance has undoubtedly demonstrated that the corporation is adept at building a financially flourishing business with progressive technology that is not only ahead of its industry peers but also provides operational excellence.  With a good management track record, consistent margins, strong order book and return ratios and an exceptional execution track record, Capacite certainly knows the drill for gaining traction in the EPC industry.