Rbm Infracon Limited — Investor Meet, 24-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** RBM Infracon Limited delivered strong financial results for Q3 FY25, reporting a total income of ₹6,519 Cr, which marks a remarkable 95% increase year-over-year. The EBITDA rose to ₹986 Cr, reflecting a 40% YoY growth, and the EBITDA margin for the quarter was 15.20%, down 601 basis points. The profit after tax (PAT) was ₹670 Cr, up 38% YoY, but with a PAT margin of 10.27%, a decline of 430 basis points. For the 9M FY25 period, total income rose to ₹16,898 Cr, a 133% growth, with EBITDA climbing to ₹2,463 Cr, a 120% increase.

**Future Outlook and Growth Drivers:** Management highlighted plans to significantly venture into the green energy sector, particularly in green hydrogen and solar energy, alongside the establishment of a new subsidiary, RBM Green Energy Private Limited. They anticipate continued growth driven by project completions and enhancements with clients such as ONGC.

**Order Book and Operational Updates:** The company's order book stood at ₹4,72,778 Cr, an impressive 242% increase for the first nine months of FY25. This growth is attributed mainly to new orders offsetting completed projects. Specific projects include the successful takeover of an ONGC project significantly ahead of schedule.

**Analyst Q&A Insights:** Analysts inquired about revenue projections, with management forecasting a revenue target of ₹300-325 Cr for FY25, with margins expected to remain around 9-10%. Management expressed confidence in rebuilding revenue streams disrupted by client redesigns. Concerns regarding operational margins were addressed, indicating a projection of around 15% in upcoming quarters as efficiency improves. Questions about capital expenditures and the impact of project delays were met with optimistic responses about future growth.

**Market or Regulatory Updates:** No new market or regulatory developments were reported that would severely impact the company’s operational strategy.

**Strategic Focus Areas:** The management emphasized a strategic pivot towards innovation and sustainability in operations. They are actively expanding into the clean energy market, which aligns with broader market trends while maintaining a significant focus on existing infrastructure projects.

**Investor Insight:** Given the robust financial performance, strong order book, and strategic pivot to sustainability and new markets, RBM Infracon appears well-positioned for future growth. The combination of increased revenue targets for FY26 and ongoing enhancements in project execution suggests a favorable outlook. Furthermore, the company’s active measures to manage working capital effectively support a 'buy' position for investors looking at long-term growth potential.