ITD Cementation India Limited — Investor Meet, 18-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Financial Performance: ITD Cementation reported a revenue of ₹2,250 cr for Q3 FY '25, marking an 11% year-on-year increase from ₹2,017 cr. The EBITDA margin stood at 9.5%, with a profit after tax of ₹87 cr, reflecting a similar growth rate. For the nine months, revenue totaled approximately ₹6,600 cr, up 21% year-on-year, while profit after tax surged 41% to ₹259 cr, boosted by an under-leveraged balance sheet with a net debt-to-equity ratio of 0.4x.

Future Outlook and Growth Drivers: Management remains optimistic, expecting a substantial order intake of around ₹9,000 cr for FY '25 and projecting approximately ₹12,000-₹13,000 cr for FY '26, leveraging ongoing and future projects, including significant contracts for Vadhvan Port and IKEA totaling about ₹3,300 cr.

Order Book and Operational Updates: The company has a current order book of ₹20,000 cr with key contributions from government (50%), private sector (42%), and PSU contracts (8%). Challenges from projects in Bangladesh due to local conditions have temporarily impacted revenue, but the backlog remains strong.

Analyst Q&A Insights: Concerns over profitability were addressed, with management confident about maintaining margins around 10%. Analyst inquiries on execution capabilities show readiness for projects exceeding ₹10,000 cr, highlighting a need for potential capex investments. The response to supply chain and political risks was positive, indicating a cautious but a proactive approach.

Strategic Focus Areas: Management emphasized innovation and technological advancement in operations, aiming to bolster project execution capabilities to seize emerging opportunities across diverse infrastructure segments.

Investor Insight: Current financial performance and strategic plans suggest a favorable growth trajectory, aligning with a ‘buy’ position for investors considering ITD Cementation’s robust order book and improving operational execution.