OM INFRA LIMITED — Investor Meet, 13-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Om Infra Limited reported a consolidated revenue of ₹541 crores for the nine months of FY '25, with an EBITDA of ₹36 crores, yielding a margin of 6.7%. The profit after tax (PAT) stood at ₹21 crores, representing a PAT margin of 3.9%. Stand-alone revenue reached ₹483 crores, with an EBITDA of ₹33 crores and a PAT of ₹13 crores, reflecting a margin of 2.7%. Delays in funding and project approvals, notably in the Jal Jeevan Mission (JJM) projects, adversely impacted quarterly performance, which fell short of expectations.

**Future Outlook and Growth Drivers:** Management remains optimistic, expecting an acceleration in funding following recent budgetary provisions of ₹67,000 crores for JJM extended until 2028. Om Infra plans to bid for ₹1,000 crores worth of JJM projects and aims to leverage additional opportunities in river interlinking and irrigation, as well as hydropower projects, particularly the Eastern Rajasthan Canal Project (ERCP).

**Order Book and Operational Updates:** The company holds an order book of ₹2,100 crores with diversification in hydro and water projects. Notable ongoing projects include Shapurkandi (₹240 crores revenue achieved) and newly bagged projects such as the KWAR Project valued at ₹410 crores. Management projects smoother execution with government funding beginning to flow post-budget.

**Analyst Q&A Insights:** Analysts questioned guidance and execution challenges linked to funding delays. Management confirmed a revised revenue target of ₹750-850 crores for FY '25, relying heavily on expected inflows from JJM projects. They highlighted operational hurdles common to the industry, attributing recent performance challenges to external delays rather than internal mismanagement, reassured that project timelines would stabilize.

**Market or Regulatory Updates:** The government’s renewed push for infrastructure spending, totaling ₹11.2 lakh crores, alongside regulatory extensions for ongoing projects, bodes well for Om Infra's growth, particularly through JJM-related contracts.

**Strategic Focus Areas:** Management emphasized a commitment to operational excellence and improved profitability, targeting margin improvements of 10-12% as new projects contribute to revenue while exiting non-core assets may bolster cash flows.

**Investor Insight:** Given the current project pipeline and government support for infrastructure development, the company's financial health and growth trajectory suggest a strong potential for upward movement. This aligns with a ‘buy’ position, especially as funding challenges diminish. Prospective investors should monitor both execution performance and government funding trends in the infrastructure space.