SRM Contractors Limited — PPTs, 20-05-2025: Investor Presentation

1. Financial Highlights:

SRM Contractors Ltd posted revenue of INR 528.13 Cr in FY25, up 54% YoY from INR 342.42 Cr. EBITDA surged to INR 95.36 Cr (17.6% margin) versus INR 49.22 Cr (14.1%), and PAT more than doubled to INR 55 Cr (10.15% margin). Q4 showed strong momentum with revenue of INR 234.27 Cr and PAT at INR 24.08 Cr. Total assets increased to INR 407.63 Cr, equity stood at INR 275.54 Cr, and gross debt-equity ratio improved to 0.15. Operating cash flow was modest at INR 1.07 Cr due to working capital changes.

2. Strategic Initiatives & Growth Drivers:

Focus remains on infrastructure projects in difficult terrains (J&K, Ladakh, Uttarakhand, Himachal). Expanding into aerial ropeways, hydroelectric, and mining civil infrastructure. Large owned fleet (~300 equipment units) supports timely execution. Projects are clustered geographically to reduce costs and improve margins. Order pipeline includes INR 361.6 Cr (general tenders) and INR 163.6 Cr (HAM contracts).

3. Business Developments:

Order book stands at INR 1460.57 Cr, led by roads & bridges (58%) and slope stabilization (29%). Key projects include NHIDCL roadworks and BRO tunnels in Ladakh and Arunachal Pradesh. No new acquisitions or partnerships reported.

4. Market Position & Competitive Advantage:

Niche player with strong expertise in mountainous infrastructure projects, handling 32+ road/bridge and multiple tunnel projects. Centralized procurement and owned equipment lower execution risks. Promoter-led with 16+ years’ experience and a qualified management team providing operational stability.

5. Investor Implications:

Robust growth with margin expansion and disciplined debt reduction highlight positive growth potential. Diversification into new infrastructure verticals and a solid order book support this outlook. Execution risk in challenging terrains and working capital warrants monitoring, but asset control and project clustering underpin operational strength.