Konstelec Engineers Limited — PPTs, 30-05-2025: Investor Presentation

1. Financial Highlights:

Konstelec posted ₹109.26 Cr revenue in H2 FY25, up 29% from H1, yet full-year revenue fell 10% YoY to ₹193.71 Cr. EBITDA margin dropped sharply to 5.64% in H2 from 11% in H1, ending the year at 7.79% versus 9.41% last year due to execution issues. PAT declined 47% YoY to ₹4.75 Cr with margin down to 2.45%. Borrowings rose to ₹68.99 Cr from ₹45.10 Cr, reflecting higher working capital. Fixed assets increased to ₹10.33 Cr, indicating ongoing capex.

2. Strategic Initiatives & Growth Drivers:

Entering the Transmission & Distribution segment with a ₹25 Cr government contract, Konstelec is targeting a high-growth area. Renewable energy ventures, including solar projects in Rajasthan, aim to diversify revenue. The newly formed JV in Saudi Arabia taps into infrastructure growth linked to Vision 2030, complemented by an office setup in Mumbai to support operations.

3. Business Developments:

The company won an international order in Cameroon, marking entry into Central Africa, and secured a ₹5 Cr project with Reliance. The Saudi JV is progressing with multiple pipeline opportunities. Focus remains on refinery and steel sectors, which contribute around 75% of revenue.

4. Market Position & Competitive Advantage:

Konstelec’s legacy in EPC for electrical and automation services, backed by technology and skilled manpower, supports its competitive edge. Strong presence in refineries, steel, and new T&D projects underpins sectoral leadership. Expansion into new geographies and segments targets scale and risk mitigation.

5. Investor Implications:

FY25 execution challenges pressured margins and profits, but recent contract wins and diversification provide positive growth potential. The turnaround strategy focusing on new markets and high-growth segments looks promising. Investors should monitor project execution and margin recovery closely.