Deepak Builders & Engineers India Limited — Results, 31-05-2025: Integrated Filing- Financial

Deepak Builders & Engineers India Limited has announced a board meeting on May 30, 2025, approving the financial results for the quarter and half-year.

Revenue Performance: Total revenue for FY25 reached ₹581.79 Cr, up 13.8% YoY from ₹511.40 Cr. Growth was mainly driven by construction contracts and material sales.

Profitability and EPS: Net profit declined to ₹56.75 Cr from ₹60.41 Cr, with EPS at ₹14.04 vs. ₹16.84 previously. Profit before tax remained stable at ₹81.04 Cr. Rising costs exerted margin pressure despite steady top-line growth.

Operational Costs: Expenses increased to ₹505.61 Cr from ₹434.96 Cr, largely due to a sharp 25.5% rise in raw material consumption to ₹336.85 Cr. Employee costs remained stable at ₹31.22 Cr, while finance costs edged down slightly to ₹27.72 Cr. The company is facing cost inflation challenges impacting margins.

Key Metrics: Depreciation dipped to ₹6.80 Cr. Other expenses showed moderate growth, signaling some operational leverage constraints.

Balance Sheet / Cash Flow Health: Consolidated long-term borrowings dropped to ₹51.05 Cr from ₹80.42 Cr, with short-term borrowings rising marginally. Cash and equivalents improved significantly to ₹9.48 Cr from ₹0.09 Cr. Free cash flow stayed negative due to higher working capital driven by inventory and receivables build-up.

Management Outlook: IPO proceeds of ₹217.21 Cr were mostly utilized (₹206.80 Cr) for working capital and debt repayment. Remaining funds are parked in fixed deposits. No dividend declared yet.

Final Takeaway: The company’s solid revenue growth is tempered by margin pressures and working capital demands, weighing on profitability and cash flow. Improved debt position post-IPO supports future growth, but investors should monitor cost control and working capital management closely for medium-term earnings stability.