Aarvi Encon Limited — PPTs, 02-06-2025: Investor Presentation

1. Financial Highlights:

Operational income rose 25.7% YoY to ₹5104 Mn in FY25, while PAT fell 11.5% YoY to ₹100 Mn. EBITDA increased 6.3% to ₹134 Mn, but the EBITDA margin dipped to 2.63% from 3.10%. Q4 saw a 40.2% YoY jump in operational income to ₹1445 Mn, with EBITDA margin improving to 3.04% and PAT margin at 2.08%. Margin pressures came from rising finance costs and ESOP expenses. Net worth grew steadily to ₹1253 Mn; borrowings rose to ₹268 Mn.

2. Strategic Initiatives & Growth Drivers:

Aarvi expanded its workforce to over 6,600 deputed engineers, focusing on oil & gas, engineering, renewables, and petrochemicals. Growth is driven by technical staffing, O&M, and shutdown services. The company leverages its in-house talent database and referral programs to efficiently scale, supported by new client wins and project renewals, alongside investments in ESOPs to retain talent.

3. Business Developments:

Secured a ₹186 Cr contract renewal and a fresh ₹38 Cr order from Gujarat State Petronet. Added 20+ new clients in FY25, fueling revenue growth. Won India’s Top Brand of the Year Award – 2025, underscoring strong market recognition.

4. Market Position & Competitive Advantage:

Recognized as India’s leading technical staffing provider, Aarvi has a large, multi-sector workforce exceeding 5,000 professionals. Its extensive resume database and skilled recruiters enable quick, cost-effective staffing solutions from project design through O&M, offering a differentiated end-to-end service.

5. Investor Implications:

Growing client base and rising revenue highlight positive growth potential despite margin pressures from ESOP and finance costs. Execution risks related to low-margin contracts and higher interest burden warrant monitoring. Market leadership and sector diversification support confidence in scalable long-term growth.