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

1. Financial Highlights:

Aarvi Encon’s revenue rose to INR 5,104 Mn in FY25 from INR 4,061 Mn, signaling a solid topline rebound. EBITDA inched up to INR 134 Mn, though margins slipped to 2.63% from 3.10%, reflecting margin pressures amid rising costs. PAT declined to INR 100 Mn with a margin of 1.96%, impacted by higher finance charges and depreciation. The balance sheet remains healthy with a net worth of INR 1,253 Mn, low gearing at 0.14x, and improved cash reserves at INR 767 Mn.

2. Strategic Initiatives & Growth Drivers:

The focus is on deepening client relationships through cross-selling and tapping new clients in Oil & Gas, Engineering, and Renewables. Expansion into international markets like UAE, Saudi Arabia, and the UK is underway via a dedicated sales force. Investments in talent, digital transformation, and operational efficiencies continue. Plans to enter Automobile, Marine, Defence, and Healthcare sectors aim to diversify revenue streams.

3. Business Developments:

Acquisition of UAE-based MNR Technical Services strengthens Middle East presence. The company maintains marquee client engagements including HPCL Mittal Crude Tank Terminal and refinery projects with L&T ECC, Daelim, and Toyo Engineering, showcasing execution strength across project management and shutdown services.

4. Market Position & Competitive Advantage:

Aarvi is India’s top technical staffing firm with 6,600+ personnel deployed, diversified across Oil & Gas (41%) and Engineering (36%). Its asset-light model offers cost efficiencies and rapid scalability, serving 150+ global clients. Strong long-term client ties and a wide geographic presence underpin its competitive edge.

5. Investor Implications:

Growth prospects are encouraging due to robust demand in infrastructure and engineering staffing. Margin pressures and higher costs warrant monitoring, but international expansion and sector diversification support business resilience. Investors should watch margin recovery and acquisition integration for sustained value creation.