Ceigall India boasts impressive Q2 FY25 financial results with record-breaking projects pipeline

Ceigall India Limited, one of the fastest-growing engineering, procurement, and construction (EPC) companies in India, has reported its unaudited financial results for the second quarter and half year ending 30 September 2024. Ceigall, known for its infrastructure expertise in elevated roads, flyovers, bridges, rail overpasses, tunnels, and highways, achieved a revenue of ₹7,721 million in Q2 FY25, demonstrating a growth of 5.2% compared to the same quarter last year.

The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q2 FY25 also rose to ₹1,229 million, marking a 3% increase compared to ₹1,196 million in Q2 FY24. The EBITDA margin reached 15.9%, up from 15.6% in the previous quarter. This performance highlights Ceigall’s ability to maintain steady growth amid a competitive market environment. However, the Profit After Tax (PAT) saw a slight decrease to ₹655 million from ₹739 million in Q2 FY24, mainly due to higher operational expenditures.

Robust Order Pipeline Drives Confidence

Ceigall’s order book remains robust at ₹121,532 million as of September 2024, reflecting a healthy book-to-bill ratio. A major portion of this pipeline—85.7%—is attributed to roads, highways, flyovers, and tunnel projects. The company’s Managing Director, Mr. Ramneek Sehgal, noted that the strong order book is poised to drive sustainable revenue growth in upcoming quarters.

The company has emerged as the lowest bidder (L1) for two significant highway construction projects in Ayodhya, Uttar Pradesh. These projects involve the construction of a 4/6 lane Southern and Northern Ayodhya Bypass, with a total project value of ₹2,498.5 crores. Winning these bids further strengthens Ceigall’s position as a leading player in the infrastructure domain.

Mr. Sehgal also highlighted Ceigall’s commitment to financial discipline, noting that the company used IPO proceeds to repay ₹4,134 million of its existing debt, thereby bringing down its consolidated debt to ₹9,942 million as of September 2024. He emphasized that this prudent approach will help support the company’s long-term growth objectives and maintain financial stability.

Strong Standalone Financial Performance

On a standalone basis, Ceigall India’s revenue from operations grew to ₹8,096 million in Q2 FY25, up from ₹6,963 million in Q2 FY24. EBITDA increased to ₹1,018 million, with a margin of 12.6%. The company also reported a reduction in its standalone debt to ₹3,491 million, enhancing its financial resilience amid ongoing expansion efforts.

Expert Insights

Financial analysts have expressed optimism about Ceigall’s growth trajectory, citing the company’s impressive order pipeline and its ability to maintain consistent financial performance despite fluctuations in the market. Analysts believe that the company’s strategic focus on leveraging its technical expertise and expanding into high-value infrastructure projects will bolster its revenue base in the long term.

The Path Ahead

As Ceigall India moves forward, its commitment to diversifying and expanding its project portfolio while maintaining strict financial discipline remains steadfast. The company plans to continue leveraging its specialized capabilities in infrastructure development, positioning itself as a reliable player in India’s growing infrastructure sector.

The company remains optimistic about its upcoming projects, including expressways, elevated corridors, and metro projects, as they align with its strategic growth roadmap. With a robust project pipeline and solid financial health, Ceigall is well-prepared to achieve its long-term objectives and play a pivotal role in India’s infrastructure growth.

About Ceigall India Ltd

Ceigall India Limited, a leading EPC company, specializes in the construction of roads, highways, flyovers, rail over-bridges, tunnels, runways, and metro projects. The company has one of the highest revenue growth rates in the industry, with a 43.10% increase in FY2024. With over 34 completed projects and 18 ongoing ones, Ceigall has established itself as a prominent player in the infrastructure sector.