DEE Development Engineers reports 18% increase in total income for Q1 FY25

DEE Development Engineers Limited (DDEL) has announced impressive financial results for the first quarter of the fiscal year 2024-25, showcasing a substantial 18% increase in total income to ₹18,817 lakhs. This strong performance highlights the company’s robust recovery and strategic growth trajectory in a competitive industry.

Financial Performance Highlights

In its latest financial disclosure, DEE Development Engineers Limited revealed significant growth across key metrics for Q1 FY25. The total income reached ₹18,817 lakhs, a notable increase from ₹15,946 lakhs in Q1 FY24, marking an 18% year-on-year growth. The company’s EBITDA saw a dramatic rise of 72.9%, climbing to ₹2,799 lakhs from ₹1,619 lakhs in the previous year. This led to an EBITDA margin of 14.9%, which represents a 472 basis point improvement from the previous year’s 10.2%.

The PAT also exhibited a robust turnaround, reaching ₹319 lakhs compared to a loss of ₹458 lakhs in Q1 FY24. The PAT margin expanded to 1.7%, up by 456 basis points year-on-year. The diluted EPS for the quarter stood at ₹0.60, a significant recovery from a negative ₹0.86 in the same quarter last year.

Strategic Developments and Operational Advancements

DEE Development Engineers Limited has been actively expanding its operational capabilities, notably through the development of the New Anjar Facility II. This new facility will increase the company’s production capacity from 6,000 MT to 15,000 MT. The expansion is expected to enhance production efficiency, reduce logistics costs, and lower manpower expenses. The facility will focus on serving the Oil and Gas sector, while the existing Palwal Facility will cater specifically to the Power sector, benefiting from reduced logistics overheads due to its proximity to the Kandla Port in Gujarat.

The company’s strategic investments are designed to capitalise on the upswing in capital expenditure within the Power and Oil & Gas industries. By preemptively establishing infrastructure and operational capabilities, DEE Development Engineers Limited aims to meet the growing demand from its core sectors effectively.

Chairman’s Remarks and IPO Utilisation

Krishan Lalit Bansal, Chairman of DEE Development Engineers Limited, expressed gratitude to the investment community for their support during the IPO. He noted that the IPO proceeds of ₹29,712.90 lakhs are being used strategically to meet working capital requirements and prepay outstanding borrowings. To date, ₹9,353.20 lakhs of the IPO proceeds have been allocated, with ₹1,798.20 lakhs directed towards working capital needs and ₹7,555.00 lakhs used for debt repayment.

Industry Position and Future Outlook

DEE Development Engineers Limited remains a leading player in India’s process piping solutions sector, with a strong foothold in industries such as oil and gas, power, and chemicals. The company’s state-of-the-art manufacturing facilities and comprehensive service offerings position it as a key player in the sector. The planned expansions and operational improvements are set to enhance the company’s ability to meet the increasing demands of its core industries.

The financial results for Q1 FY25 underscore DEE Development Engineers Limited’s successful strategic execution and robust market position. The company’s focus on automation and capacity enhancement, coupled with its investment in new facilities, demonstrates a commitment to maintaining its competitive edge and addressing evolving industry needs.