EMS Limited’s Q1 FY25 profit explosion: PAT soars 63%—What’s behind the surge?

EMS Limited, a Ghaziabad-based multi-disciplinary engineering, procurement, and construction (EPC) company, has announced a remarkable surge in its financial performance for the first quarter of fiscal year 2024-25. The company’s consolidated net profit after tax (PAT) for Q1 FY25 reached Rs. 37.16 crore, marking a substantial increase of 63.12% from Rs. 22.78 crore in the same quarter of the previous fiscal year. This growth reflects a robust performance across its operations and a strong tender activity.

Surge in Revenue and EBITDA

The company’s consolidated revenue from operations saw a significant rise of 49.51%, reaching Rs. 206.28 crore in Q1 FY25, compared to Rs. 137.97 crore in Q1 FY24. Additionally, EMS Limited’s consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 57.13% to Rs. 52.53 crore, up from Rs. 33.43 crore in the prior year. The profit before tax (PBT) also showed impressive growth, climbing by 61.80% to Rs. 49.41 crore from Rs. 30.54 crore.

Standalone Performance Highlights

On a standalone basis, EMS Limited reported a net profit after tax of Rs. 36.84 crore for Q1 FY25, a notable increase of 68.21% from Rs. 21.90 crore in the same period last year. Standalone revenue from operations surged by 80.62% to Rs. 203.72 crore, compared to Rs. 112.79 crore in Q1 FY24. Standalone EBITDA grew by 66.58% to Rs. 51.79 crore from Rs. 31.09 crore, while the profit before tax saw an increase of 66.55% to Rs. 49.00 crore.

Strategic Focus and Future Outlook

EMS Limited’s Chairman, Mr. Ramveer Singh, highlighted the company’s impressive growth trajectory, attributing it to the surge in operating income driven by increased project executions. He noted that the company’s expanding order book is a testament to its expertise in sewerage solutions and water supply systems. Singh emphasised that the company’s strategic focus aligns with the government’s emphasis on infrastructure development to enhance urban living standards and connectivity.

Singh further stated, “Our growing order book reflects our extensive expertise in sewerage solutions and water supply systems. This positions us favourably for substantial growth in the coming quarters. The government’s focus on infrastructure development, particularly in water supply and sewerage systems, aligns with our strategic goals and provides ample growth opportunities.”

Recent Awards and Projects

In the first quarter of FY25, EMS Limited received several notable awards, including a Letter of Award for a Rs. 535.19 crore project from the Uttarakhand Urban Sector Development Agency. This project involves the development of water supply and sewerage systems in Vikas Nagar, Uttarakhand, with an 18-year operation and management period. The company also secured a Rs. 141.12 crore award from Uttarakhand Power Corporation Limited for distribution infrastructure loss reduction works in Dehradun and a Rs. 119.05 crore award for sewerage and treatment works in Agra.

Established in 2010, EMS Limited offers a comprehensive range of services, including EPC and operation and maintenance (O&M) for sewerage solutions, water supply systems, and wastewater treatment schemes. The company operates across various states including Uttar Pradesh, Bihar, Uttarakhand, and Rajasthan, providing infrastructure solutions for government authorities and municipal bodies.