GPT Infraprojects reports strong Q2 FY25 growth with 90% PAT surge and 26.6% revenue increase

GPT Infraprojects Limited has delivered impressive financial results for the second quarter (Q2) of the fiscal year 2025, marking significant growth across key metrics. The Kolkata-based infrastructure giant announced a robust 26.6% year-over-year increase in revenue, climbing to ₹280.7 crore, and a remarkable 90.4% jump in profit after tax (PAT), reaching ₹21.7 crore. This surge is attributed to robust execution in both its core infrastructure projects and its sleeper manufacturing segment.

GPT Infraprojects’ consolidated total income also grew by 23.3%, achieving ₹289.8 crore compared to ₹235 crore in Q2 FY24. The company credited this growth to enhanced execution rates in infrastructure projects and steady demand in the concrete sleeper business, both in India and select African markets.

H2 FY25 Off to a Strong Start, Order Book Hits ₹3,609 Crore

GPT Infraprojects ended the quarter with an impressive order backlog of approximately ₹3,609 crore, nearly 3.5 times its FY24 revenue. This robust pipeline is expected to drive further growth, with an influx of ₹1,040 crore in orders recorded during the first half of the fiscal year. The infrastructure segment, contributing 93% of Q2 revenue, showcased notable performance driven by effective project management and execution strategies.

Financial Health: Debt Reduction and Successful Fundraising Bolster Outlook

In August 2024, GPT Infraprojects raised ₹175 crore through a Qualified Institutional Placement (QIP), which the company has largely deployed for debt repayment. This capital infusion, alongside prudent financial management, enabled GPT to reduce its net debt by ₹95 crore this quarter. Commenting on this achievement, GPT’s Chairman Dwarika Prasad Tantia emphasized the importance of solid financial planning, noting that a reduced debt load positions the company for sustainable growth with enhanced liquidity.

Infrastructure and Sleeper Segments Drive Expansion

The Infrastructure division, a cornerstone of GPT’s operations, posted a Q2 FY25 revenue of ₹489.8 crore, reaffirming its role as a primary revenue driver. This segment, which includes large-scale civil projects for Indian Railways, maintained strong EBITDA margins, aligned with company targets.

In the Sleeper segment, GPT saw revenue reach ₹39.4 crore, largely supported by its sleeper factories catering to Indian Railways and emerging opportunities in Africa. While demand from its South African operations remained steady, the Ghana facility is expected to contribute significantly in FY25, with the management optimistic about expanding its sleeper production across African markets.

Expert Opinion: A Foundation for Long-Term Growth

Financial experts have praised GPT Infraprojects’ recent results, highlighting the positive impact of debt reduction and the company’s QIP success. A senior analyst commented that GPT’s strategic focus on high-growth infrastructure projects, particularly those aligned with the railway sector, provides a resilient foundation for expansion. This is further supported by its ability to maintain consistent order flow and financial prudence amid macroeconomic challenges.

Dividends and Shareholder Returns

GPT Infraprojects has also announced an interim dividend of ₹1 per share as part of its commitment to delivering shareholder value. This dividend declaration underscores the company’s strong financial standing and continued emphasis on rewarding its stakeholders.

Looking Ahead

With a promising start to H2 FY25 and an ambitious revenue growth target exceeding 20% for the fiscal year, GPT Infraprojects remains well-positioned to capitalize on infrastructure opportunities both domestically and internationally. Chairman Tantia expressed optimism about the year ahead, emphasizing the company’s solid financial base, strategic debt reduction, and ongoing momentum in key projects as crucial elements for achieving sustained growth and strong cash flows.