Ramky Infrastructure’s surprising Q1 surge: What fuelled their impressive growth in FY 2024-25?

Ramky Infrastructure Limited (RIL) has released its financial results for the first quarter of FY 2024-25, ending June 30, 2024, showing a strong growth trajectory despite the absence of a significant one-time claim that had inflated the previous year’s figures.

In the first quarter of FY 2024-25, Ramky Infrastructure Limited reported consolidated revenues of ₹569.13 crores, an increase from ₹556.80 crores in Q1 FY 2023-24. The company’s profit before tax reached ₹110.60 crores, while profit after tax stood at ₹70.98 crores, compared to ₹143.09 crores and ₹105.30 crores, respectively, in the same period last year. These figures from the previous year were bolstered by a one-time ₹50 crore claim. When this claim is excluded, Ramky’s growth is even more pronounced, with revenue from operations, profit before tax, and profit after tax showing year-on-year increases of 12.29%, 18.80%, and 28.35%, respectively.

On a standalone basis, Ramky Infrastructure Limited recorded revenues of ₹550.14 crores in Q1 FY 2024-25, up from ₹531.54 crores in Q1 FY 2023-24. The profit before tax for the quarter was ₹120.03 crores, while profit after tax amounted to ₹86.42 crores, compared to ₹141.55 crores and ₹106.40 crores, respectively, in the same quarter of the previous year. After adjusting for the one-time claim, the growth rates for revenue from operations, profit before tax, and profit after tax are 14.24%, 31.11%, and 53.22%, respectively.

Commenting on the financial performance, Y R Nagaraja, Managing Director of Ramky Infrastructure Limited, highlighted that the company has achieved progressive results quarter on quarter and year on year, with significant improvements in performance when accounting for the previous year’s one-time gain. Despite disruptions due to resource alignment during nationwide elections, Ramky achieved a revenue growth of 12.29% and profitability growth of 28.35% on a consolidated level.

N S Rao, Chief Financial Officer of Ramky Group, noted that the company’s Q1 FY 2024-25 performance reflects its strong fiscal discipline and strategic foresight. Despite economic challenges, Ramky has maintained a healthy growth trajectory and continues to optimise its capital structure to enhance shareholder value.

Ramky Infrastructure Limited remains committed to its growth strategy, operational efficiency, and exploring new opportunities in the infrastructure sector. Since its incorporation in 1994, the company has completed numerous projects in industrial infrastructure, water and wastewater treatment, roads, bridges, and urban infrastructure development, both in India and overseas.

According to industry analysts, Ramky Infrastructure Limited’s ability to achieve significant growth despite the absence of one-time gains reflects its strong operational management and strategic focus. The company’s performance in Q1 FY 2024-25 is a testament to its resilience in navigating market challenges and capitalising on growth opportunities in the infrastructure sector.