ITD Cementation expects ₹8,000-10,000 crore order inflows in FY25

Mumbai-based construction and engineering company ITD Cementation is expecting order inflow of ₹8,000-10,000 crore in the next financial year (FY25).

Speaking to CNBC-TV18, Prasad Patwardhan, CFO of ITD Cementation said, the company has an order book of over ₹7,000 crore so far, and a few orders for which bids have been submitted are still in the pipeline. He hopes to close the current financial year (FY24) with order inflows at around ₹8,000 crore.

Patwardhan stated that a larger contribution to revenues from some of these new orders will come in the next financial year.

The company is focused on keeping its balance sheet leverage as low as possible. The company’s gross debt is at about ₹860 crore as of December 2023. The net debt on the balance sheet is just over ₹400 crore. Patwardhan said that the company does not anticipate any substantial increase in debt levels.

However, in the next financial year, the working capital debt may go up a little.

ITD Cementation's revenue for the third quarter (Q3FY24) increased to ₹2,017 crore from ₹1,327 crore in the same quarter last year. Quarterly net profit rose to ₹78.39 crore, up 114% from ₹36.65 crore over last year.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also grew to ₹204 crore in December 2023, marking a 97% increase from ₹103 crore in December 2022. EBIT margins were at 10% versus 7.8% in the year-ago period.

The market capitalisation of ITD Cementation is ₹5,735 crore. Shares have gained more than 211% in the past year.