The construction industry in India is experiencing robust growth and is expected to reach INR 25.31 trillion in 2024, an 11.2% increase. Projections estimate a CAGR of 9.6% from 2024-2028, potentially reaching Rs 36.58 trillion by 2028. The sector contributes approximately 8% to India’s GDP and employs over 40 million people.
Price movement
With a market capitalization of Rs 9,121.06 crore, the shares of ITD Cementation India Ltd were trading at Rs 530.95 per share, increasing around 0.16 percent as compared to the previous closing price of Rs 530.10 apiece.
Matter explanation
As of February 31, 2025, ITD Cementation India’s order book hit a record ₹19,893 crore, driven by a 10% surge in new orders. The company’s market capitalization stands at approximately ₹9,106 crore, which is significantly lower than its current order book, highlighting strong growth potential.
Order Pipeline
The company secured orders worth ₹6,370 crores in nine months and is L1 on ₹800+ crores. Total work in hand is ₹20,000 crores (50% government, 42% private, 8% PSU). It anticipates ₹9,000 crores in order inflow for FY25, targeting ₹12,000-₹13,000 crores for FY26.
Major Projects
The company secured major orders, including Vadhvan Port and IKEA projects worth ₹1,600-1,700 crores each. Key projects like Chennai Metro, Chitravathi, Project Varsha, and Seabird are progressing well, while Bangalore Metro is nearing completion. These developments highlight steady execution and strong order inflows.
Financial performance
The company reported Q3 FY25 revenue of ₹2,250 crores, up 11% YoY, with a 9.5% EBITDA margin and ₹87 crores profit after tax. Nine-month revenue rose 21% YoY to ₹6,600 crores, with a 9.9% EBITDA margin and ₹259 crores profit, marking a 41% increase from ₹185 crores.
Also read: Market leader stock to buy now for an upside potential of more than 25%; Do you own it?
Operational Insight
The company currently supports operations up to ₹10,000 crores, with potential growth to ₹13,000-₹14,000 crores through additional capex and manpower. It focuses on technological advancements like larger cranes and piles to boost efficiency and maintains an under-100-day net working capital cycle with effective receivables collection.
Future Outlook
The management remains optimistic about order inflow and revenue growth, maintaining a 20%-25% annual growth target. The new promoter is expected to drive investments, especially in green energy and infrastructure. While no acquisitions or name changes are planned, the focus is on expanding into new segments for future growth.
Capex Plans
The company’s capex for the first nine months of FY ’25 stood at ₹100 crores, with a full-year estimate of ₹120-₹125 crores. Future capex will depend on major upcoming projects and possible new segment expansions, aligning with growth opportunities and strategic investments.
Company Profile
ITD Cementation India Limited is involved in heavy civil; infrastructure; and engineering, procurement, and construction (EPC) business and operates in India. The Company is engaged in marine structures, mass rapid transit systems, airports, hydroelectric power, tunnels, dams, and irrigation.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
