Patel Engineering Reports Robust FY25 Performance, Eyes Sustainable Growth Ahead....
Key Financial Highlights – FY25.....
- Revenue from Operations surged to ₹5,093 Crores, marking a 12.09% growth over FY24 (₹4,544 Crores).
- Operating EBITDA climbed to ₹733 Crores, with an EBITDA margin of 14.40% (up from ₹690 Crores in FY24).
- Net Profit stood at ₹242 Crores, reflecting a net margin of 4.75%.
- Profit Before Tax (excluding exceptional items) rose sharply by 49.38% to ₹477 Crores, compared to ₹319 Crores in the previous fiscal.
- Gross Debt reduced significantly to ₹1,603 Crores, down from ₹1,886 Crores in FY24.
Q4 FY25 Performance Snapshot:
- Quarterly Revenue rose to ₹1,612 Crores, a robust 20.00% year-on-year increase from ₹1,343 Crores in Q4 FY24.
- Q4 Operating EBITDA came in at ₹218 Crores, with a margin of 13.55%.
- Quarterly Net Profit registered at ₹33 Crores, with a 2.03% margin.
Strong Order Book and Outlook:
As of March 31, 2025, Patel Engineering boasts a healthy order book worth ₹15,218 Crores. In addition, the company holds ₹2,500 Crores worth of L1 orders and confirmed contracts received post-March, further bolstering its project pipeline.
The company is strategically aligned with the Indian government’s growing thrust on renewable energy, hydropower, pumped storage, and tunneling projects. These segments, where Patel Engineering holds strong domain expertise, are expected to drive significant opportunities in the near future.
Reasons for the fall of Net Profit:
The company that specialises in engineering, procurement, and construction, with significant expertise in tunnels and underground projects for hydroelectric and dam developments, recorded a net profit of ₹38.2 crore, representing a 72.7% decline for the fourth quarter, as compared ₹140 crore for the same period last year. This decline is due to exceptional items, which is a non - recurring expenditure. This means it will not happen in the next quarter.
The exceptional items for the quarter ended March 31, 2025 of ₹87.11 crore include provision made for impairment of investment and loans and advances in associate companies and write of certain receivables. This is a non - recurring expenditure.
Management Commentary and Future Plans:
Backed by its execution strength and an improving sectoral landscape, the company remains optimistic about maintaining sustainable growth. The sharp reduction in debt levels and interest costs during FY25 also contributed to an upgrade in its credit rating to A--, reflecting enhanced financial health.
The management reiterated its commitment to financial prudence, operational excellence, and stakeholder value creation. With a solid financial base, strong project pipeline, and a favorable industry outlook, Patel Engineering is well-positioned to capitalize on emerging opportunities and accelerate its next phase of operational expansion and sustainable growth.
Analysts' Views:
Two analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 44.9%.
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