Aprameya Engineering LtdQ1 FY25Healthcare Equipment & Supplies

Aprameya Engineering Ltd

Q1 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Revenue guidance

Category 3

→Aprameya aims to achieve sustained growth faster than the healthcare infrastructure industry's CAGR of 22% over the last decade.
→The company is optimistic about securing good orders across multiple states due to its proprietary products and strong entry barriers in tenders.
→With an expanding geographic footprint into states like Bihar, Uttarakhand, Assam, Chhattisgarh, Daman, and Sikkim, Aprameya is positioned for scalable growth.
→Order book stood at INR 60 crores, with expectations for continuous order inflow driven by unique, lifesaving proprietary solutions.
→Revenue grew by 108% YoY to INR 136 crores in FY25, backed by a higher share of high-margin turnkey projects.
→Management expresses confidence in maintaining and improving margins and increasing service contracts, which contribute recurring revenue.
→Future guidance hints at steady revenue growth, though no specific growth percentage is promised.

Category 3

→Aprameya aims to sustain strong growth, leveraging proprietary turnkey projects and expanding services.
→The company is confident in maintaining current margin levels, focusing on high-margin projects and selective bidding.
→EBITDA margin improved to 18% in FY25; this level is expected to be sustainable with disciplined cost and capital management.
→PAT margin increased to 12% in FY25, reflecting operational efficiencies.
→Growth driven by geographic expansion into underpenetrated states like Bihar, Assam, and Uttarakhand.
→Expanding order book with INR60 crores executing over 5-6 months and targeting high-margin contracts.
→Focus on increasing services and CMC contracts post three-year warranty completion, which have higher margins.
→Entering specialized proprietary product markets (e.g., EP lab systems) to boost margins and revenues.
→Cash flow improvements expected due to reducing debtor cycles.
→Management confident in delivering sustained earnings growth but cautious on aggressive margin guidance without contract clarity.

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Yes

→The management did not mention any specific plans for raising new debt or equity during the expansion.
→They emphasized reducing the debtor cycle to improve cash flow and funding projects "as per our requirement only."
→Capex for expansion will be gradual and aligned with cash inflows from ongoing projects, not requiring large upfront investments.
→For exact capex figures or potential fundraising details, the management directed investors to contact their IR agency, Stellar, for specific queries.
→The company aims to maintain manageable debt levels and has been successfully reducing net debt year-on-year.
→Overall, the approach is cautious, focusing on operational cash flow and selective project bidding without immediate plans to raise significant external funds.

Yes

→Current order book: Approximately INR 60 crores.
→Execution timeline: Orders expected to be completed within 5 to 6 months.
→Geographic split: 60%-70% from Maharashtra, 10%-20% from Rajasthan, remaining from Gujarat.
→Growth outlook: Company optimistic about securing additional orders due to sector growth and strong entry barriers.
→Previous projects and order pipeline suggest sustained opportunities for expansion across multiple states.
→The company expects to maintain steady order inflow aligned with industry CAGR growth trends.

Yes

→Capex for expansion into new states will be gradual, not a one-time large investment; focus is on brownfield projects (working inside existing buildings) rather than greenfield projects.
→Capital investments in new states will be phased over 2-3 months per project rather than upfront heavy capital.
→The company plans to control capex carefully to avoid hampering cash flow and maintain a balanced inflow and outflow ratio.
→Specific capex figures are not shared publicly; investors are encouraged to contact the IR agency for detailed queries.
→Debt levels have been declining year-on-year, and the company aims to manage working capital efficiently during expansion to avoid raising significant new debt.
→Expansion will be selective, focusing only on projects where margins, revenue, and credit terms are comfortable to secure.

How does Aprameya Engineering Ltd rank vs peers in Healthcare Equipment & Supplies?

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1Aprameya Engineering Ltd

Rev 3Mar 3

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