Enviro Infra Engineers Ltd

- In September 2023, Enviro Infra Engineers Limited conducted a private placement, raising INR 58 crores which was added to equity and reserves. - For two HAM projects (Mathura and Saharanpur), term loans totaling INR 210 crores have been sanctioned (INR 90 crores from Kotak Bank for Mathura and INR 120 crores from HDFC Bank for Saharanpur). The company is infusing additional equity contributions (INR 30 crores for Mathura and INR 40 crores for Saharanpur). - For future HAM projects in the bid pipeline worth INR 500-600 crores, around INR 400 crores in term loans is expected to be taken. - The company raised around INR 570-650 crores through an equity issuance (book build issue) recently, with a portion earmarked for debt repayment, working capital, equity for HAM projects, and inorganic growth. - Working capital limits from banks are expected to reach INR 1,000 crores with existing credit utilization around INR 400-450 crores.

- The company currently owns machinery valued around INR35 crores and industrial land; it has remained asset-light historically. - No major gross block or significant capex is foreseen in the near future. - Around INR35% of the proceeds from recent equity issuance is allocated for strategic purposes: - 10% is earmarked for inorganic growth or acquisition of a technological buyout. - 25% is for general corporate purposes (GCP). - The company raised INR58 crores via private placement in September 2023, added to equity and reserves. - Existing funds from equity proceeds are parked in liquid funds and fixed deposits for judicious future use. - Capex related to equipment or plant purchases was around INR11 crores recently, with no indication of heavy upcoming capex. - Focus remains on bidding for more projects and expanding order book rather than heavy capital investment.

- The company targets a fresh order inflow of around INR 2,000 crores in the current financial year, with bids of approximately INR 4,000 crores underway (Page 10, 13). - Execution of existing order book (~INR 1,960 crores) is expected over 18-24 months, with new orders contributing to revenue growth starting from FY26 (Pages 11, 13). - A CAGR growth rate of 35%-40% over the next four to five years is projected, driven by expanding government projects and sector opportunities (Page 10). - Revenue growth rate of about 50% is expected, with the ratio of wastewater treatment projects increasing to 60%-65% in FY25 (Pages 7, 13). - Revenue contributions from new projects are anticipated to start post-monsoon (from October), aiding H2 growth (Page 13). - The company expects to maintain strong growth due to increasing government capex and sector demand (Pages 20, 10).

- Enviro Infra Engineers Limited targets a strong growth trajectory with a CAGR of 35% to 40% over the next 4-5 years. - The company expects to add around INR 2,000 crores in fresh orders in the current financial year, supported by a strong bid pipeline. - Revenue growth is supported by a shift towards wastewater treatment projects, which will increase their share to 60%-65%. - Management aims to maintain EBITDA margins around 25%, underpinned by in-house design, execution capabilities, and sustainability initiatives. - Net profit growth has been strong, with H1 FY25 net profit rising 106% year-over-year, and EPS for H1 FY25 at 4.85 versus 2.61 in FY24. - Operating cash flows expected to turn positive in coming quarters as projects progress and cash cycle normalizes. - Overall, the company is confident of sustaining high return ratios and strong margin profile going forward.

- Current order book stands at approximately INR 1,960 crores for execution. - Separate operation and maintenance order book is around INR 750 crores, spanning 5 to 15 years. - The company has bid for around INR 800 crores worth of projects. - A fresh order inflow of around INR 2,000 crores is targeted for the current financial year, with active bidding on projects exceeding INR 3,500 to 4,000 crores in pipeline. - Total bidding pipeline includes projects in multiple states, focusing on wastewater treatment and water supply schemes. - The company expects to maintain a CAGR growth rate of 35%-40% over the next 4-5 years. - Execution time for existing orders is generally 18 to 24 months.