Nacdac Infra.
Q1 FY25 Earnings Call Analysis
Construction
capex: Yesrevenue: Category 1margin: Category 2orderbook: Yesfundraise: No
💰fundraise
Any current/future new fundraising through debt or equity?
- There is no mention of any current or planned fundraising through debt or equity in the transcript.
- The company recently completed an IPO in December and received funds in January, which helped manage working capital.
- The focus for FY '26 is on reinvestment of profits into working capital, not on raising new capital.
- No references to joint ventures or external fund-raising activities for expansion; the company emphasizes standalone project execution.
- Capital allocation priorities are reinvestment in working capital rather than dividends or new fundraising.
🏗️capex
Any current/future capex/capital investment/strategic investment?
- Nacdac Infrastructure Limited plans to invest in machinery and equipment to enhance profit margins.
- Machinery purchases in the last financial year included concrete plants, pumps, and DG sets.
- For the current financial year, planned capex includes procurement of JCB excavators, an additional concrete plant, and pumps.
- The estimated capital expenditure for machinery purchase is approximately INR 1 crore.
- No current plans for forming joint ventures; focus remains on standalone projects.
- Capital allocation priorities for FY '26 are primarily on reinvestment into working capital rather than dividends or strategic investments.
📊revenue
Future growth expectations in sales/revenue/volumes?
- Nacdac Infrastructure Limited targets a minimum revenue growth of 35% to 45% for the next financial year (FY '26).
- The company aims for a conservative growth rate of 30% in FY '26 but is optimistic to achieve up to 50% growth.
- The current order book stands at approximately INR118 crores, supporting the growth targets.
- Geographic expansion into new states like Haryana and Madhya Pradesh is planned to boost growth.
- New large government projects from clients like NBCC and Bharat Electronics Limited are expected to contribute significantly.
- The company anticipates gradual improvement in profit margins alongside revenue growth.
- Short-term projects from private clients like L&T, GMR, and Apollo add to overall volume but are smaller in scale.
- Road and highway segments are targeted as new areas for growth in the coming years.
📈margin
Future growth expectations in earnings/operating earnings/profits/EPS?
- For FY '26, Nacdac Infrastructure targets a minimum revenue growth of 35% to 45%; potentially up to 50% if all aligns well.
- EBITDA is expected to improve in line with revenue growth, with margins projected to increase by 1-2%.
- PAT (profit after tax) margins are estimated to be between 9% to 11%, gradually improving as larger projects are undertaken.
- The company plans reinvestment primarily in working capital and machinery to support growth.
- Order book currently stands at INR118 crores, with average project execution timelines of about 18 months, supporting sustained revenue flow.
- New customer additions (NBCC, Swiftstack Warehousing) and pending tenders from Bharat Electronics Limited further support growth.
- Expansion into new geographic areas (Haryana, Madhya Pradesh) and segments (roads and highways) expected to drive future earnings growth.
📋orderbook
Current/ Expected Orderbook/ Pending Orders?
- Current order book stands at approximately INR118 crores as of FY 2025.
- There are 11 ongoing projects, primarily with government clients like Indian Railways (Northern Railways), Uttarakhand Peyjal Nigam, Bharat Electronics Limited, and NBCC India Limited.
- Additional tenders worth around INR30 crores and INR20 crores are under evaluation with Bharat Electronics Limited.
- The company has started new projects with NBCC and Swiftstack Warehousing in FY 2026, adding 2 new significant customers to the top 5.
- Apart from government projects, smaller private sector projects (INR3-6 crores) with clients like L&T, GMR, Apollo, Jubilant, and others continue.
- The average execution cycle for government projects is about 18 months.
- The company is targeting a minimum 30% growth in the next fiscal year with potential upside from new tenders and geographic expansion into Haryana and Madhya Pradesh.
