SPML Infra Ltd

- The company has recently raised Rs.346 crore through preferential allotment of shares and warrants. - Out of this, Rs.290 crore will be received in cash, and the balance will come through conversion of loan to NARCL. - Promoters contributed Rs.190 crore additionally, reinforcing confidence in the business. - The current Fixed Deposit (FD) balance is around Rs.280 crore. - Further equity issuance is planned, with Rs.1 crore expected within the next 18 months from warrants. - Total FD is expected to reach approximately Rs.460 crore from the further equity issuance and expected Vivad se Vishwas amount. - The funds raised and anticipated will be utilized exclusively for business purposes. - For future needs, the company can allot warrants (majority held by promoters) anytime if money is required. - The company is also approaching banks to obtain further bank guarantees and limits for bidding larger projects.

- The company raised Rs.346 crore through preferential allotment of shares and warrants, of which Rs.290 crore will be received in cash, and balance via conversion of loan to NARCL. - Rs.280 crore is currently held as fixed deposits (FD), expected to increase to around Rs.460 crore with further equity and Vivad se Vishwas scheme receipts. - All funds raised, including promoter contributions, will be utilized **solely for business expansion and operations** in the water sector, not for debt repayment. - The company plans to take advantage of growing opportunities in water EPC projects, targeting selective, fully funded bulk water tenders with high profitability. - No specific capex amount or detailed strategic investment outline has been disclosed, but focus is on expanding order book and bidding capability with liquidity support.

- The company expects gradual improvement in operations and tender flow from Q3 FY’25 onwards due to election-related slowdowns easing. - Current order book stands around Rs.1,800 crore (SPML and JV), with execution expected over 2 years. - Target to win Rs.1,500 to Rs.2,000 crore orders annually going forward, from a selective bid pipeline of around Rs.5,000 crore. - The company aims to maintain a "boutique" order book, focusing on higher-margin, fully funded, and easy-to-execute orders. - With increasing order wins and higher-margin projects, top line and profitability are expected to grow from FY’26. - New orders are targeted at 10-12% EBITDA margin, potentially pushing overall margins closer to 8% in FY’26. - The company sees substantial opportunity in the water sector driven by government schemes like Jal Jeevan Mission and other large-scale irrigation projects totaling over Rs.19 lakh crore.

- SPML Infra targets Rs.1,500 to Rs.2,000 crore order book addition in the next 6 months, aiming to reach Rs.2,500 to Rs.3,000 crore closing order book for FY’25. - Focused on boutique, high-margin orders with 10-12% targeted EBITDA margin for new orders, improving from current 5-6%. - H2 FY’25 expected to see better performance, especially Q4 due to order inflows and JV commissions; Q3 expected to be stable. - PAT guidance for FY’25 aims at Rs.60+ crore, requiring Rs.40+ crore in H2; however, Q3 may be muted, with better results projected in Q4. - Long-term growth expected driven by government initiatives like Jal Jeevan Mission, river linking, irrigation projects, and Rs.12 lakh crore water EPC schemes. - The company plans selective bidding within Rs.5,000 crore tenders and may enter JVs to secure upfront equity revenue of 1.75-2.5%. - Focus on sustainable water infrastructure, with a 10-year growth horizon in India’s water sector.

- Current order book is approximately Rs.1,800 crore, including SPML Infra and JV orders. - Without JV, SPML's standalone order book is around Rs.900 crore (50-50 split between SPML and JV). - Company has bid for around Rs.5,000 crore worth of tenders, selectively participating based on criteria such as profitability and funding. - Out of Rs.5,000 crore bids, Rs.1,400-1,500 crore is L1 (lowest bidder), with some uncertainty in conversion to orders due to election delays and tender finalisation. - Expect to receive Rs.1,500 to Rs.2,000 crore of confirmed orders in the next 6 months, leading to a closing order book of about Rs.2,500 to Rs.3,000 crore by FY'25 end. - Typical execution timeframe of orders is about 2 years. - Order pipeline mainly targets bulk orders ranging from Rs.300 crore to over Rs.1,000 crore. - JV revenue share recognized in top line is on average around 30%.