GPT Infraprojects Ltd Share Price – NSE  /  BSE

Infrastructure Developers & Operators, Small Cap

The order includes earthwork in embankment, including blanketing, construction of minor bridges, subways, side drains, toe walls, P.Way Track linking, transportation of P.Way material, supply and stacking of ballast, leading out of ballast, at welding and other ancillary works between Ch.28600.00 m to 69700 m in connection with DHO-SRMT GC work under North Central Railway, Agra, UP.

The said project is worth Rs 135 crore and the contract is in joint venture with GPT’s share being 51%.

GPT Infraprojects is the flagship company of GPT Group and is a premier infrastructure company based out of Kolkata. The company operates through two business divisions — infrastructure and sleepers. The company is engaged in the execution of civil and infrastructure projects, especially large bridges and ROBs for Railways. In sleepers, the company manufactures and supplies concrete sleeper for Railways in India and Africa.

The company’s consolidated net profit jumped 97% to Rs 14.91 crore in Q3 FY24 as against 7.57 crore posted in Q3 FY23. Revenue from operation increased 26.6% YoY to Rs 253.76 crore in Q3 FY24.

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CRISIL said that the rating upgrade reflects the improved business risk profile of the company owing to growth in revenue at compound annual rate of 9% during the four fiscals through 2023 and operating margin of more than 11%.

Orders of Rs 2,990.8 crore as on 31 December 2023 (3.7 times of fiscal 2023 revenue), along with revival in profitability from the concrete sleeper division, strengthen the business risk profile. Streamlined project execution and improvement in realisations led to reduction in unbilled revenue exposure as on 31 December 2023.

This has led to improved working capital cycle, with expected gross current assets (GCAs) at less than 200 days as on March 31, 2024 (292 days as on March 31, 2021).

High interest-bearing working capital limit and its utilisation has reduced, which resulted in reduced interest outgo during the nine months of fiscal 2024. This is likely to strengthen the debt protection metrics, with interest coverage ratio more than 4 times in fiscal 2024 (2.5 times in fiscal 2023).

Sustenance of improvement in the business risk profile and working capital cycle will remain a key rating sensitivity factor.

The ratings reflect the extensive experience of the promoters in the civil construction business, and the strong project execution capabilities, healthy order pipeline and moderate financial risk profile of the company.

These strengths are partially offset by large working capital requirement and susceptibility to risks inherent in tender-based business.

GPT Infraprojects is the flagship company of the GPT group, which undertakes civil infrastructure projects and manufactures concrete sleepers and iron castings for railways and healthcare sectors.

The scrip fell 1.22% to currently trade at Rs 181.50 on the BSE.

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GPT Infraprojects has received an upgrade in credit ratings from CRISIL at CRISIL A-; Stable/ CRISIL A2+.

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GPT Infraprojects has bagged an order of Rs 114 crore from East Central Railway Mahendrughat, Patna, Bihar for construction of Station building, Service building, S& T buildings, Electrical buildings, Residential building, Approach road, High level Platform between Supaul - Triveniganj section in connection with new rail line project of Araria-Supaul in Samastipur division of East Central Railway. This contract is in Joint Venture with GPT's share being 49%.

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