GPT INFRAPROJETCS LTD (NSE: GPT) Q3 2025 Earnings Call dated Feb. 05, 2025
Corporate Participants:
Atul Tantia — Executive Director and Chief Financial Officer
Analysts:
Darshil Pandya — Analyst
Hardik Gori — Analyst
Atharva — Analyst
Bhavik Bajwa — Individual Investor
Hiten Boricha — Analyst
Taha Ansari — Analyst
Shivam — Analyst
Presentation:
Operator
Thank you ladies and gentlemen, good day and welcome to GPT Infra Projects Limited Q3 and Nine Months FY ’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assessments during the conference call, please signal an operator by pressing the star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Atul Tantia, Executive Director and CFO. Thank you, and over to you, sir.
Atul Tantia — Executive Director and Chief Financial Officer
Thank you thank you. Good afternoon, everyone, and a warm welcome to the GPT Intra Projects Limited conference call for the 3rd-quarter ended 31st December 2024. I hope you all had the opportunity to review the financials as well as the presentation uploaded on our website and the websites of the stock exchanges yesterday. I will briefly cover the key highlights for the quarter. Joining us on the call today is also Stellar IR, our Investor Relations Advisors. Some of the significant milestones achieved during the quarter and the nine months ended, 31, 2024. The external long-term credit rating of the company has been upgraded by CRISIL to A stable from A-minus table. This is a very significant milestone because it allows the company a lot of comfort in terms of banking limits, facilities that it enjoys and also allows the company to reduce its cost of funds. In-line with this and in-line with our earlier commitment, the consortium members have also released part pledge of their shares of the promoters, which were pledged towards the working capital of the company from 51% to 30% of the total shares. We are in talks with them to gradually bring this down further. The order book backlog stands at a healthy INR3,332 crores with an order inflow of INR1,040 crores during the year, including incremental orders from existing contracts. We are on-track to achieve a 15% — 13% to 18% kind of growth in FY ’25. For the nine months ended FY ’25, we have achieved the highest-ever revenue as well as profits in the company’s history. The management has also announced a second interim dividend with the record date of February 10, 2025. Now moving ahead to our financial performance for the 3rd-quarter and nine months ended 31st December 2024. Our revenues for Q3 FY ’25 stood at INR273 crores on a standalone basis, which compared to INR246 crores last year, representing a growth of 11% Y-o-Y. On a consolid basis, the revenue stood at INR278 crores compared to INR254 crores for the last year, representing a growth of 10%. On nine months basis, the revenue were at INR790 crores on a standalone basis, which were higher by 13% Y-o-Y as compared to INR702 crores last year. And on a consolid basis, the revenue stood at INR807 crores compared to INR723 crores last year, which is a growth of 12%. In both the standalone and consolidated numbers, we have set a revenue target growth of 15% to 18% for the current fiscal, which should be achieved. This growth will be majorly driven by a significant execution in the Infrastructure segment, which accounts for close to 93% to 94% of our total revenues. Our standalone EBITDA for the quarter stood at INR36 crores compared to INR32 crores, representing a growth of 13% Y-o-Y and EBITDA for the nine months was at INR110 crores compared to INR91 crores, that is a growth of approximately 21%. In terms of consolidated EBITDA, the same came in at INR36 crores for the quarter compared to INR30 crores last year, representing a growth of 18% and EBITDA for the nine months stood at INR103 crores compared to INR92 crores, which is a growth of 11%. As I said earlier, the company has declared interim dividend, a second interim dividend of INR1 per share. The record date for the same has been fixed as February 10, 2025, maintaining our dividend policy. We are confident of maintaining a long-term EBITDA hurdle rate of 13%, which has been historical guidance by us as well. With the improvement in revenue, the operational efficiencies have kicked-in, which has helped us to ensure that the long-term EBITDA is maintained and we look at a slightly improvement from there as well. The cash flows also continued to be strong with the reduction in interest cost. There has been a growth in the profit exceptionally for the consolid PAT atees INR21 crores for the quarter ended 31st December 2024, growing by 44% from INR15 crores last year. Standalone PAT for the Q3 FY ’25 was at INR22 crores, that is rising by 45% from INR15 crores last year. In terms of our segment, the infrastructure segment contributes to almost 93% of our business and stood at report revenues of INR740 crore — INR748 crores for the nine months ended 31st December 2024. The key contracts continue to perform well like NHAI, Ganga Bridge, RVNL Kuna Expressway, Matraj, Majarat, Mumbai and etc. This segment has an order backlog of INR3,115 crores. The sleeper segment has generated revenues of INR60 crores during the quarter during the nine months ended 2020 — 31, 2025, driven majorly by outstanding performance of the domestic business as well as some contribution from the South African business. The Ghana factory is also about to start shortly post the elections there. With a trying order book and reduced debt positions, we are well-positioned to navigate the dynamic landscape and continue to see good cash flows from our customers. As we move forward, we are confident in our ability to capitalize on the positive momentum generated by these factors. Our focus on maintaining a robust and healthy order book coupled with our continuous efforts to optimize our financial structure lays a good foundation for our growth. The order book of INR3,332 crores are represents almost 3.3 times our FY ’24 numbers, which is a healthy order book for — giving good to the management for the future projections. With this, I would like to open the floor for any question-and-answers and I would request the moderator to kindly queue the questions, please. Thank you.
Questions and Answers:
Atul Tantia
Thank you. Thank you very much very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. If you wish to remote yourself from the question queue, you may press star N2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Darshil Pandya from Finterest Capital. Please go-ahead.
Darshil Pandya
Hi, good evening. Am I audible?
Operator
Sure, yeah. Please go-ahead.
Darshil Pandya
Hi, sir. So just wanted to know what are the current debt levels as on as of December and what would be the future interest cost that would be paying will it be similar to as what we paid-for this quarter or how will it be because we guided for around INR20 crores of interest cost going-forward post the QIP is done. So just wanted to understand that.
Atul Tantia
Sure. The debt level is currently about INR100 crores, which includes long-term and short-term debt. In terms of this post the QIP. In terms of interest cost for the nine months, we have incurred interest cost of almost INR19.5 crores. Obviously, the first-half was pre-QIP. The second-half is including the QIP numbers. So we expect — we are still firm on the number of INR20 crores annual interest cost, which will be for FY ’26 or slightly lower.
Darshil Pandya
Got it. And sir, since our —
Atul Tantia
So honestly, what has also happened is with the improvement in the credit rating, our interest cost, like I said earlier, has also come down. So average borrowing cost is below 9% now.
Darshil Pandya
All right. Got it. And sir, since post-UIPU, we have been saying that we could bid for big orders for more than INR1,000 crores as well. So since then, have we bidded for any projects or are there any pipelines of bidding any for —
Atul Tantia
We have bidd almost seven or eight contracts recently. The prices have not open because of the budget. Now that the budget going by, the prices will be opened. And then once we are L1, there only be little know of the outcome.
Darshil Pandya
Right. And when I say the election is going to be complete in Africa region because Ghana facility has been — we have been hearing it for a while now that you know the passenger
Atul Tantia
Elections in Ghana have been recently-completed, they are in-line with the US elections. So we should get the factory there up and running in the next couple of months.
Darshil Pandya
And final question would be on, since we have reduced the guidance now from 2025 to 15% to 18 odd percent. I just want to understand what led to this lowering the guidance or is it execution issue or what is the issue currently?
Atul Tantia
It’s not actually lowering the guidance. What has happened is because of Kumbh in Prayagraj and UP area, a lot of restrictions were there. So that is why a slight dip in the operations there, but we are still on-track to achieve to an 18% kind of number for the year, which is a good number.
Darshil Pandya
Of course, it’s a good number. And for next two to three years what we have been saying is that intact because of this?
Atul Tantia
For the Kumbh mela, it was almost a two month kind of effect on that. Next going-forward, it should be there. However, the profit guidance would remain what we had given earlier.
Darshil Pandya
Correct. Got it, got it. I have some few more questions. I’ll get back-in the queue. Thank you so much.
Atul Tantia
Thank you.
Operator
Thank you. Our next question is from the line of Hardik Gori from Alpha Plus Capital Associates. Please go-ahead.
Hardik Gori
Thanks for taking my question. Sir, with lower budget allocation towards road infrastructure projects. So do you foresee a slowdown in new order inflows?
Atul Tantia
So there’s not a — I would say, a significantly lower allocations. The allocations on increased. So it’s almost at the INR2.5 lakh crore number, which was there last year as well. So we don’t expect a slowdown in the order inflow. We expect order inflow to be the — for us to be around the INR2,000 crore mark going-forward as well, INR1,000 plus.
Hardik Gori
Got it, got it. And could you also provide an update on current line and how many projects are in the tendering stage and how many are in — we are ranked L1.
Atul Tantia
So L1, we will announce as and when it is done, like I said to the previous gentlemen, we have bid for some seven or eight large contracts recently. However, due to the elections, the prices were not opened and we expect that to happen shortly. Got it. Got it, got it. Thanks. That’s all from my side.
Operator
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Atarva from. Please go-ahead.
Atharva
Sir, am I audible? Yes, yes. Sir, actually I want to ask you about H1 FY ’25 cash-flow result. Your net cash-flow from operation is negative INR20 crores. So can you explain, sir?
Atul Tantia
Okay, where how do you get that number?
Atharva
Sorry, sir, from your in screener September column that PDF sir
Atul Tantia
September?
Atharva
Yes, sir. One second, sir.
Atul Tantia
The net cash from operations is not negative.
Atharva
Okay. One more
Atul Tantia
So net cash from operations is negative, because we have made a lot of the payments in terms of the — or we had answered this in the last quarter itself. With respect to the trade payments, you reduced that a lot post the QIP. So that is why from operations, it becomes negative temporarily.
Atharva
Okay, okay. Yes, sir, I’m talking only September 2024 quarter that you correct.
Atul Tantia
So if you see the trade payables and other adjustments have reduced by almost INR90 crores, which is despite the increase in the operations. This is because of the QIP we were able to liquid reduce your other payables.
Atharva
And second question is, what about your AFO to PAT conversion for FY ’25 because first-half is negative INR20 crore. So can you no guidance
Atul Tantia
No, no, it will be positive. It is positive. CFO to PAT would be close to 80%.
Atharva
Okay. Okay, that’s a good number. Yeah. Okay, sir. Thank you, sir.
Atul Tantia
Thank you.
Operator
Participants who wish to ask a question may press star and one. The next question is from the line of Bhavik Bajwa, an Individual Investor. Please go-ahead.
Bhavik Bajwa
Hello. Hello, sir, am I audible?
Atul Tantia
Yeah. Please go-ahead.
Bhavik Bajwa
Yeah, yeah. So sir, first of all, congratulations for a really good set of numbers. Sir, I have a couple of questions. The first question is with respect to the order book. So as you said that the government’s focus in this budget has not been primarily towards the capex. So are we confident of maintaining our order book, which is 3 to 3.5 times of our revenues? And I’m asking this question because firstly, our order book is concentrated towards mainly RVNL and NHAI and the spending has slowed down a bit. And also in the last two quarters, we’ve not had significant order wins and our executable order book has been on decline since then, especially in the last two quarters. So wanted some update on that.
Atul Tantia
So we have bid for certain large contracts, like I said earlier, these contracts are around the INR800 crore to INR1,000 crore mark. There are seven to eight such contracts. We expect them to open shortly and hopefully we should — in one or two of them, we should get an L1 status and then convert that to order. So the — in terms of the — how do you call the order inflows or the execution from the government, we don’t expect a slowdown. This is a sector which is a key focus of the government. And overall capex, if you look at it has been announced in the budget at INR11 lakh crores, which was what it was last year as well. So government has not reduced its outlay on capex in the — for the country.
Bhavik Bajwa
Correct, correct. And sir, my second question is that after QIP, we have significantly reduced our debt. So in future, maybe in the next couple of years, is there a plan to make a GPT in fact debt-free or maybe something like that or do we continue to hold INR100 crores of debt on the balance sheet always?
Atul Tantia
So we have INR100 crores as of now, which includes equipment finance on other long-term debt as well. We are reducing the debt every quarter and we expect I would not say debt-free, but I think we should — we have a target for that by FY ’26, we should bring it down below INR75 crores.
Bhavik Bajwa
Okay. Okay, that’s great. And sir, my last question is that the market sentiment has not been good and even the stock has corrected by more than 40%. So are we thinking of lifting the sentiment maybe in the form of buyback because we still have room to increase the holding to 75%. Like after the QIP, I think the promoter holding is now down below 70%. So is there any such thought by the Board?
Atul Tantia
The Board, I think we have done a recently QIP, so I’m not sure whether the SEBI or LODR allows you to do that or not. Anyway the Board doesn’t have any such proposal on its table right now
Bhavik Bajwa
Because despite a good quarters and despite your highest-ever profit, the stock has not been doing that well. So I just wanted some guidance on this.
Atul Tantia
I cannot comment on the stock price that is up to them.
Atharva
Right. Right, right. No, I understand. Thank you, sir. I mean, you’ve answered all the questions and wish you all the best.
Atul Tantia
Thank you.
Operator
Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one. The next question is from the line of Hiten Boricha from Sequent Investments. Please go-ahead.
Hiten Boricha
Yeah. Good evening, sir. Thanks for the opportunity. Sir, my question is on the revision of the guidance. You mentioned largely it is because of the Kumbh Mela. So if you can give the breakup of the order book, like what percentage of our order is in central region or maybe UP specific region, which has impacted our guidance?
Atul Tantia
Out of INR3,300 crores, close to INR1,500 crores is from the region, so almost 45%
Hiten Boricha
From UP particularly, right?
Atul Tantia
Yeah.
Hiten Boricha
Okay, okay. And also you can throw some light on sir, order inflow, which we are targeting in FY ’25, any what kind of tender which is going to come next year? And what is the order inflow target for next year?
Atul Tantia
Like I said, close to INR2,000 crores is the target for next year.
Hiten Boricha
INR2,000 crores of inflow for next year.
Atul Tantia
Correct.
Hiten Boricha
And out of what tender size, sir?
Atul Tantia
So typically it is INR300 crore-plus, there would be one or two large contracts close to 1,000 and balance would be three odd plus.
Hiten Boricha
Understood. Understood, sir. Yeah, that’s all from my side. Thank you.
Operator
The next question is from the line of Atharva from Shiledar. Please go-ahead.
Atharva
Sir, actually, I want to ask you about pledge. So how much pledge is it reduced from the bank
Atul Tantia
Like I said in my earlier remarks from 51% of the total shares to now 34% of the total shares.
Atharva
Okay, okay. And sir, when it will be yield, sir that you said I want to just need going-forward.
Atul Tantia
I can’t hear you.
Atharva
Sir, you said that I just wa I just want to completely finish place in-going forward. So what is the time, sir? Time horizon.
Atul Tantia
So like I said, with the improvement in the ratings, we are in talks with the banks to also reduce it further. I would just like to clarify here that the pledge is only for the working capital of the company and no other borrowings by the promoters. It is in a continuous discussion with the banks to further go down from the current levels?
Atharva
Okay, sir. And sir, final question is, are you on-track — are you on-track to achieve the INR2,000 crore guidance for FY ’28 or FY ’27, sorry.
Atul Tantia
Yeah, we should be close to INR2,000 crores by FY ’27.
Atharva
Thank you.
Atul Tantia
Thank you.
Operator
The next question is from the line of Taha from Tara Capital. Please go-ahead.
Taha Ansari
Hello. Hello. Am I audible?
Atul Tantia
Yeah.
Taha Ansari
Thanks for — thanks for taking our taking my question. The first thing is, with the recent rating upgrade and the repayment of debt, what kind of improvement we can see in FY ’26 PAT? Currently, it is around 7.5% as I can see nine months. So what kind of margin we can see in FY ’26.
Atul Tantia
No, I think 7.5%, 8% is a good number for an EPC company and we expect that to be around 8%, 8.5%, not higher.
Taha Ansari
Okay, 88.5%. Okay, got it. And on the working capital side, are we on-track to achieve — achieve the target of I guess you said around 90 days something, 70 to 90 days.
Atul Tantia
I said, I said 90 days in the last call and I think we are on-track to do that.
Taha Ansari
Thank you.
Atul Tantia
Thank you.
Operator
The next question is from the line of from Shivam from PS. Please go-ahead.
Shivam
Hi, Atul. Can you hear me?
Atul Tantia
Yes, please go-ahead.
Shivam
Yeah, Atul, correct me if I’m wrong, but I mean, this is more sort of a clarification, the first one. When we did the QIP, I think we raised about INR175 crores and about INR125 crores went to debt repayment. And that time the debt levels are about INR190. So I just heard that the current debt levels are at about INR100 crores. So were there any new borrowings up?
Atul Tantia
There were some equipment finance borrowings, but very less. And also we had repaid that much, but temporary some working capital might have been utilized, but that will again — has again come down as on-date. So as the end-of-the quarter, it might be temporary utilized, which is why it was at INR100 crores at that time.
Shivam
Okay, okay, okay. Yeah. And the second question I had was you just mentioned there’s some six, seven large contracts that the company has been bidding for. So can you throw some light on like when you say large, are these like INR1,000 plus crore projects?
Atul Tantia
They are between 750 to 1,100,
Shivam
750 to 1,100. Okay, okay. And on last call, you also mentioned after QYP QIP, you know that the bidding capacity will also go up to INR1,600 crores now on an individual GPT level. So are you also looking at that or have there been any obstacles from the government side, you’re not finding such opportunities. What, what’s how is the outlook?
Atul Tantia
No, we are looking at similar opportunities as on-date also the management is evaluating certain opportunities as and when we are successful in becoming L1 or we will come back to the investors and announce that as well.
Shivam
Okay. Okay. Thank you. That’s all that’s all from my side.
Atul Tantia
Thank you.
Operator
The next question is from the line of Darshil Pandya from Finterest Capital. Please go-ahead.
Darshil Pandya
Hi, sir. Can you just please confirm what is the EBITDA margins for the kind of for railway business and our normal business? The EBITDA margin for both of us is almost similar. So it is 13% odd — 13% odd. And sir, if I just want to confirm, since we are now bidding for bigger projects, so does this come with a better margins, maybe 14% 15% or 16%?
Atul Tantia
No, no, no, no, no, no. This kind of industry, I think that kind of margin is not — is unheard of and I don’t think no one reports that kind of margins.
Darshil Pandya
Okay. And just want to confirm this Ghana facility once it slides, should it do around what, 20% 25% odd percent of margins? I guess we a few quarters ago, we had this discussion.
Atul Tantia
Khana should do about 25% or kind of margin.
Darshil Pandya
Khana facility, right? Got it, got it. Thank you. Thank you so much. All the best.
Atul Tantia
Thank you.
Operator
Participants who wish to ask your question may press star and one at this time. The next question is from the line of Bhavik Bajwa, an Individual Investor. Please go-ahead.
Bhavik Bajwa
Yes, sir. I just wanted to ask you know one more question that currently we are bidding for projects that you achieved, 13% 13.5% EBITDA margins. So is there any plan going-forward to bid for certain complex projects that can give us slightly higher EBITDA margins?
Atul Tantia
Honestly, I think none of our peers or none of the contracts that are in the market, especially with government contracts give you a margin of 14% 15% or beyond. So whether it is complex or not, so I think we are doing steel — we are doing bridges, which has a lot of value addition in terms of engineering skills. That is why we’re able to attract the kind of margins that we do attract. 13% to 14% is a very good number — is a good decent number for this sector.
Bhavik Bajwa
Right. And for a longer-term perspective, I just wanted to understand like we started our business with concrete sleeper and then in early 2000, we started into infra. So is there any plan to maybe venture out into some different segments to diversify the revenue pool, maybe into water EPC something like that?
Atul Tantia
We are looking at certain contrasts like tunneling, etc. But once we get that then only we can announce that we are diversified.
Bhavik Bajwa
Very correct. Okay, sir. Thanks a lot.
Atul Tantia
Thank you.
Operator
The next question is from the line of Shivam. Please go-ahead.
Shivam
Hi, Atul. It’s Shivam again. So I quite agree with you and really impressive really to see that GPT is doing about, 13%, 13.5% and it’s quite commendable nobody else is able to really achieve that. That said, you know like given the political complexities and difficulties that exist in operating in countries like the African countries that we operate in, what’s the management stake there? Like are we still looking at continuing these concrete sliper operations? Are there any plans of divestment
Atul Tantia
So the Africa business gives us a higher EBITDA margin, the of 20% plus. Like I said earlier, Ghana would give about 25%. There is no plan to divest it because it is giving good returns on the investment. And we have been in South Africa for now more than 15 years and we have no plans to exit.
Shivam
Yeah, I ask because the infrastructure business has quite disproportionately grown compared to your concrete sleeper operations. So I mean if you’re looking at continuing your operations in Africa in the concrete sleeper, so are there any plans to move your funds from the profit that you’re making in infrastructure to perhaps expand the operations there some eye like that.
Atul Tantia
So we have done recently, like I said, like I’m sure aware, last year itself, we set a factory in Ghana. So we have used the internal accruals to set-up that factory. There’s no debt on the balance sheet in Khana. So that is something that we’ve already done last year. Obviously, Africa is a very decision-making there is quite slow. So you can’t invest overnight. And you need to find good bankable projects as well. You — otherwise you can get stuck with a lot of debtors and related receivables, which is not desirable.
Shivam
Okay, okay. And would it be — would it be practical for us to assume that you say 7% to 90 to 93 that is currently for infrastructure and concrete to remain same in the near-future or do you expect that to change?
Atul Tantia
Maybe 90% that was a call, call broader number that we do expect going-forward as well.
Shivam
Okay. Okay. Fantastic. Thank you so much.
Atul Tantia
Thank you.
Operator
A reminder to all participants that you may press star and one to ask a question. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one at this time as there are no further questions from the participants, I now hand the conference over to Mr Atul for his closing comments.
Atul Tantia
Thank you. So thank you, everyone for attending the conference call for Q3 and nine months ended, 31 December 2025 for GPT Infraprojects Ltd. I hope we have been able to successfully answer most of your queries. In case you have any other further questions, please do get-in touch with us directly or with IR or IR advisors. Thank you and have a great day.
Operator
On behalf of GPT Intra Projects Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.