NACDAC Infrastructure Limited (NSE: NACDAC) Q4 2025 Earnings Call dated Jun. 04, 2025
Corporate Participants:
Hemant Sharma — Chairman & Managing Director
Analysts:
Unidentified Participant
Noel Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the H2 and FY25 earnings conference call of NACDAQ Infrastructure Limited hosted by Equibridge X Advisors. As a reminder, earnings. 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 assistance during the conference call, please signal an operator by pressing then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jiga Shah from McQuibridge X Advisors. Thank you. And over to you ma’ am.
Unidentified Participant
Thank you and good afternoon everyone. Welcome to the X2 and FY25 earnings call of Magnat Infrastructure Limited from the management team we have with us today Mr. Hemant Sharma, Chairman and MD and Mr. Ashish Shaksaksht. Before we begin I would like to mention a brief disclaimer. This conference call may include certain forward looking statements which are based on the current views and expectations of the company. A detailed disclaimer is available in the investor presentation that has been uploaded on the stock exchange. With that I now hand over the call to Mr. Hemant Sharma for his opening remarks.
Hemant Sharma — Chairman & Managing Director
Hello. Thank you. Hi. Good afternoon everyone. Myself Hemant Sharma from Nanddeb. So to start with this earning call, first I’d like to give a brief introduction from a company. Maybe the name of the company. Infrastructure limited. It deals in the infrastructure development like buildings, bridges, residential buildings, hospitals etc. Our company is in operation since 2017. This was the year then we took our first contract for building project. And since then we are working regularly. Currently we have around 118 curve of auto book. And last year we closed our revenue on 48.57 cr. And right now we have 11 different projects that are undergoing majorly. These projects are from the government organizations.
Majorly we work for the Indian Railways. To be specific in Northern Railways and then with Uttarakhand Pejalnigam. Then organizations we have worked with is Bharat Electronics Limited in government sector. And recently we have taken a project from NBCC India Ltd. That’s also a government enterprise. Apart from this we work with the private sector and public clients also. Like we have worked for gmr, Apollo Group. Even we have worked with Jubilant in past times. And there is Tosha International and fcs. These are the among few for which we are working. They also worked with last year. LNT also. So all these projects are mainly for the building and renovation and development. And for the future aspect we are looking to enter into the roads and highway segment as well. In this or from India. Definitely. And as the revenue and earning is to be. The revenue has increased by 33.84% from last year. EBITDA has also increased by 31.93%. The bottom line PAT has also increased by 30.97% this year. We have closed a PAT at 4.15 cr approximately. So for the forward looking statement, we are targeting 35 to 40% of revenue growth in next year and we’ll be growing at this pace. Minimum. We can achieve a better result from this also. But this is the minimum that we are targeting. We can. If we. If everything is. We can easily reach to 50% at least. Otherwise this is the media that we are targeting 35, 40% for the next years. So this would be all from the company.
Unidentified Participant
Thank you. I would like to ask the chorus to take over.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. 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 Abhishek, an individual investor. Please go ahead.
Unidentified Participant
Hello. Good afternoon. Hello. Given the like 104% increase in net worth and 38 to 39% growth in PET, what are the company’s capital allocation priorities for FY26? Will it focus on reinvestment or dividends or something?
Hemant Sharma
No, it is for the reinvestment in the working capital.
Unidentified Participant
Okay. Reinvestment in the working capital. Right. And the company reported a strong order book. Okay. What is the expected timeline for execution?
Hemant Sharma
So the average timeline for a project in this government surplus approximately 18 months. So you can just break down in 18 months. So 118 would be around. Say if you divide by 18, it will become around 65 to 70 crore for a year. And not only this, we have other also projects that is under evaluation. There are four to five tenders that we have already bid with the government. Those under evaluations. And these auto book is apart from the private sector. Because the private sector works that we compute like. Say they are the companies like L&D, GMR, Apollo, whom we are say registered vendors. So the work which we get from them, the dose are for the 2, 2 months, 3 months, 4 months for say 3 crore, 5 crore, 6 crore short project. We also complete those projects within a year.
Unidentified Participant
So those works are apart from this. Okay. With a targeted growth rate of 30% for FY26. Right. What are the key drivers expected to continue like to this new geographic and public sector project?
Hemant Sharma
See, geographically we are targeting a new state, Haryana and Madhya Pradesh. We are getting ourselves registered in those states to bid for the tenders. And for this say to achieve this 30% minimum. It is the minimum. Then we are targeting for say 50%. But this will. This is the what that that is will be achieved in any scenario with these. Save it within with the same order book. Only on a very side note that we did not receive. Yeah, we are not going to receive any further orders. Still we are able to target that growth rate in the next coming year.
Unidentified Participant
Okay. And can you elaborate more on margins across different project segments? And are margins expected to remain stable or improve with this new contract
Hemant Sharma
For the next year? The margins may improve with a percent or 2%, not more than that. It will be say around between 9 to 11 or 9 to 10.5. The pet. I’m talking about the volume. But it will gradually increase when we will be able to bid a project, say a single project of 100 crores. But that it will take time for at least couple of years. Then the margins will definitely be good. Okay. Because obviously because the overhead costs will get reduced.
Unidentified Participant
Okay, got it. Okay. Okay. That’s all from my side. Thanks a lot and all the best.
Hemant Sharma
Thank you.
Operator
Thank you. Ladies and gentlemen. If you wish to ask a question, you may press star N1. The next question is from. The line of Noel Shah from JSR Investments. Please go ahead.
Noel Shah
Yeah, thank you. Thank you.
Hemant Sharma
Yes. Yes you are. Good afternoon.
Noel Shah
So my question is regarding the execution efficiency. So what’s your current average execution cycle for projection? Have you taken any specific steps to reduce that delay or any cost overruns?
Hemant Sharma
Yes, see we work closely on the target. We make small targets. Let’s say we are getting a project of 18 months. We cut down the project of 18 months into 16 months at the initial stage. So step by step we track our progress within our company, within people and even the. There are departments of government who are very strict on timeline. Like Indian Railways is very strict. They don’t allow you to surpass the timeline. And even more than Indian Railways that we have recently come in contact with the organization named NBCC that is even more aggressive towards the series timeline. We have just taken over a project from nbcc. It is a construction of eight story building for the judges of the uttarakhandharadun district. So we are developing a group housing for those judicial officers and magistrates and district judges. So it is, it is a tender force is like 18 months. So do we have gotten a timeline chart has been made for the 16 months that we have signed and given to the this NBCC
Noel Shah
Focusing on the timeline. Very, very strong. Strictly on that.
Hemant Sharma
Yes, yes.
Noel Shah
So my second question is on the trade receivables. Your trade receivables and invented means both increased significantly. So how are you managing that working gap and the collections given means? We have a good order book size of more than 100 crores.
Hemant Sharma
Yeah, the working to manage the working capital was the reason that we had gone for the IPO last December. So we got our funds in January. So it was not very difficult to manage since then. And it’s still because the payments are not stuck anywhere. So we can say that once the payment is. So once the bill is made and presented to either private client or say government link, our payments get done by say 25 days, 30 days maximum. It is a maximum period that we receive a payment plan.
Noel Shah
Okay, okay. Any steps that you have taken to reduce it means as an organized construction in the construction industry, as the order book grows, so the need for funds also grows. So you are taking any actions to reduce that working capital days cycle.
Hemant Sharma
I guess this is the minimum that we can expect from the government. Days. 25 days is the minimum the government will take any. So we have no control over it.
Noel Shah
Okay. Got it. Got it. Yeah. And thank you, sir. And all the best. All the best.
Hemant Sharma
Thank you. Thank you. Thank you.
Operator
Thank you. 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. Participants who wish to ask a question may press star and one. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one sa. Ladies and gentlemen, if you wish to ask a question, you may press star N1. A reminder to all participants that you may press star and one to ask a question. Our next question is from the line of Noel Shah from JSR Investments.
Noel Shah
Please go ahead. There are two more questions, actually. So your top five, top five and top ten customers still receive. A large part of the revenue. Is there any steps that you have taken new financial that we will be able to see new customer line. New customers.
Hemant Sharma
Yes, yes. Yes definitely. So when we are talking in the current year that we are in FY1 basic in top five customers there will be addition of two names so one for sure NBC that has. We have started a project with them in this end of March only. And the other one is. And the other one is shift stack warehousing. These are the both two big projects that we undertake that we are. We have to finish in this financial year only till March. Till next month we’ll be finishing. So yes. Two more customers have been added to the top five and then. And moreover we did. There are a couple of tenders with Bharat Electronics Limited that we have bidded for say 30. 30 crores and 20 crores.
Noel Shah
Pardon. Hello. Yes. Hello. Hello.
Hemant Sharma
Yes. Yes. Yes. So we have few tenders there with the under the evaluation with Bharat Electronics limited that from among which we’ll definitely get one or two contracts from them. So definitely will also add within the top five clients as well.
Noel Shah
Okay. And regarding the joint for to build for a large I have bonding any.
Hemant Sharma
No no not for now we are not looking for any JV right now we are just focusing on this stand alone works only.
Noel Shah
Okay. Okay. So and. And what’s the. You have outlined a strategy too that you are investing in any in equipment and machinery. So could you quantify the supply capex for the rest for.
Hemant Sharma
For the machinery last year also in the last financial year purchase few machines for the concrete plants pumps disease like those. And for this this year also we are planning to buy a few machines like JCBS excavators and one more concrete plant and pump also. So these are the few machines that we are keen on purchasing more to increase the profit margins
Noel Shah
Any ballpark amount that you can mention.
Hemant Sharma
Yeah. It’s maximum once a year.
Noel Shah
Okay. One. Yes. Yes. Thank you. Thank you sir.
Hemant Sharma
Thank you. Thank you.
Operator
Thank you. A reminder to all participants that you may press star and one to ask a question. Participants. If you wish to ask a question to the management, you may press Star and one sa. Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Chika Shah for closing comments.
Unidentified Participant
Thank you. On behalf of Magdaq Infrastructure Ltd. I sincerely thank all of our investors and analysts for taking the time to join us on today’s earnings call. Your trust, interest and continued support mean a great deal to us. We look forward to growing stronger together and keeping you well informed on our journey ahead. Thank you once again for being a valued part of our story. Thank you.
Operator
Thank you. On behalf of Equipreachx Advisors. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.