📌 At a Glance
RBM Infracon’s FY25 headline looks shiny: revenue up to ~₹990 Cr and PAT near ₹120 Cr. Scratch the surface and operating cash is barely ₹25 Cr, debt keeps climbing, and receivable days have doubled. In short: concrete margins, quick‑sand liquidity.
🧾 Financial Reality Check (FY22–FY25)
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | Op Cash Flow (₹ Cr) | Net Cash Flow (₹ Cr) |
|---|---|---|---|---|---|
| FY22 | 580 | 24 | 2.7 | 38 | –12 |
| FY23 | 705 | 35 | 3.9 | 42 | –18 |
| FY24 | 704 | 37 | 4.1 | 19 | –42 |
| FY25* | 987 | 121 | 13.1 | 25 | –66 |
*FY25 numbers derive from the March‑25 consolidated quarter run‑rate shown in the PDF (987 Cr revenue, 121 Cr PAT).
Key take‑aways
- PAT surged 3× vs FY24 – but operating cash barely moved.
- Net cash flow negative ₹66 Cr despite the “profit boom”.
- Receivable days up from 90 to 180+ – someone isn’t paying on time.
🚨 What’s Going On?
- Paper Profits, Dusty Wallet
PAT = ₹121 Cr, but Op CF = ₹25 Cr. Where did the other ₹96 Cr go? Likely stuck in receivables and WIP. - Debt Creep
FY22 debt ≈ ₹110 Cr → FY25 debt ≈ ₹190 Cr. Interest expense up 40 %. ROE adjusted for leverage? Low‑single digits. - Margin Mirage
Reported OPM ≈ 25 %, but after adjusting for capitalised costs, true core margin slides below 15 %. - YOY Tag Tamasha
The PDF brandishes “40 % YoY growth.” Sure – compared to a flat FY24, but absolute revenue is just catching up to industry median. Cherry‑picking at its finest.
🧠 Ratio Wreckage
| Metric | FY22 | FY23 | FY24 | FY25 |
| ROE (%) | 11.5 | 13.2 | 10.4 | 9.1 |
| ROCE (%) | 14.0 | 15.3 | 12.8 | 11.0 |
| Debtor Days | 92 | 110 | 141 | 181 |
| Debt/Equity | 0.7× | 0.8× | 0.9× | 1.0× |
Declining returns, rising leverage – not exactly the highway to shareholder heaven.
🛠️ EduInvesting Roast
- Sporting a ₹121 Cr “profit” but can’t shake loose enough cash to pay cement suppliers on time.
- Marketing slide trumpets “robust 25 % margin” – but depreciation buried half the gross profits.
- Management claims “order book visibility till 2029.” Translation: clients who haven’t paid for 2024 work yet.
- Screener flashes “Almost debt‑free” – reality shows borrowings inching past ₹190 Cr.
- Institutional ownership? 0.0 %. Even the neighbourhood chai‑wala wants equity before a mutual fund does.
🔮 Road Ahead or Dead End?
- 🟢 Government infra push = pipeline of projects.
- 🟠 Funding gap = more debt or equity dilution imminent.
- 🔴 Cash‑conversion cycle worsening. Bad sign in EPC.
- 🤡 If receivables stay north of 6 months, FY26 “profits” will again disappear in smoke.
💀 Verdict
RBM Infracon is pouring concrete with one hand and pouring red ink with the other. Yes, topline is finally inching toward ₹1,000 Cr, but cash discipline is stuck in a pothole. Until receivables shrink and operating cash covers at least half of PAT, this stock is more flyover than multibagger: looks impressive from afar, full of cracks up close.
Author: Prashant Marathe
Date: 6 June 2025
Tags: RBM Infracon, infra roast, cash‑flow trap, debtor days, EPC red flags
