📌 At a Glance
RPP Infra Projects Ltd has reported a modest FY25 with a ₹64.57 Cr PAT, flat compared to last year’s ₹65.52 Cr. But the real story? A fat ₹2,762.89 Cr order book, a ₹764 Cr Sri Lankan gig, and a bunch of one-time write-offs that look like they raided the balance sheet with a bulldozer.
So… profit stable. Revenue up. Margin—meh. And plenty of digging, both in the ground and in the ledgers.
🏗️ About the Company
- Name: RPP Infra Projects Ltd
- Listed on: NSE (RPPINFRA), BSE (533284)
- Incorporated: 1995 (private), listed in 2010
- Core Sectors:
- Infrastructure development
- Residential & commercial buildings
- Water management
- Current Leadership:
- Mr. Arulsundaram – Managing Director
- Mrs. Nithya Arulsundaram – Whole-Time Director / CFO
They aim to be a “global infra leader,” but right now, they’re fighting local battles with Sri Lankan expansion dreams.
📋 FY25 Financials – Did They Build Profits?
| Metric | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Revenue | ₹1,431.55 Cr | ₹1,332.39 Cr | +7.4% |
| Gross Profit | ₹203.33 Cr | ₹191.21 Cr | +6.3% |
| Gross Margin | 14.20% | 14.35% | -15 bps |
| EBITDA | ₹107.08 Cr | ₹115.29 Cr | -7.1% |
| EBITDA Margin | 7.48% | 8.65% | -117 bps |
| PAT | ₹64.57 Cr | ₹65.52 Cr | -1.45% |
| EPS | ₹13.20 | ₹17.31 | -23.7% |
👷 Translation: Revenue was up. Profit held up. But EBITDA took a hit—margin compression alert.
📊 Q4 FY25 vs Q3 FY25 vs Q4 FY24
| Metric | Q4 FY25 | Q3 FY25 | Q4 FY24 |
|---|---|---|---|
| Revenue | ₹407.02 Cr | ₹351.59 Cr | ₹345.88 Cr |
| EBITDA | ₹36.04 Cr | ₹31.59 Cr | ₹15.16 Cr |
| PAT | ₹22.04 Cr | ₹18.13 Cr | ₹12.56 Cr |
⛏️ That Q4 jump was solid. PAT almost doubled YoY and margins recovered. But don’t get too hyped—some of it was a bounce back from earlier quarters hit by bad debt and terminated contracts.
💼 Key Business Events: A Timeline of Trouble (and Opportunity)
- 🔨 CPCL Project Termination: Out of ₹254 Cr, only ₹41 Cr executed. Gross loss = ₹15 Cr.
- 🧾 Bad Debt from NTECL arbitration: ₹7.65 Cr written off. Dispute pending since 2014. Yes, almost as old as your Netflix password.
- 🛠️ Obsolete Site Assets: ₹2.04 Cr written off.
- 🚫 Bank Guarantee Invoked by NTPC: ₹1.79 Cr lost.
- ❌ Retention Receivables: ₹3.16 Cr gone.
- 🔮 Onerous Loss Provisions: ₹1.38 Cr for BHEL and others.
🧮 Total clean-up = A mini demolition of the balance sheet.
💸 Capital & Equity Updates
- 🧾 Share Warrants Converted: ₹38.16 Cr received this year + ₹12.72 Cr last year.
- 🔁 Converted into:
- Equity capital: ₹11.5 Cr
- Premium: ₹39.38 Cr
🏡 Land Purchases:
- ₹44.4 Cr in Kanchipuram before Mar 31, 2025
- ₹44.13 Cr on April 29, 2025
Funded from warrant money + retained profits. So they’re not just building roads—they’re eyeing land banking too.
🏗️ Order Book: Big, Fat & Spread Out
🔄 New Orders in FY25:
| Segment | Value (₹ Cr) |
|---|---|
| Infra | 1,278.53 |
| Buildings | 463.03 |
| Water Management | 136.48 |
| Total | 1,878.04 |
🌍 International Expansion:
- Sri Lanka: ₹764 Cr residential project (“Legend 96”)
- Approval from Sri Lankan Board of Investment
- Bank proposals in process
🧾 L1 Projects (Yet to Be Awarded): ₹543.21 Cr
📦 Total Order Book as on Mar 31, 2025:
| Segment | Value (₹ Cr) |
|---|---|
| Infra | 1,844.31 |
| Buildings | 392.03 |
| Water Management | 526.55 |
| Total | 2,762.89 |
🏞️ State-wise Order Book:
- Tamil Nadu: ₹1,203.76 Cr
- Uttar Pradesh: ₹635.85 Cr
- Maharashtra: ₹601.23 Cr
Still very South-heavy. But the shift toward UP + Maha is visible.
🧾 Balance Sheet Breakdown (Mar 31, 2025)
| Particular | FY25 | FY24 | Reason |
|---|---|---|---|
| Equity | ₹521.13 Cr | ₹417.49 Cr | Share warrants + retained profit |
| Total Assets | ₹933.45 Cr | ₹825.75 Cr | Land, FDs |
| Debt-Equity | 0.07x | 0.10x | Deleveraging |
| Current Ratio | 1.67x | 1.69x | Stable |
| Non-Current Assets | ₹268.76 Cr | ₹158.68 Cr | Land, CapEx |
| Inventories | ₹32.98 Cr | ₹20.86 Cr | Project ramp-up |
💣 Red Flags:
- Bad debts + arbitration losses aren’t done haunting yet.
- EPS drop is real: 17.31 → 13.20 despite flat PAT = dilution pain.
🧮 Auditor & Internal Audit Remarks
- ✅ Statutory Audit: No adverse remarks.
- 🛠️ Internal Audit Observations:
- Weaknesses in inventory, cash, and banking processes.
- TDS and GST compliance gaps.
- Management has initiated SOP overhauls.
👏 At least they’re admitting flaws. Always a good sign in infra, where opacity is the norm.
🧠 EduInvesting Take
Let’s break it down for retail investors:
- Growth is there, but not glamorous. A ₹2,762 Cr order book and ₹543 Cr in the pipeline screams “execution story.”
- Margins are shrinking, but not collapsing. That means they’re bidding smart—not desperate.
- Dilution via warrants is a trade-off they made to raise capital without debt. It’s not a scam move—but yeah, EPS took the bullet.
- Sri Lanka move is bold. Geo-expansion for infra is high-risk, high-reward. Especially in a debt-heavy economy like SL.
Would we call it a multibagger? Nope.
But a gritty midcap infra company, trying to clean house, land more projects, and stay debt-lite?
Sounds like a decent contractor… with ambitions of becoming a conglomerate.
⚠️ Risks & Red Flags
- 🧾 Arbitration ghosts (NTECL, NTPC) are still on the books
- 🏗️ Sri Lanka execution risk — FX + political
- ⚠️ Internal control issues still being resolved
- ❌ CPCL termination impact may stretch beyond FY25
Tags: RPP Infra Projects FY25 results, Infra stock analysis India, EPC company order book, Sri Lanka construction project, RPPINFRA Q4 result, midcap infra stocks, BSE infra, NSE infra stocks
Author: Prashant Marathe
Date: June 7, 2025
Meta Description: RPP Infra Projects reports flat FY25 profit but boasts a ₹2,762 Cr order book and a ₹764 Cr Sri Lanka project. Is this infra midcap ready for re-rating?
