| Extensive experience of the promoters, long track record of operations
Incorporated in 1983 by Mr. K.A. Menon, EHTPL is currently managed by the second generation of the family, Mr. Mahesh Menon and Mr. Manoj Menon. The promoters have an industry experience of more than twenty-five years. Over its vintage, EHTPL has forged long standing relationships with reputed clients and suppliers. It has been associated with reputed clientele like Cummins India Limited, Indian Oil Corporation Limited (IOCL),Larsen & Toubro Limited, Tata Projects Ltd for more than two decades. Acuité believes that EHTPL will continue to benefit from the extensive experience of its promoters ,long track record of its operations and established market presence.
Stable operating performance with Improvement in Margins:
EHTPL reported a marginal revenue decline to Rs.108.05 crore in FY25 from Rs.110.69 crore in FY24 due to slight moderation in demand for radiators and oil coolers; however, performance improved with Rs.108 crore achieved in 10M FY26 (against Rs.96.47 crore in 10M FY25), reflecting moderate growth momentum. The company has an outstanding order book of Rs.136 crore as of Jan’26, anchored by a major order from Konkan LNG Ltd. of Rs.96.43 crore, though concentration risk remains high at 71%; nevertheless, its longstanding customer relationships provide stability. EHTPL is also expanding its export presence with supplies to Abu Dhabi National Oil Company (ADNOC) and Kuwait Oil Company (KOC)and widening its presence in sustainability-linked segments such as hydrogen generation and hydrogen mobility, carbon capture, syngas, and biogas, supported by recent supplies to NTPC Leh and a carbon-capture application in the Netherlands. These factors, along with YTD performance, are expected to support improvement in operating performance over the medium term. Despite the slight revenue decline, operating margins rose sharply to 12.60% in FY25 from 6.19% in FY24, driven by lower raw material costs, higher-margin contracts, and stronger internal cost controls, while PAT margins improved to 7.14% in FY 25 from 1.87% in FY 24 on account of lower finance costs and higher interest income. Acuite believes that the profitability is expected to remain broadly stable at FY25 levels; however, sustaining the improved margins will remain a key monitorable.
Comfortable Financial Risk Profile:
The Financial profile of the Company is marked by moderate net worth, low gearing and comfortable debt protection metrices. The net worth of the Company increased to Rs. 42.23 crore in FY 25 from Rs.34.51 crore in FY 24 driven by accretion to reserves. Total borrowing stood at Rs.23.93 crore in FY 25 as compared to Rs. 25.17 crore in FY 24 resulting in their improvement in gearing stood below unity at 0.57 times in FY 25 as against 0.73 times in FY 24. Debt protection metrics stood comfortable with ICR and DSCR stood at 4.79 times and 2.40 times in FY 2025. TOL/TNW and Debt/EBITDA stood at 1.63 and 1.44 times respectively in FY 2025. Acuite believes that financial risk profile will be comfortable in the medium term backed by absence of significant debt funded capex plan.
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| Intensive Working Capital Management with improvement in FY25 towards year end:
The working capital management remained intensive, with GCA at 138 days in FY25 reduced from 185 days in FY24, primarily due to a sharp decline in debtor days at year end to 65 days in FY25 from 104 days in FY24, as collections are milestone-based and a majority of orders were completed during the year, supported by faster realizations. Inventory days also improved marginally to 70 days in FY25 from 75 days in FY24, driven by lower WIP levels of Rs.10.12 crore in FY25 compared to Rs.12.11 crore in FY24. Further, creditor days decreased to 89 days in FY25 from 107 days in FY24, with a significant portion of payables backed by LCs averaging 90 days. Acuité believes that GCA’s Gross Current Assets (GCA) are expected to remain in the range of 140–150 days over the medium term. This is primarily driven by the company’s milestone-based billing structure, under which receivables are realized only upon completion of specific project stages.
Customer Concentration Risk; mitigated by their established position in the industry:
The Company enjoys an established and long-standing customer base, having nurtured relationships for over a decade with reputed industry players such as Tata Projects, Indian Oil Corporation, Cummins India Ltd., Larsen & Toubro Ltd., and Toyo Engineering India Pvt. Ltd. Nearly 95% of its FY25 revenue was contributed by the top five customers, indicating high customer concentration; however, this risk is partially mitigated by the Company’s established and recurring order flow from these established clients.
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