| Experienced promotors and established track record of operations
CIPL was incorporated by Mr. Brahmaji Gadde, Mrs. Padmasri Gannamani in the year 2010. Mr. Bala Subrahmanyam has joined as a director from October 2023 onwards. Promotors of the company have more than a decade experience in the civil construction industry. The extensive experience of the promotors has helped the company establish long term relationships with its customers and suppliers. CIPL’s management is supported by a team of professionals with adequate experience in executing civil contract works. Currently, the company is engaged in both residential construction projects and government civil contracts. Government projects received by the company are mostly on sub-contracting basis.
Improved operating performance
CIPL’s operating performance improved in FY2025, supported by strong execution momentum and timely billing under its EPC contracts. The company’s operating income increased by ~22% YoY, rising to Rs.261.20 Cr. in FY2025 from Rs.213.64 Cr. in FY2024, primarily driven by the completion of key project milestones and faster billing cycles. Further, in 11MFY26 the company reported a revenue of ~Rs 245.54 Cr. Healthy outstanding order book and continued adherence to milestone-based execution gives revenue visibility over the medium term. The EBITDA margin remained stable at 11.19% in FY2025, broadly aligning with the 10–12% margin profile. PAT margin stood improved at 4.52% in FY2025 against 3.79% in FY2024, supported by better absorption of fixed costs.
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| Moderate financial risk profile
The net worth increased to Rs.53.12 Cr. in FY2025 from Rs.41.31 Cr. in FY2024, driven solely by profit accretion into reserves. The gearing stood moderate at 1.70x in FY2025 compared to 1.68x in FY2024. However, debt protection metrics stood comfortable with interest coverage ratio at 3.82x and debt service coverage ratio of 1.38x in FY2025. The Debt/EBITDA ratio further moderated to 3.01x in FY2025 (from 2.84x in FY2024). Going ahead, the financial risk profile of the company is expected to improve on account of prepayment of the debt in FY2026 and no further planned debt funded capex over the medium term.
Intensive working capital operations
CIPL’s working capital operations are intensive in nature marked by gross current asset days of 311 days in FY2025 against 299 days in FY2024. Debtor days reduced significantly to 37 days in FY2025 from 71 days in FY2024, reflecting faster payment cycles and better billing discipline. However, inventory levels (which include unbilled revenue) remained elevated at Rs.175.92 Cr. in FY2025 versus Rs.107.97 Cr. in FY2024 due to the milestone-based nature of contracts and ongoing execution of multiple medium-sized projects. Correspondingly, inventory days rose to 277 days from 208 days, highlighting the build-up of work-in-progress. Creditor days stood at 132 days in FY2025 against 159 days in FY2024. The average bank limit utilization for fund based limits stood high at ~97.89% for the past 06 months ending Jan 26.
Exposure to intense competition and tender-based operations
The infrastructure is a fragmented industry with a presence of large players pan India where subcontracting & project specific partnerships for technical/financial reasons are common. The revenue and profitability for tendering based operations depends entirely on the ability to win tenders wherein entities face intense competition, thus requiring them to bid aggressively to procure contracts and restrict the operating margin to a moderate level. Moreover, susceptibility of raw material pricing again keeps profitability margins vulnerable and shall remain key rating sensitivity.
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