Raja Bahadur Int - Raja Bahadur Int
Financial Performance
Revenue Growth by Segment
The company operates in a single segment, Construction and Real Estate Development, which generated an operational income of INR 27.75 Cr in FY 2024-25, representing a 30.7% increase from INR 21.23 Cr in the previous year.
Geographic Revenue Split
The company's operations are primarily concentrated in the Pune real estate market, which is identified as a key growth driver due to infrastructural advancements and economic expansion.
Profitability Margins
Operating Profit Margin improved by 18.62% to 0.66% in FY 2024-25. However, the Net Profit Margin declined by 158% to -0.03%, resulting in a net loss of INR 0.93 Cr compared to a profit of INR 1.18 Cr in the previous year.
EBITDA Margin
The Operating Profit Margin stands at 0.66%, showing a YoY improvement of 18.62% despite the overall net loss.
Capital Expenditure
While specific INR Cr figures for planned CAPEX are not disclosed, the company is actively expanding its footprint in the commercial office and retail segments in Pune.
Credit Rating & Borrowing
The Debt-Equity Ratio increased by 51% to 18.72 in FY 2024-25, indicating a significant increase in leverage. The Interest Coverage Ratio is 1.03, reflecting a marginal improvement of 18.99% YoY.
Operational Drivers
Raw Materials
Manual labor (the sector is the 2nd largest employer), construction raw materials (steel, cement, and other input costs), and utilities such as electricity and water.
Import Sources
Not explicitly disclosed, but sourcing is primarily domestic within Maharashtra to support Pune-based projects.
Key Suppliers
Not disclosed in the available documents; however, the company engages established and reputed contractors for project execution.
Capacity Expansion
The company is focused on expanding its commercial real estate portfolio, specifically in the Office and Retail segments in Pune, to meet growing demand from domestic and international businesses.
Raw Material Costs
Input costs remain elevated, impacting margins; the company manages this through meticulous planning and cautious procurement strategies.
Manufacturing Efficiency
Not applicable as the company is in the real estate sector; however, project execution efficiency is tied to labor availability and regulatory clearances.
Logistics & Distribution
Not disclosed as a percentage of revenue.
Strategic Growth
Expected Growth Rate
6.5%
Growth Strategy
The company aims to achieve growth by focusing on the high-demand commercial real estate sector in Pune, specifically targeting the Office and Retail segments. This strategy leverages Pune's infrastructural advancements and the rising GDP per capita in India.
Products & Services
Commercial office spaces and retail property developments.
Brand Portfolio
PITTIE
New Products/Services
New commercial and retail developments in Pune are expected to be the primary contributors to future revenue growth.
Market Expansion
Targeted expansion is focused on the Pune real estate market, capitalizing on its position as a growing economic hub.
Market Share & Ranking
Not disclosed.
Strategic Alliances
The company has no Joint Ventures or Associates; it operates through its 100% owned subsidiary, Raja Bahadurs Realty Limited.
External Factors
Industry Trends
The industry is seeing a shift toward commercial real estate demand from international businesses; it remains the second-largest employment provider in India.
Competitive Landscape
The sector is highly regulated and competitive, with performance influenced by the speed of policy reforms and interest rate cycles.
Competitive Moat
The company's moat is built on its established PITTIE brand and its specialized focus on the Pune micro-market, which is seeing strong demand for retail and office segments.
Macro Economic Sensitivity
Highly sensitive to India's GDP growth (projected at 6.5%) and urbanization trends which drive demand for commercial spaces.
Consumer Behavior
Shift toward higher demand for modern office and retail spaces driven by larger disposable incomes and growing urbanization.
Geopolitical Risks
While global headwinds are mentioned, the company's focus is domestic, primarily facing risks from local regulatory frameworks and interest rate volatility.
Regulatory & Governance
Industry Regulations
Operations are governed by the Real Estate (Registration and Development) Act (RERA) 2016, Maharashtra Regional and Town Planning Act 1966, and the Maharashtra Ownership of Flats Act 1963.
Environmental Compliance
The company must comply with The Environment (Protection) Act, 1986, for its construction projects.
Taxation Policy Impact
The company's net loss in FY 2024-25 was primarily due to an increase in deferred tax expenses compared to the previous year.
Legal Contingencies
Project execution is subject to the absence of contingencies such as litigation; however, specific pending case values are not disclosed.
Risk Analysis
Key Uncertainties
Unanticipated delays in project approvals and regulatory framework changes could negatively influence performance by disrupting completion schedules.
Geographic Concentration Risk
100% of the company's focus is on the Pune real estate market, creating high geographic concentration risk.
Third Party Dependencies
Significant dependency on manual labor and external contractors for project execution.
Technology Obsolescence Risk
Low risk, though the company adopts measures for energy conservation and technology absorption where applicable.
Credit & Counterparty Risk
The Debtors turnover ratio of 2.84 indicates moderate efficiency in credit collection.