💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 3.05% YoY to INR 46.91 Cr in FY25 from INR 45.52 Cr in FY24. The primary segments include Civil Construction and Real Estate, with the construction segment driving the majority of the INR 46.91 Cr top line.

Geographic Revenue Split

100% of revenue is derived from North India, specifically projects in Punjab (Moonak, Derabassi), Haryana, and Chandigarh.

Profitability Margins

PAT margins were recorded at 23.79% in FY20. For FY25, the company reported a significant Total Comprehensive Income of INR 112.86 Cr, largely attributed to the valuation of its share in associate companies and quoted investments.

EBITDA Margin

PBILDT margin stood at 35.66% in FY20, reflecting strong core profitability before the impact of COVID-19 and subsequent project cycles.

Capital Expenditure

Capital Work In Progress (CWIP) increased by 2.02% to INR 4.04 Cr in FY25 from INR 3.96 Cr in FY24, primarily related to the development of the bio-gas project and residential infrastructure.

Credit Rating & Borrowing

The company was previously rated CARE BB-; Stable / CARE A4 (Issuer Not Cooperating) before the ratings were withdrawn in November 2020. Financial costs increased by 11.71% YoY to INR 5.81 Cr in FY25.

⚙️ Operational Drivers

Raw Materials

Steel, cement, bricks, and construction aggregates represent approximately 72.2% of total operational costs (Cost of Sales of INR 33.89 Cr).

Import Sources

Raw materials are primarily sourced from domestic suppliers within India, specifically from industrial hubs in Punjab, Himachal Pradesh, and Haryana.

Key Suppliers

Not specifically disclosed in the documents, though the company procures from major domestic steel and cement manufacturers.

Capacity Expansion

The company is currently executing the SSL Highway Towers residential project and a bio-gas plant at Moonak, Punjab. Phase I of the commercial property in trade has a cost base of INR 80.26 Cr.

Raw Material Costs

Cost of materials/sales stood at INR 33.89 Cr in FY25, a decrease of 6.17% from INR 36.12 Cr in FY24, representing 72.2% of revenue from operations.

Manufacturing Efficiency

Efficiency is measured by project execution timelines; the company successfully reduced its cost of sales by 6.17% YoY despite a 3.05% increase in revenue.

Logistics & Distribution

Distribution and selling expenses, including advertisement and brokerage, totaled INR 1.54 Cr in FY25, remaining flat YoY.

📈 Strategic Growth

Expected Growth Rate

10-12%

Growth Strategy

Growth will be driven by the completion and sale of the SSL Highway Towers residential project, the operationalization of the Moonak bio-gas plant, and the proposed amalgamation with Steel Strips Limited (SSL) to consolidate group assets.

Products & Services

Civil construction services (hospitals, flyovers, malls), residential apartments (SSL Highway Towers), and bio-gas energy production.

Brand Portfolio

SSL Highway Towers, Steel Strips Group.

New Products/Services

The bio-gas plant at Moonak is expected to contribute a new revenue stream upon completion, diversifying the company away from pure-play construction.

Market Expansion

Expansion is focused on the Punjab and Haryana infrastructure corridors, targeting turnkey EPC projects in the power and healthcare sectors.

Market Share & Ranking

The company is a mid-sized player in the highly fragmented Indian construction and EPC sector.

Strategic Alliances

The company operates closely with associate concerns including Steel Strips Wheels Limited and Indian Acrylics Limited, holding investments worth INR 353.87 Cr in these entities.

🌍 External Factors

Industry Trends

The construction industry is evolving toward sustainable infrastructure and renewable energy; SAB's move into bio-gas aligns with this 15-20% industry-wide growth trend in green energy.

Competitive Landscape

Intense competition from numerous small and mid-sized EPC firms and regional real estate developers in the North India market.

Competitive Moat

Moat is based on a 40-year track record and the established reputation of the Steel Strips Group, which provides better access to capital and project tenders.

Macro Economic Sensitivity

Highly sensitive to interest rate changes and inflation in construction materials; interest costs account for 12.4% of revenue.

Consumer Behavior

Increasing demand for organized multi-storeyed housing in suburban Chandigarh and a shift toward green energy solutions.

Geopolitical Risks

Minimal direct impact as operations are domestic, though global commodity price fluctuations affect local steel and fuel prices.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by RERA for real estate projects and safety/quality standards for EPC infrastructure works.

Environmental Compliance

The bio-gas project must comply with Punjab Pollution Control Board norms and waste management regulations.

Taxation Policy Impact

The effective tax provision for FY25 was INR 33.00 lakhs, a 78.4% increase from INR 18.50 lakhs in FY24.

Legal Contingencies

The company has a provision for bad and doubtful debts amounting to INR 92.10 lakhs as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Project execution risk for the bio-gas plant and the cyclical nature of the real estate market could impact cash flow stability by 15-20%.

Geographic Concentration Risk

100% of revenue is concentrated in the North India region, making the company vulnerable to regional economic or regulatory shifts.

Third Party Dependencies

High dependency on government approvals for infrastructure projects and regulatory clearances for the bio-gas and real estate segments.

Technology Obsolescence Risk

Low risk in construction, but the bio-gas segment requires maintaining up-to-date conversion technology to ensure yield efficiency.

Credit & Counterparty Risk

Exposure to government departments for EPC receivables and individual home buyers for real estate, mitigated by a INR 0.92 Cr bad debt provision.