💰 Financial Performance

Revenue Growth by Segment

The company operates in a single infrastructure segment which saw a significant decline of 76.6% from INR 233.6 Cr in FY18 to INR 54.55 Cr in FY21. FY22 revenue stood at INR 55.98 Cr, representing a marginal recovery of 2.6% YoY.

Geographic Revenue Split

Revenue is generated across India with operations concentrated in Madhya Pradesh (Head Office in Indore), Maharashtra (Nagpur), Orissa, Goa, and Rajasthan. Specific % split per region is not disclosed.

Profitability Margins

Net Profit Margin (NPM) declined from 3.9% in FY18 to 0.92% in FY22. Operating Profit Margin (OPM) was 13.88% in FY22, down from 16.53% in FY21, reflecting a 16% decrease in operating efficiency.

EBITDA Margin

Operating Profit Margin (OPM) stood at 13.88% in FY22, compared to 12.52% in FY20, showing a slight recovery in core operational profitability despite a 76% drop in total revenue since FY18.

Credit Rating & Borrowing

The company is rated 'CRISIL D (Issuer Not Cooperating)', indicating a state of default. Borrowing costs are high as the company failed to service debt obligations on its INR 130 Cr bank facilities, including a 30 Cr Cash Credit and 100 Cr Bank Guarantee.

⚙️ Operational Drivers

Raw Materials

Key raw materials include cement, steel, bitumen, and aggregates required for the construction of roads, bridges, and canals. Specific % of total cost for each is not disclosed.

Manufacturing Efficiency

Capacity utilization is not applicable as a service-based infra company, but operational efficiency is low as evidenced by the interest coverage ratio dropping from 4.15x in FY18 to 1.45x in FY19.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company previously pursued a diversification strategy across roads, bridges, and irrigation works. However, growth is currently stalled due to the 'CRISIL D' rating and non-cooperation with credit agencies, which prevents the issuance of new bank guarantees (INR 100 Cr facility) necessary for bidding on new projects.

Products & Services

Construction services for commercial and institutional buildings, roads, bridges, canals, and irrigation works.

Brand Portfolio

CMM Infraprojects Limited (CMMIL).

Market Expansion

The company expanded from Madhya Pradesh into Maharashtra, Orissa, Goa, and Rajasthan, though current financial distress limits further expansion.

🌍 External Factors

Industry Trends

The Indian infrastructure industry is growing, but shifting toward larger, more financially stable players. CMMIL's positioning is weak due to its 'Issuer Not Cooperating' status, which lacks a forward-looking component for investors.

Competitive Landscape

Competes with other mid-sized infrastructure firms in the roads, bridges, and irrigation segments across central and western India.

Competitive Moat

The company lacks a sustainable moat. Its previous competitive advantage in diversified infrastructure has been eroded by financial instability and a 76% decline in revenue over four years.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and interest rate cycles. The drop in interest coverage to 1.45x in FY19 made the company vulnerable to even minor macro-economic shifts.

Consumer Behavior

Not applicable as the primary clients are government and institutional entities.

Geopolitical Risks

Minimal direct geopolitical risk as operations are domestic, but sensitive to national policy changes regarding irrigation and road construction.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to construction safety standards, environmental clearances for irrigation/canal works, and state-specific labor laws in MP, Maharashtra, and Rajasthan.

Legal Contingencies

The company has documented delays in servicing debt obligations, leading to a 'CRISIL D' rating. Specific values of other pending court cases are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Information Adequacy Risk is the primary uncertainty; the company has not provided financial performance or strategic intent data to CRISIL since 2020, leading to a 100% lack of forward-looking credit visibility.

Geographic Concentration Risk

Operations are concentrated in five Indian states, with the head office in Madhya Pradesh, making it sensitive to the regional infrastructure budgets of those specific state governments.

Third Party Dependencies

High dependency on banking partners for the INR 100 Cr Bank Guarantee facility, which is currently restricted due to default status.

Technology Obsolescence Risk

Low risk of direct tech obsolescence, but high risk of operational obsolescence if it cannot adopt modern construction technologies due to lack of capital.

Credit & Counterparty Risk

Extremely poor credit quality as evidenced by the 'CRISIL D' rating and the withdrawal of ratings in August 2022 following non-cooperation.