💰 Financial Performance

Revenue Growth by Segment

Standalone revenue for the fiscal year ended March 31, 2023, was INR 1,017.21 Cr, representing a significant decline of 67.21% compared to INR 3,102.34 Cr in FY22. Revenue from operations in Q2FY22 was INR 865.5 Cr, which was an 8% YoY growth from INR 798.2 Cr in Q2FY21.

Geographic Revenue Split

The company operates primarily in India, with 100% of disclosed revenue originating from domestic infrastructure projects such as the Purvanchal Expressway in Eastern Uttar Pradesh.

Profitability Margins

The company reported a massive standalone loss before tax of INR 977.26 Cr in FY23, compared to a loss of INR 788.37 Cr in FY22. Profitability is severely impacted by high finance costs and exceptional items, including a provision for bad debts/expected credit loss of INR 338.00 Cr in FY23.

EBITDA Margin

EBITDA margin was -10.75% in Q2FY22, a sharp decline from 13.07% in Q2FY21. Core profitability has been eroded by project terminations and liquidity constraints.

Capital Expenditure

Depreciation and amortization expenses were INR 57.07 Cr in FY23, down 25.17% from INR 76.27 Cr in FY22, indicating a reduction in active asset utilization or potential asset disposals.

Credit Rating & Borrowing

Borrowing costs are extremely high, with standalone finance costs of INR 326.51 Cr in FY23, representing approximately 32.1% of total revenue. The company is facing 'liquidity tightness' and requires capital infusion to sustain operations.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include steel, cement, and bitumen, which are essential for road and expressway construction. Exact percentage of total cost for each is not disclosed in available documents.

Capacity Expansion

The company is focused on executing its existing order book, such as the Purvanchal Expressway Package 1, which had a contract value of INR 1,483 Cr with a balance work of INR 203 Cr as of November 2021.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company aims to mitigate liquidity tightness through capital infusion. Growth is contingent on resolving financial stress to resume execution of large-scale EPC projects and managing its investment in Gayatri Highways Limited, which has a total exposure of approximately INR 438.43 Cr.

Products & Services

Engineering, Procurement, and Construction (EPC) services for infrastructure projects including roads, expressways, highways, and irrigation works.

Brand Portfolio

Gayatri Projects Limited (GPL).

Strategic Alliances

The company operates through various Joint Ventures and has a significant associate company, Gayatri Highways Limited.

🌍 External Factors

Industry Trends

The Indian infrastructure sector is shifting toward large-scale expressway and highway projects, but the industry is capital-intensive and sensitive to credit availability.

Competitive Landscape

Competes with other major Indian EPC and infrastructure firms for government tenders.

Competitive Moat

The company's moat lies in its track record of executing large-scale, complex EPC projects like the Purvanchal Expressway, though this is currently threatened by financial instability.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and interest rate fluctuations due to high debt levels.

Consumer Behavior

Not applicable as the business is primarily Business-to-Government (B2G).

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to construction standards, pollution norms, and labor laws applicable to the infrastructure sector.

Taxation Policy Impact

The company reported a tax benefit/expense of INR -0.7 Cr in H1FY22.

Legal Contingencies

The company stated there were no cases filed by stakeholders regarding unfair trade practices or anti-competitive behavior pending as of the end of the financial year. However, auditors highlighted revenue recognition and contract asset measurement as a Key Audit Matter.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the company's ability to continue as a going concern, given that consolidated current liabilities (INR 4,930.46 Cr) significantly exceed total assets (INR 3,578.50 Cr).

Geographic Concentration Risk

High concentration in India, specifically in states like Uttar Pradesh and Telangana.

Third Party Dependencies

Dependency on subcontractors and material suppliers is high, though specific names were not disclosed.

Technology Obsolescence Risk

Low risk for core civil construction, but digital transformation in project management is ongoing.

Credit & Counterparty Risk

Significant risk related to the realization of contract assets and unbilled revenue, which required a provision of INR 338.00 Cr in FY23.