💰 Financial Performance

Revenue Growth by Segment

Total operating income grew 4.37% YoY to INR 302.02 Cr in FY25. Segmental split (legacy) includes Residential (66.8%), Commercial & Industrial (12.4%), Special Projects (11.7%), and Health & Leisure (8.9%).

Geographic Revenue Split

Operations are majorly concentrated in Maharashtra, particularly Navi Mumbai. The company is diversifying into Karnataka, Gujarat, Goa, and Himachal Pradesh to mitigate localized risks.

Profitability Margins

Gross profitability improved with EBITDA margins rising from 9.68% to 12.01% in FY25. Net Profit Ratio stood at 4.02% in FY25, up from 3.85% in FY24, driven by better realization and stable costs.

EBITDA Margin

EBITDA margin was 12.01% in FY25, a significant YoY improvement from 9.68% due to steady execution of high-margin orders and effective cost management.

Capital Expenditure

Historical PPE stood at INR 63.9 Cr. Planned CAPEX is limited to maintain a healthy financial risk profile, though the company incorporated a new Joint Venture LLP, Generic Bootes, in FY25.

Credit Rating & Borrowing

Crisil assigned a 'Negative' outlook due to stretched liquidity, while Infomerics and CareEdge maintain 'Stable' outlooks. Interest coverage ratio is comfortable at 3.36x in FY25.

⚙️ Operational Drivers

Raw Materials

Key raw materials include cement, steel, and labor, which are subject to price volatility and represent a significant portion of construction costs.

Import Sources

Raw materials are primarily sourced domestically within India, specifically from regions like Maharashtra and Gujarat where projects are located.

Key Suppliers

Suppliers include various domestic cement and steel manufacturers; specific company names are not disclosed in the provided documents.

Capacity Expansion

Current execution capacity is reflected in the INR 1,247.84 Cr order book (4x revenue). Expansion is achieved through geographic diversification and the new Generic Bootes JV.

Raw Material Costs

Raw material costs are partially mitigated through price escalation clauses in customer contracts, protecting the 12.01% EBITDA margin from sudden price spikes.

Manufacturing Efficiency

ROCE improved significantly by 43.95% YoY, reaching 10.24% in FY25 from 7.12% in FY24, indicating improved capital efficiency.

Logistics & Distribution

Distribution costs are managed as part of project execution expenses; specific percentages of revenue are not disclosed.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be achieved by executing the INR 1,247.84 Cr order book over the next 2-3 years, expanding into niche segments like healthcare, and leveraging the INR 11.21 lakh Cr government infrastructure outlay.

Products & Services

Civil construction services for residential complexes, industrial buildings, hospitals, and automotive showrooms for brands like BMW, Toyota, and Maruti Suzuki.

Brand Portfolio

GENCON, Generic Engineering Construction and Projects Limited.

New Products/Services

Incorporation of Generic Bootes JV LLP in FY25 to explore new infrastructure and construction project opportunities.

Market Expansion

Expanding beyond the core Maharashtra market into Karnataka, Gujarat, Goa, and Himachal Pradesh to reduce geographical concentration risk.

Market Share & Ranking

Highest market share of contracting business in Navi Mumbai, having delivered more than 300 industrial buildings in that region.

Strategic Alliances

Strategic Joint Venture LLP named Generic Bootes was incorporated during the financial year 2024-25.

🌍 External Factors

Industry Trends

The industry is benefiting from a 2.4x GDP multiplier effect from infrastructure spending. Trends show a shift toward specialized niche segments like health and leisure.

Competitive Landscape

Intense competition from both large organized EPC players and small unorganized local contractors restricts pricing flexibility.

Competitive Moat

Moat is sustained by a 30-year track record, 50+ years of promoter experience, and a dominant reputation in the Navi Mumbai industrial construction market.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending; the Union Budget 2025-26 allocation of INR 11.21 lakh Cr (3.1% of GDP) is a major tailwind.

Consumer Behavior

Increased demand for high-quality healthcare and industrial infrastructure is driving the company's project mix.

Geopolitical Risks

Geopolitical tensions could disrupt supply chains for raw materials; localized socio-political upheavals in Maharashtra could hamper performance.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with Section 92(3) and 134(3)(a) of the Companies Act, 2013, and SEBI Listing Obligations (LODR) Regulations 2015.

Environmental Compliance

The company maintains a CSR policy; legacy documents show a CSR expenditure of INR 3.53 Cr to comply with regulations.

Taxation Policy Impact

Effective tax rate is approximately 24.8%, with INR 4.8 Cr tax paid on a standalone PBT of INR 19.3 Cr in FY25.

Legal Contingencies

No material or serious observations reported by auditors; no reported instances of fraud by officers or employees during the review period.

⚠️ Risk Analysis

Key Uncertainties

Working capital intensity is a major risk, with Gross Current Assets (GCA) exceeding 400 days in some reports and receivables overdue for >180 days exceeding INR 50 Cr.

Geographic Concentration Risk

Significant concentration in Maharashtra (Navi Mumbai), exposing the company to localized policy changes and construction slowdowns in the region.

Third Party Dependencies

High dependency on top 5 clients for >50% of the order book and on private real estate players for 68% of total orders.

Technology Obsolescence Risk

The company relies on its 'technical expertise' as a competitive advantage; failure to update construction technologies could lead to project delays.

Credit & Counterparty Risk

Exposure to private real estate players (68%) and government entities (32%). Provisions of INR 2.18 Cr were previously made for expected credit losses.