💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 24.16% YoY to INR 321 Crore in FY25 from INR 258.54 Crore in FY24. Segment-specific growth percentages are not disclosed, but revenue is derived from EPC projects in Roads, Metros, Buildings, and Irrigation.

Geographic Revenue Split

Not disclosed in available documents, though the company operates across different countries and has active projects in Surat (Gujarat) and Bhubaneswar (Odisha).

Profitability Margins

Gross and operating margins are negative; PBILDT margin was -65.44% in FY24 (INR -169.19 Cr on INR 258.54 Cr revenue). Net margin was -29.96% in FY24, improving from -70.01% in FY23.

EBITDA Margin

EBITDA margin was -65.44% in FY24, compared to -70.11% in FY23. Core profitability remains negative due to the inability to bid for new projects and high overheads relative to a shrinking order book.

Capital Expenditure

Historical and planned Capex is not disclosed; the company is currently focused on selling surplus materials from foreclosed projects to minimize losses.

Credit Rating & Borrowing

Credit rating is 'CARE D' (Default) with 'Issuer Not Cooperating' status. Borrowing costs are not applicable as the company has not serviced debt obligations since September 2018 under an NCLAT moratorium.

⚙️ Operational Drivers

Raw Materials

Steel, cement, bitumen, and aggregates are the primary raw materials. Specific percentage of total cost for each is not disclosed.

Capacity Expansion

Not applicable for an EPC service company. The company is currently unable to expand its order book due to a negative net worth of approximately INR -3,184.79 Crore.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company is liquidating surplus materials at completed or foreclosed sites to mitigate deterioration and theft risks.

Manufacturing Efficiency

Not applicable for EPC services; operational focus is on completing the existing order book and financial closure of projects.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth depends entirely on the successful implementation of a comprehensive resolution plan by the newly constituted Board. This plan aims to restore net worth, enable the company to meet bank guarantee requirements, and resume bidding for new EPC projects in Power, Oil & Gas, and Metros.

Products & Services

EPC (Engineering, Procurement, and Construction) services for Roads, Buildings, Industrial Structures, Irrigation Canals, Metros, and Power projects.

Brand Portfolio

IL&FS Engineering and Construction Company Limited (IECCL).

New Products/Services

No new products; the company recently secured two subcontracting arrangements for Surat Metro (Gujarat Metro Rail Corp) and Bhubaneswar Metro (Delhi Metro Rail Corp).

Market Expansion

Currently no expansion plans; the company is in a transitional phase of business realignment and debt resolution.

Market Share & Ranking

Not disclosed; the company is currently sidelined in the industry due to its 'Red Entity' status.

Strategic Alliances

Subcontracting arrangements with major contractors for Metro Rail works in Surat and Bhubaneswar.

🌍 External Factors

Industry Trends

The infrastructure sector is growing, but IECCL is unable to capitalize on this due to its 'Red Entity' status, which signifies an inability to service debt and operational liabilities.

Competitive Landscape

Competes with other major Indian EPC firms, but is currently uncompetitive due to the lack of bank guarantee facilities.

Competitive Moat

The company's moat is its established track record in high-quality EPC projects, but this advantage is currently neutralized by financial distress and negative brand perception.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and the legal resolution of the IL&FS group's liabilities.

Consumer Behavior

Not applicable for B2B/B2G infrastructure services.

Geopolitical Risks

The company has international operations, but specific trade barrier impacts are not detailed.

⚖️ Regulatory & Governance

Industry Regulations

Subject to construction safety standards, pollution norms for project sites, and labor laws. Operations are heavily impacted by the NCLAT moratorium and IL&FS resolution framework.

Legal Contingencies

Ongoing investigations by the Serious Fraud Investigation Office (SFIO) and Enforcement Directorate (ED) against the parent company (IL&FS) and its subsidiaries, including IECCL. IL&FS group has an exposure of INR 2,047.07 Crore in IECCL.

⚠️ Risk Analysis

Key Uncertainties

Success of the resolution plan (100% impact on survival), outcome of SFIO/ED investigations, and ability to exit 'Red Entity' status to resume bidding.

Geographic Concentration Risk

High concentration in India, specifically in regions with ongoing metro and road projects like Gujarat and Odisha.

Third Party Dependencies

Critical dependency on banks for guarantee facilities and on the IL&FS resolution framework for liquidity.

Technology Obsolescence Risk

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

Credit & Counterparty Risk

Receivables are primarily from government and quasi-government bodies (Metro corporations), which generally have high credit quality but may involve settlement delays.