KRIDHANINF - Kridhan Infra

📊 NSE: KRIDHANINF 🏢 Trading 📅 Last Updated: 12/14/2025 9:02

💰 Financial Performance

Revenue Growth by Segment

For FY19, the company targeted India EPC revenue of INR 1,200-1,300 Cr, Singapore Foundation Engineering (FE) at INR 400-500 Cr, and Singapore EPC at INR 150-200 Cr. Proforma revenue for 9M FY19 grew 146% YoY to INR 1,315.1 Cr. However, by FY25, standalone revenue significantly declined to INR 2.57 Cr, reflecting severe operational scaling back.

Geographic Revenue Split

The business is split between India and Singapore. As of Q3 FY19, India EPC (via VNC) accounted for 78% of the proforma order book, while Singapore operations (FE and EPC) each contributed 11%.

Profitability Margins

Net Profit for FY25 was reported at INR 72.31 Cr on a standalone basis, though this appears driven by non-operational adjustments given the low revenue of INR 2.57 Cr. Historically, 9M FY19 proforma PAT (pre-exceptional) was INR 47 Cr, a 37% YoY increase.

EBITDA Margin

EBITDA margin for Q3 FY19 was 8%, a sharp decline from 19% in Q3 FY18 (-57% change). The company had provided a full-year FY19 guidance of 12-13% EBITDA margins, which was pressured by higher expenses which grew 93% YoY in Q3 FY19.

Capital Expenditure

Not explicitly disclosed in absolute INR Cr for future periods, but historical depreciation of INR 29.33 Lakhs in FY25 suggests minimal recent investment in new physical assets.

Credit Rating & Borrowing

The company reported a finance cost of INR 1.74 Cr for FY25. Management noted a 'liquidity mis-match' hurdle over the last few years, indicating constrained access to low-cost borrowing.

⚙️ Operational Drivers

Raw Materials

Steel, cement, and aggregates represent the primary inputs for piling and EPC works, typically accounting for 50-60% of project costs in the infrastructure sector.

Import Sources

Primarily sourced from India for domestic EPC projects and local Singaporean suppliers for KH Foges and Swee Hong operations.

Capacity Expansion

Current capacity is defined by an order book of INR 3,860 Cr (as of Q3 FY19). No specific unit-based expansion (MT/MW) is planned; growth is dependent on order wins like the INR 195.3 Cr Public Utilities Board contract in Singapore.

Raw Material Costs

Raw material availability and price volatility are cited as critical risks. In Q3 FY19, total expenses rose 93% YoY to INR 216.3 Cr, significantly outpacing revenue growth and compressing margins.

Manufacturing Efficiency

India EPC demonstrated high efficiency with a Book to Bill ratio of 3.2x during its peak execution phase in FY19.

📈 Strategic Growth

Expected Growth Rate

146%

Growth Strategy

The strategy involves consolidating the 50.5% stake in Vijay Nirman Company (VNC) to strengthen India EPC, growing the Singapore EPC business through Swee Hong, and executing a bid pipeline of over INR 3,130 Cr.

Products & Services

Piling and foundation engineering, bridge construction, road works, affordable housing projects, and public utility infrastructure.

Brand Portfolio

KH Foges, Swee Hong, Vijay Nirman Company (VNC), Kridhan Infra.

New Products/Services

Expansion into Affordable Housing (26% of order book) and specialized Piling contracts (INR 104.2 Cr win in Singapore).

Market Expansion

Targeting the Singapore Public Utilities Board and Indian national highway projects (Roads & Bridges currently 37% of order book).

Market Share & Ranking

Positioned as a leading bridge and piling specialist in the mid-tier EPC segment in India and Singapore.

Strategic Alliances

Acquisition of a majority stake in VNC and the integration of Swee Hong in Singapore.

🌍 External Factors

Industry Trends

The industry is shifting toward affordable housing and large-scale transport infra. Kridhan is positioned with 37% of its book in Roads & Bridges and 26% in Affordable Housing to capture this trend.

Competitive Landscape

Competes with mid-to-large scale EPC firms in India and specialized piling contractors in the Singaporean construction market.

Competitive Moat

Moat is based on specialized technical expertise in foundation engineering (KH Foges) and a strong 3.2x book-to-bill ratio in India, though this is currently threatened by liquidity constraints.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and interest rate cycles which affect the cost of project financing.

Consumer Behavior

Not applicable for B2B/Government EPC services.

Geopolitical Risks

The Russia-Ukraine war and energy crisis in Europe are cited as factors dampening global growth potential and increasing utility costs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by SEBI Listing Regulations and the Companies Act 2013, with financial statements prepared under Ind AS.

Environmental Compliance

The company maintains a policy for environmentally clean and safe operations, though specific ESG costs are not quantified.

Taxation Policy Impact

Subject to Indian and Singaporean tax regimes; changes in these regimes are listed as a primary operational risk.

Legal Contingencies

The company faces hurdles from liquidity mismatches, though specific court case values were not detailed in the provided financial extracts.

⚠️ Risk Analysis

Key Uncertainties

Liquidity mismatch is the primary risk, potentially leading to project delays and an inability to bid for new work, impacting revenue by over 90% as seen in the FY25 standalone figures.