MARC - Marc Technocrats

📊 NSE: MARC 🏢 Consulting Services 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total operating income grew by 29.31% YoY, reaching INR 26.07 Cr in FY24 compared to INR 20.16 Cr in FY23. The growth is driven by the infrastructure consultancy segment, specifically for road and bridge projects.

Geographic Revenue Split

Not disclosed in available documents, though the company operates across India with recent project wins in Bihar (INR 5.25 Cr project).

Profitability Margins

Profitability remains healthy with PBILDT margins at 18.79% in FY24 (up from 18.44% in FY23) and PAT margins at 13.44% in FY24 (up from 13.04% in FY23). The slight improvement is due to better absorption of fixed costs on a higher revenue base.

EBITDA Margin

PBILDT margin stood at 18.79% in FY24, representing a YoY increase of 35 basis points. Core profitability in absolute terms rose 31.72% to INR 4.90 Cr.

Capital Expenditure

Not disclosed in available documents; however, the company maintains a low-debt profile with an overall gearing of 0.05x, suggesting minimal capital-intensive requirements for its consultancy operations.

Credit Rating & Borrowing

Ratings were reaffirmed at CARE B+/Stable and CRISIL B/Stable but subsequently withdrawn in April 2025. Interest coverage ratio deteriorated from 79.37x in FY23 to 13.87x in FY24 due to increased interest costs on low total debt.

⚙️ Operational Drivers

Raw Materials

As a service-based consultancy, primary costs are human capital and technical expertise rather than physical raw materials. Technical staff and marketing teams represent the core operational cost.

Import Sources

Not applicable for engineering consultancy services.

Key Suppliers

Not applicable; the company relies on a team of experienced technical professionals and directors Mr. Hitender Kumar and Mrs. Suman.

Capacity Expansion

Current capacity is project-based. The company recently secured a 48-month contract for the Patna-Arrah-Sasaram Corridor, indicating an expansion of its active project portfolio.

Raw Material Costs

Not applicable; however, employee and administrative costs are the primary drivers, with absolute PBILDT at INR 4.90 Cr against a TOI of INR 26.07 Cr.

Manufacturing Efficiency

Not applicable; operational efficiency is measured by interest coverage (13.87x) and debt coverage (Total Debt/GCA at 0.25x).

Logistics & Distribution

Not applicable; services are delivered on-site at government project locations.

📈 Strategic Growth

Expected Growth Rate

29%

Growth Strategy

Growth is pursued through aggressive bidding for government infrastructure tenders. A recent win includes a INR 5.25 Cr contract from NHAI for independent engineering services in Bihar. The strategy involves a 48-month execution cycle covering development (6 months), construction (24 months), and O&M monitoring (18 months).

Products & Services

Consultancy services including road and bridge construction design, outline design for planning, detailed engineering design, project appraisals, construction supervision, and traffic surveys.

Brand Portfolio

Marc Technocrats Limited (MTL).

New Products/Services

Independent Engineering Services for Greenfield highway projects under the Hybrid Annuity Mode (HAM), expected to contribute significantly to the FY25-FY28 revenue stream.

Market Expansion

Expansion into the Bihar region via the NH-119A corridor project with a 4-year execution timeline.

Market Share & Ranking

Not disclosed; described as a small-scale player in a highly fragmented industry.

🌍 External Factors

Industry Trends

The industry is shifting toward Hybrid Annuity Mode (HAM) projects and Greenfield corridors. MTL is positioning itself by securing Independent Engineering roles in these specific project types to ensure long-term (48-month) revenue visibility.

Competitive Landscape

Fragmented market with competition from local, national, and emerging foreign players in the infrastructure consultancy space.

Competitive Moat

The moat is based on the promoter's decade-long track record and established relationships with government lenders. However, this is challenged by the 'Issuer Not Cooperating' status which may affect future financial flexibility.

Macro Economic Sensitivity

Highly sensitive to government fiscal policy and infrastructure spending; a 10% shift in the national infrastructure budget directly correlates to the volume of available tenders.

Consumer Behavior

Not applicable; demand is driven by government policy rather than individual consumer trends.

Geopolitical Risks

Minimal direct impact, though global economic shifts can influence the entry of foreign competitors into the Indian infrastructure consultancy market.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by NHAI standards and state-specific civil engineering codes. Compliance with ISO 9001:2015 standards is maintained for quality management.

Taxation Policy Impact

Standard corporate tax rates apply; PAT of INR 3.50 Cr on PBT suggests a normal tax trajectory.

Legal Contingencies

Not disclosed in available documents; however, the company has faced 'Issuer Not Cooperating' status from both CARE and CRISIL due to failure to provide requisite information for rating exercises.

⚠️ Risk Analysis

Key Uncertainties

Non-cooperation with credit agencies (CARE/CRISIL) creates information asymmetry for investors. Dependency on government tenders (100% of revenue) poses a high risk if policy shifts occur.