MEP - MEP Infrast.

📊 NSE: MEP 🏢 Construction 📅 Last Updated: 12/14/2025 9:49

💰 Financial Performance

Revenue Growth by Segment

Consolidated turnover increased by 21.20% to INR 2,815 Cr in FY19 from INR 2,322 Cr in FY18. Segmental sales in 4Q19 were dominated by Toll Collection & O&M at 78% and Construction at 22%.

Geographic Revenue Split

Significant revenue contributions from the Delhi Entry Point (DEP) project at INR 1,091 Cr (up 64% from INR 665 Cr), HRBC, RGSL, and Mumbai Entry Point projects. Operations are primarily concentrated in Maharashtra, Delhi, and Gujarat.

Profitability Margins

PAT margin was 2% in 4Q19, down from 3% in 4Q18. EBIT margin stood at 19% in 4Q19 compared to 20% in 4Q18. Profit before tax (PBT) for 4Q19 was INR 15 Cr.

EBITDA Margin

EBIT for 4Q19 was INR 131.9 Cr, a 16% decrease from INR 157.5 Cr in 4Q18, primarily due to a 50% increase in operating and maintenance expenses driven by higher concession fees.

Capital Expenditure

The company is executing 10 Hybrid Annuity Model (HAM) projects and maintains an outstanding order book of approximately INR 6,500 Cr as of May 2019.

Credit Rating & Borrowing

Long-term and short-term ratings reaffirmed at 'ACUITE D' (Default) as of July 2023. The rating was downgraded from 'ACUITE B+' in April 2022 due to lenders classifying accounts as delinquent and non-standard. Total bank facilities rated are INR 885.00 Cr.

⚙️ Operational Drivers

Raw Materials

Construction materials including bitumen, cement, and steel for EPC contracts, though specific % of total cost is not disclosed.

Import Sources

Sourced primarily from domestic suppliers within India, specifically for projects in Maharashtra, Gujarat, and Delhi.

Capacity Expansion

Current execution includes 10 HAM projects at various stages. The Thane-Vadape project commenced in January 2019, while Ausa-Chakur, Chakur-Loha, and Loha-Warang projects received appointed dates in March 2019.

Raw Material Costs

Materials are provided to contractors in EPC projects, allowing for higher margins (20-25%) compared to back-to-back contracts. O&M expenses rose 50% in FY19 due to higher concession fees.

Logistics & Distribution

Distribution costs are reflected in O&M expenses, which increased 10% YoY in 4Q19 to INR 337.6 Cr.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Strategic shift toward Long-Term (LT) projects, which accounted for 100% of 4Q19 revenue. Growth is targeted through the execution of the INR 6,500 Cr order book and 10 HAM projects.

Products & Services

Toll collection services, Operate Maintain and Transfer (OMT) business, Engineering Procurement and Construction (EPC) contracts, and Hybrid Annuity Model (HAM) road projects.

Brand Portfolio

MEP Infrastructure Developers Limited (MEPIDL).

New Products/Services

Expansion into Hybrid Annuity Model (HAM) projects with six projects awarded in FY2016 and ten active by FY2019.

Market Expansion

Focus on road and highway infrastructure in India, specifically ring roads and state highways in Maharashtra and Gujarat.

Market Share & Ranking

Established player in toll collection and OMT business for roads and highways in India.

Strategic Alliances

Joint ventures with Sanjose for multiple road projects including Nagpur Ring Road and Talaja-Mahuva Road.

🌍 External Factors

Industry Trends

Industry shift toward HAM and OMT models. The company is positioning itself by moving away from short-term contracts to long-term projects (1-16 years).

Competitive Landscape

Operates in a competitive infrastructure sector with EPC and BOT players; however, specific competitor names are not listed.

Competitive Moat

Management experience in the infrastructure sector and a large portfolio of long-term contracts provide a competitive advantage, though currently threatened by insolvency.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and NHAI policy shifts regarding tolling and HAM models.

Consumer Behavior

Traffic shifts to new expressways (EPE/WPE) directly reduce toll revenue at existing points.

⚖️ Regulatory & Governance

Industry Regulations

Subject to NHAI tolling regulations and the Insolvency and Bankruptcy Code (IBC) due to the ongoing CIRP process.

Taxation Policy Impact

Tax credit of INR 2.1 Cr was recorded in 4Q19 compared to a tax expense of INR 13.7 Cr in 4Q18.

Legal Contingencies

The company is under Corporate Insolvency Resolution Process (CIRP) as of April 2024. Auditors noted material uncertainty regarding the company's ability to continue as a going concern due to eroded net worth in 21 subsidiaries and 7 JVs.

⚠️ Risk Analysis

Key Uncertainties

Material uncertainty exists regarding the 'Going Concern' status as net worth is fully eroded for the majority of 21 subsidiaries and 7 jointly controlled entities as of March 31, 2023.