VLINFRA - V.L.Infraproject

📊 NSE: VLINFRA 🏢 Construction 📅 Last Updated: 12/14/2025 14:52

💰 Financial Performance

Revenue Growth by Segment

Revenue grew by 150% YoY, increasing from INR 45.56 Cr in FY23 to INR 113.93 Cr in FY24, primarily driven by a substantial increase in civil infrastructure orders.

Geographic Revenue Split

The company has high geographic concentration, deriving 50-60% of its total revenue from the state of Gujarat.

Profitability Margins

Net Profit Margin (NPM) improved from 4.85% in FY23 to 5.36% in FY24. Profit for the half-year ended September 30, 2025, was INR 4.02 Cr.

EBITDA Margin

EBITDA margin was 9.59% in FY24 (INR 10.94 Cr), compared to 10.51% in FY23 (INR 4.80 Cr). The absolute EBITDA grew by 128% YoY despite the slight margin compression.

Capital Expenditure

Historical capital expenditure is reflected in the increase of total debt from INR 9.09 Cr in FY23 to INR 14.28 Cr in FY24 to fund operations and equipment. Future debt-funded capex is noted as a potential risk factor.

Credit Rating & Borrowing

CRISIL assigned a 'Stable' outlook. Interest coverage ratio was healthy at 5.58x in FY24, up from 3.51x in FY23.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel, cement, and pipes (DI/MS/HDPE) required for water supply projects, with raw material expenses totaling INR 74.69 Cr in FY24.

Import Sources

Not disclosed in available documents; however, operations are primarily concentrated in Gujarat.

Capacity Expansion

The company has an order book of INR 220 Cr as of June 2025, which is 1.93x its FY24 revenue, to be executed over the next 12-24 months.

Raw Material Costs

Raw material costs accounted for 65.5% of total revenue in FY24 (INR 74.69 Cr), up from 58% in FY23 (INR 26.47 Cr).

Manufacturing Efficiency

ROCE improved significantly from 22.72% in FY23 to 34.02% in FY24, indicating higher efficiency in capital deployment.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be achieved through the execution of the INR 220 Cr order book and aggressive bidding for new government tenders in the water supply and civil infrastructure sectors, leveraging the promoter's extensive track record.

Products & Services

Civil infrastructure projects, specifically water supply systems, pipeline laying, and related civil works for government departments.

Brand Portfolio

VLINFRA

Market Expansion

The company is looking to diversify beyond Gujarat to other states to mitigate regional concentration risks, though current non-Gujarat revenue remains low.

Market Share & Ranking

The company is categorized as having a small scale of operations despite its 150% revenue growth.

🌍 External Factors

Industry Trends

The industry is benefiting from the Government’s thrust on infrastructure, particularly water supply, but remains highly competitive and cyclical.

Competitive Landscape

Highly fragmented and competitive with numerous players bidding for government contracts, which restricts operating margins.

Competitive Moat

The moat is built on the promoter's 20-year experience and established relationships with government clients, which are sustainable but subject to competitive bidding pressures.

Macro Economic Sensitivity

Highly sensitive to government infrastructure budgets and the economic health of Gujarat.

Consumer Behavior

Not applicable as the company operates in the B2G (Business to Government) segment.

Geopolitical Risks

Low, as the business is focused on domestic government infrastructure projects.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with government tender norms and civil construction standards. The company is ISO 9001:2015 certified.

Taxation Policy Impact

Total tax expenses for the half-year ended September 30, 2025, were INR 3.05 Cr.

Legal Contingencies

The Secretarial Audit Report for FY25 confirmed compliance with the Companies Act and other applicable laws; no specific high-value pending litigations were detailed.