The company has successfully executed specialised structural projects across four Indian states—Punjab, Haryana, Rajasthan, and Uttarakhand—and two Union Territories, Chandigarh and the National Capital Territory (NCT) of Delhi.
Since acquiring the business from Deepak Builders, the current company, Deepak Builders & Engineers, has completed 17 projects. These include the construction of the Jang-E-Azadi Memorial at Kartarpur in Jalandhar, the Karuna Sagar Maharishi Valmiki Tirath Asthaan at Ram Tirath in Amritsar, the Geriatrics Block at AIIMS in New Delhi, and the super speciality block at the Government Medical College in Patiala.
The company’s client base includes major entities such as Northern Railways, Public Work (Roads & Buildings) Departments of Punjab, Haryana, and Uttarakhand, WAPCOS, NPCCL, HSCC, IOCL, Greater Mohali Area Development Authority, Ludhiana Smart City Limited, Punjab Cricket Association, and Punjab Heritage and Tourism Promotion Board.
Deepak Builders & Engineers claims to have made consistent investments in updating its fleet of construction equipment. As of June 30, 2024, the company had a lineup of 398 major equipment and machinery, including concrete mixers, boom pumps, transit mixers, JCBs, rollers, mobile tower cranes, and containers.
The company has recorded a consistent rise in revenue from operations and profit after tax (PAT) over the last few years. Revenue from operations (net) increased from Rs 363.05 crore in FY22 to Rs 433.45 crore in FY23 to Rs 511.40 crore in FY24, while PAT increased from Rs 17.66 crore in FY22 to Rs 21.39 crore in FY23 to Rs 60.41 crore in FY24.
Deepak Builders & Engineers derives a significant portion of its revenue from projects contracted by government, semi-government, and government-controlled entities. Any sudden changes in government policies could lead to the termination or renegotiation of contracts, negatively affecting the company's business and operations.
The company's project portfolio is heavily concentrated on large-scale projects, with 12 ongoing construction & infrastructure projects. These include four hospital and medical college buildings, four railway stations, two road projects, one administrative and institutional building, and one industrial building, with the order book totalling Rs 1,380.38 crore as of the three months ended June 30, 2024. Any delays or issues with these projects could negatively impact the company’s financial stability.
Deepak Builders & Engineers' project portfolio has been concentrated in Punjab, India, which significantly contributes to its revenue. The state contributed Rs 157.71 crore (30.84%), Rs 63.82 crore (14.72%), and Rs 126.72 crore (34.90%) to the revenue from operations in FY24, FY23, and FY22. Any adverse developments in the business environment of the state could adversely affect the company's operations and finances.
A substantial portion of the company’s revenue comes from a limited number of clients. The top 10 clients contributed Rs 472.00 crore (92.30%), Rs 347.34 crore (80.13%), and Rs 299.93 crore (82.61%) to the revenue from operations in FY24, FY23, and FY22. Any loss of these major customers, a failure to retain them, or a decrease in demand could negatively affect the company's revenue generation capabilities.
The company, its promoters, and its directors are involved in certain legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
As of August 31, 2024, the company had an indebtedness of Rs 484.96 crore. Any inability to repay or service these loans can negatively affect the company’s financial standing.