Ganesh Infraworld IPO

Ganesh Infraworld has served as a contractor for numerous small and mid-sized clients across various engineering and civil construction projects, including Magnum Ventures Limited, Raikela Iron Ore Mines, JD Cables Private Limited, Celica Motocorp Private Limited, Jain International Power Limited, and Nirmala Developers, among others.

The company began its operations in West Bengal and has since expanded to several states, including Rajasthan, Uttar Pradesh, Maharashtra, Odisha, Haryana, Jharkhand, Bihar, Jammu & Kashmir, Andhra Pradesh, and Chhattisgarh.

As of August 31, 2024, the company is actively working on 41 projects across 13 states, with a total project value of approximately Rs 574.85 crore, spanning various infrastructure segments.

The company has seen a consistent increase in revenue from operations and profit after tax (PAT) over the past few years. Revenue from operations increased from Rs 80.24 crore in FY22 to Rs 133.49 crore in FY23 to Rs 290.34 crore in FY24, while PAT increased from Rs 1.89 crore in FY22 to Rs 5.21 crore in FY23 to Rs 15.54 crore in FY24.

Despite having a geographically diverse presence, Ganesh Infraworld’s projects have historically been concentrated in West Bengal. The state contributed Rs 60.84 crore (28.88%) in 5 months ended August 31, 2024 and Rs 116.70 crore (40.19%), Rs 73.54 crore (55.09%), and Rs 35.25 crore (43.93%) to the company's revenue from operations in FY24, FY23, and FY22, respectively. Any adverse changes in the business environment in the region could negatively impact the company’s financial condition and operations.

A significant portion of the company’s new orders comes from relationships with large engineering and construction companies, both past and present. Repeat customers accounted for Rs 185.10 crore (87.87%) in 5 months period ended August 31, 2024 and Rs 170.26 crore (58.64%), Rs 54.92 crore (41.14%), and Rs 36.66 crore (45.69%) of the total revenue from operations in FY24, FY23, and FY22, respectively. First-time customers contributed Rs 25.55 crore (12.13%) in 5 months period ended August 31, 2024 and Rs 120.08 crore (41.36%), Rs 78.57 crore (58.86%), and Rs 43.58 crore (54.31%) in FY24, FY23 and FY22 respectively. Failure to maintain strong relationships with existing clients or establish new ones could adversely affect the company’s operations and profitability.

Ganesh Infraworld generates a large portion of its revenue from a limited number of clients. The top 10 clients contributed Rs 173.35 crore (82.29%) in 5 months period ended August 31, 2024 and Rs 188.54 crore (64.94%), Rs 67.10 crore (50.27%), and Rs 45.61 crore (56.84%) to the company’s revenue from operations in FY24, FY23, and FY22, respectively. Any loss of any significant clients or a reduction in business from them could adversely impact the company’s business, financial performance, and growth prospects.

The company relies on renting process-critical equipment, which is mobilised at the start of each project. This increases fixed and operational costs. If adequate cash flows are not generated, it could negatively impact operations.

The company depends on a limited number of suppliers and contractors for raw materials and manpower. Without long-term supply agreements, delays or disruptions from these suppliers or contractors could materially affect operations and profitability.

As of August 31, 2024, Ganesh Infraworld’s total borrowings, both secured and unsecured, amounted to Rs 12.92 crore. Any inability to repay or service these loans can adversely affect the company’s financial position.