Hello Sir, good to hear your informative sight towards several business. Can you share your thoughts on BLS E-services.
Recent (not so recent) listing, M-Cap – 1900 crores.
My thoughts:

• Company has given some consistent profits
• Decent ratios.
• Company’s management looks solid, promising and experienced
• Not much of risk (like any form of dependency, competition)
• Can’t able to find any wow factor, kind of monotonous. Growth aspect is somewhat missing.
• Can be shadowed with parent company BLS International.

Interarch Building Products Ltd is a leading player in the pre-engineered steel construction industry in India. This company specializes in providing complete turnkey solutions, including design, engineering, manufacturing, installation, and erection of pre-engineered steel buildings (PEBs).

Operations: Interarch handles PEB Contracts on a turnkey basis and provides PEB Sales, which include metal ceilings and roofing systems, steel structures, and framing systems.

Manufacturing Capacity: They have 5 manufacturing facilities across India, with a total installed capacity of 161,000 Metric Tons Per Annum (MTPA). A 6th facility is planned in Gujarat, and they also operate three dedicated design centers.

Technological Capabilities: The company uses advanced design software, including Staad Pro, MBS, FrameCad, Tekla, and AutoCAD to facilitate design and engineering for its projects.

• The company achieved a successful IPO listing in August 2024, raising ₹600 crores. Of this:
• ₹200 crores were raised as fresh issues for capex investments.
• The rest was for offer for sale.
• Strategic Expansion: Interarch commissioned Phase 1 of their 5th manufacturing plant in Andhra Pradesh, adding 20,000 MTPA to the capacity. Phase 2 is under construction, and once completed, the plant will add a further 40,000 MTPA.
• The newly commissioned plant provides a revenue visibility of ₹150 crores per annum and is expected to contribute significantly to the company’s future growth.

Industry and Global Market Outlook:

• Global PEB Market: The market is estimated to grow from USD 19-21 billion in 2023 to USD 32-34 billion by 2028, driven by investments in public infrastructure, growing urbanization, and demand for green buildings. Southeast Asia and North America are the key growth regions.
• Indian Construction Sector: The sector is valued at approximately INR 46-48 trillion and is projected to grow to INR 74-76 trillion by FY29, driven by urbanization, infrastructure development, renewable energy projects, and government initiatives.

Indian PEB Market Outlook

• The PEB industry in India is currently valued at around ₹330-340 billion and is expected to grow at a CAGR of 10-14% over FY24-29. The organized sector is gaining a stronger foothold over unorganized players due to reliable track records, quality products, and efficient supply chain capabilities.
• Sectoral Demand:
  • Industrial/Manufacturing continues to be the largest segment.
  • The infrastructure segment is growing rapidly due to the adoption of PEBs in warehouses, cold storage, data centers, and power plants.

Advantages of PEB over Traditional Construction

• Cost & Time Efficiency: PEB structures are 40-50% faster to construct compared to traditional RCC (Reinforced Cement Concrete) constructions.

Interarch Building Products Ltd Q1 FY25 Earnings Call

• Revenue Growth: The company reported a 3% YoY growth in revenue, reaching ₹303 crores in Q1 FY25.
• EBITDA stood at ₹27.1 crores, with an EBITDA margin of 8.9%, slightly improved from 8.6% in Q1 FY24.
• PAT (Profit After Tax) was ₹20.3 crores, a 4.6% YoY growth.

Order Book & Order Wins:

• New orders worth ₹634 crores were secured in the year up to September 2024, contributing to an overall order book of ₹1,350 crores as of September 14, 2024.

Order Mix & Revenue Visibility:

• 62% of revenue came from the industrial segment, 36% from infrastructure, and the remaining from other sectors.

Future Growth & Profitability Guidance:

• The management expects 10-15% revenue growth in FY25 and 15-20% in FY26, aiming to double its revenue in the next 3-4 years.
• EBITDA Margins are guided to remain in the range of 9-10%, with potential improvements as the company scales.

This i saw in goa, GOT edition, it cost around 7000 and the regular one is 3300.

30% of their balance sheet is stuck in trade receivables which means to expand further on they would need to raise external capital to expand also their working capital gap is about half of the current assets stuck as trade receivables.