RBM Infra – a less discussed SME

Q1 FY25 earnings conference call held on August 30, 2024.

1. Q1 FY25 Financial Performance:

   • The company achieved total revenue of INR 38.86 crore, reflecting a 98.17% year-over-year (YoY) growth.
   • EBITDA was INR 4.79 crore, representing a massive 237.05% YoY increase, with the EBITDA margin improving to 12.31%.
   • Profit After Tax (PAT) grew by 248.86%, reaching INR 3.29 crore, with PAT margins expanding to 8.46%.

2. Future Growth Projections:

   • The management expects CAGR in revenue of 57-65% from FY24 to FY26. The EBITDA margin is expected to be in the range of 13-15%.
   • The company’s top-line guidance for FY25 is around INR 400 crore, with a PAT of INR 40 crore.
   • They have already clocked over 85 crores topline in Q2FY24 as on date of this Con-call and expect to cross 100 by the end of the quarter.
   • Key drivers of growth include strategic expansions into sectors like oil and gas exploration, solar energy, and green hydrogen production.

3. New Projects and Expansion:

   • RBM Infracon currently has 16 ongoing projects with a work order value of INR 1,384 crore.
   • They are working with major clients such as Reliance, Adani, Nayara Energy, ReNew Energy, and L&T.
   • They have significant plans to expand into solar and green hydrogen production by the end of 2025, aligning with India’s energy transition goals.
   • The Epitome project, valued at INR 957 crore, is progressing with expected invoicing of INR 60 crore in Q2 FY25.

4. Challenges:

   • Delays in some projects due to heavy rainfall in Gujarat have caused slight extensions in project timelines.
   • However, the management is confident in meeting targets, with no significant penalties or setbacks anticipated.