GR Infra Q1 Review - Subdued Result Cushioned By Expectations Of Strong Order Inflow: ICICI Securities

ICICI Securities Report

GR Infraprojects Ltd. has reported subdued Q1 FY25 earnings on account of-

1. decline in orderbook and

2. delay in allotment of the appointing date for seven projects.

Revenue declined 12% YoY and Ebitda margin came in at 130% (down 160 basis points YoY). However, rise in other income (Rs 1.1 billion, two times Q1 FY24) aided in a flat quarter in terms of profit. The orderbook saw an accretion of Rs 40 billion.

Order pipeline for FY25 is estimated at Rs 2.3 trillion, of which GR Infra expects to capture Rs 160 billion in incremental orders (bringing total likely order inflow for FY25 to Rs 200 billion).

We expect orderbook to improve in FY25 on higher order inflow from road, transmission and other projects. As a result, we expect revenue to grow by15% in FY26E. We maintain Buy with a revised target price of Rs 1,875 (earlier Rs 1,820).

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