ITD Cementation Reports 92% Increase in Q1 Profit, Exceeds Expectations

ITD Cementation established its operations in India in 1931 as a branch of The Cementation Company Ltd., UK, a member of Trafalgar House Group of London, to carry out extensive grouting and drilling works on the hydraulic structures, which were then growing rapidly. Since then, the company has been diligently working towards building a stronger India and has gained vast expertise in the field of infrastructure construction. In 2004, Italian-Thai Development Public Company Limited of Thailand entered into a share purchase and replica watch sale agreement with The Cementation Company Limited and Skanska AB. Subsequently, the company rebranded as ITD Cementation India Limited and received a new certificate of incorporation on May 26, 2005. With a strong parentage, being one of the largest civil engineering contractors in Southeast Asia has propelled the company’s growth in securing major infrastructure construction projects throughout India.

ITD Cementation Q1 FY25 result:

The engineering and construction company reported a bottom line of Rs 100 crore in the quarter ended June, compared to Rs 52 crore in the same quarter of the previous fiscal, according to its stock exchange notification. The company’s revenue grew by 30% year-on-year to Rs 2,381 crore. Operating income, or earnings before interest, tax, depreciation, and amortization, increased by 36.4% year-over-year to Rs 221 crore, with the EBITDA margin rising to 9.3% from 8.8% in the same quarter of the previous fiscal year. 

Additionally, there has been a notable increase in profit before tax less other income (PBT) of 42.3% when compared to the average PBT of the preceding four quarters.

Over the previous five quarters, there has been a consistent increase in profit after tax (PAT), with the current quarter’s PAT reaching a record high of Rs. 100.19 crore.  The company has also increased profits for its owners; in the last five quarters, earnings per share (EPS) have reached a record high of Rs 5.83.

ITD Cementation has significantly improved its ability to cover interest payments with its operating profit. This increase in the operating profit-to-interest ratio demonstrates the company’s strong financial performance and ability to manage its debt obligations effectively. It also suggests that ITD Cementation is in a better position to handle any potential fluctuations in interest rates or other financial challenges in the future. Overall, this positive trend bodes well for the company’s financial health and stability.

ITD Cementation stock is 13% up intraday:

ITD Cementation is performing strongly in the intraday segment today, with the current share price at Rs. 545.50, marking a 13% increase for the day.

Conclusion: ITD Cementation’s Q1 FY25 results are unexpected, and the company’s stability has significantly improved over the past few quarters. This positive trend is reflected in Q1 FY25, which bodes well for the company’s performance in the next quarter as well.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.