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Key Points

Ravi Infrabuild, an infrastructure company preparing for its IPO, has reported a nuanced financial performance in FY24. The company experienced a 10.46% drop in net profit while simultaneously achieving a 32.68% revenue increase. Rising expenses, particularly in material costs and employee benefits, contributed to the profit decline. The firm remains optimistic about its upcoming public offering and continued growth in the infrastructure sector.

Key Points: Ravi Infrabuild IPO Prep Nets 10% Profit Dip Despite Revenue Surge

  • Firm targets Rs 1,100 crore IPO with no offer-for-sale component
  • Revenue rises 32.68% despite net profit drop
  • Expenses increase 31.99% year-on-year
  • Promoters hold 84% pre-issue equity
2 min read

IPO-bound Ravi Infrabuild clocks over 10 pc net profit dip in FY24 as expenses rise

Infrastructure firm Ravi Infrabuild sees net profit decline to Rs 88.19 crore in FY24 amid rising expenses and upcoming IPO launch.

"Our revenue growth continues despite challenging cost dynamics - Ravi Infrabuild Financial Report"

Mumbai, May 9

Infrastructure firm Ravi Infrabuild Projects Limited, which is preparing to launch an initial public offering (IPO) to raise up to Rs 1,100 crore, has reported a decline in net profit for the financial year 2023-24 (FY24), even as its income and revenue saw growth.

According to financial data available on the company’s official website, the firm’s net profit fell by 10.46 per cent, dropping from Rs 98.49 crore in FY23 to Rs 88.19 crore in FY24.

The dip in profitability came despite a 32.68 per cent increase in revenue from operations, which rose to Rs 1,285.16 crore in FY24 from Rs 968.58 crore the previous financial year.

The company's total income also climbed by 33.01 per cent year-on-year (YoY), reaching Rs 1,303.89 crore.

However, this growth in income was accompanied by a sharp rise in total expenses, which increased by 31.99 per cent to Rs 1,129.16 crore in FY24, up from Rs 855.53 crore in FY23.

Among the major cost drivers were a 53.49 per cent rise in employee benefits expense, which grew to Rs 62.79 crore, and a 70.21 per cent increase in depreciation and amortisation, which stood at Rs 31.25 crore in FY24.

Additionally, the cost of materials consumed jumped by 47.21 per cent, rising from Rs 318.19 crore in FY23 to Rs 468.38 crore in FY24.

The Udaipur-based company, known for its work in highways, ropeways and railway infrastructure, has filed its draft red herring prospectus with market regulator SEBI to raise Rs 1,100 crore through a fresh issue IPO.

There will be no offer-for-sale (OFS) component, and the proceeds will be used to purchase equipment, invest in subsidiaries, repay debt, and for general corporate purposes.

The company is led by promoters Narayan Singh Rao, Dilip Singh Rao, and Ravi Singh Rao, who together hold 84 per cent of the pre-issue equity share capital.

Ravi Infrabuild has executed projects for the National Highways Authority of India (NHAI), the Ministry of Road Transport and Highways, and several state governments.

- IANS

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Reader Comments

A
Amit K.
Rising revenue but falling profits is a red flag 🚩. The 70% jump in depreciation costs suggests they might have over-invested in equipment. Investors should be cautious before jumping into this IPO. Better to wait for 2-3 quarters post-listing performance.
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Priya M.
Infrastructure sector is booming with govt's focus on roads and railways. Yes expenses are up but revenue growth of 32% is impressive! This could be a good long-term bet if they manage costs better. #MakeInIndia
R
Rajesh T.
Promoters holding 84% is concerning - too much control in few hands. They should have diluted more through OFS. Retail investors may get squeezed later. SEBI should scrutinize such closely-held IPOs more carefully.
S
Sunita G.
Worked with NHAI and state governments - that's a strong credential! But material costs up 47% shows inflation pressure. Hope they've accounted for future raw material price hikes in their projections. Infrastructure companies often face these challenges.
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Vikram S.
Debt repayment from IPO proceeds is good but ₹1100cr seems ambitious valuation. Their P/E must be sky-high with falling profits. Better options available in infra sector like KNR Constructions or NCC with better financials.
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Neha P.
Interesting to see a Udaipur-based company making waves! 🎉 But employee costs up 53% - are they retaining talent or is there inefficiency? Would like to see their employee productivity metrics before investing. Infrastructure needs skilled workers but costs must be controlled.

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