Vishnu Prakash R Punglia Limited (VPRPL), a prominent engineering, contracting, and designing company, has announced a significant move by its promoters to strengthen the company's financial position. In a recent development, the promoters have sold 3.38% of their shareholding in the open market, with the proceeds earmarked for an interest-free loan to the company.

Promoter Sale and Company Support

The sale, conducted by key promoters Vishnu Prakash Punglia, Kamal Kishor Punglia, Sanjay Kumar Punglia, and Ajay Punglia, was executed through open market transactions. This strategic decision aligns with the company's goal to enhance its liquidity and support ongoing operational activities.

Financial Implications

The proceeds from the share sale will be infused into the company as an interest-free loan. This move is expected to:

• Strengthen VPRPL's liquidity position
• Support operational and strategic initiatives
• Enhance the company's cash flow

Management's Perspective

Manohar Lal Punglia, Managing Director of Vishnu Prakash R Punglia Limited, commented on the development:

"This step reflects the promoters' continued commitment to the long-term growth, financial stability, and value creation for all stakeholders. Despite the reduction in promoter holding, the promoters remain fully invested in the Company's vision and continue to hold a significant stake, reaffirming their confidence in the business and its future prospects."

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, demonstrating its commitment to transparency and regulatory adherence.

Future Outlook

VPRPL remains focused on delivering sustainable performance and maintaining transparent communication with its shareholders and financial partners. The company's management views this move as a strategic step towards ensuring robust financial health and supporting future growth initiatives.

As Vishnu Prakash R Punglia Limited continues to navigate the dynamic business landscape, this infusion of interest-free capital is expected to provide the necessary financial flexibility to pursue its operational and strategic objectives effectively.

Vishnu Prakash R Punglia Limited (VPRPL), an ISO 9001:2015 certified integrated engineering, procurement, and construction (EPC) company, has released its unaudited financial results for the first quarter, showcasing a mixed performance amid a strong order book position.

Revenue Growth and Profitability

VPRPL reported a 7.7% year-on-year increase in revenue from operations, reaching INR 2,764.00 crore for Q1. However, the company experienced a decline in profitability metrics:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased by 5.1% to INR 319.00 crore, with EBITDA margin contracting by 155 basis points to 11.54%.
• Net profit saw a significant drop of 52.7% to INR 70.00 crore, with PAT (Profit After Tax) margin declining by 324 basis points to 2.53%.
• Diluted Earnings Per Share (EPS) stood at INR 0.56, down 52.5% compared to the same quarter last year.

Segment-wise Performance

The company's revenue for Q1 was distributed across its key business segments:

Strong Order Book Position

Despite the challenges in profitability, VPRPL maintained a robust order book of over INR 51,468.00 crore as of June 30, providing revenue visibility for the next 34-36 months. The order book is well-diversified across various infrastructure projects:

Operational Highlights

• Project Execution: The company achieved an on-time delivery rate of over 90% despite industry-wide challenges.
• Geographical Expansion: VPRPL expanded its footprint across multiple states, with a growing presence in high-growth regions.
• Business Development: The company submitted or has under evaluation tenders worth over INR 30,000.00 crore, focusing on roads, bridges, urban infrastructure, and renewable-linked construction projects.

Future Outlook

Vishnu Prakash R Punglia appears well-positioned for sustained growth, leveraging its strong order book to expand into new geographies and higher-margin segments. The company expects its healthy pipeline of upcoming bids to translate into order inflows in the near term, reinforcing business momentum and long-term expansion prospects.

Investor Information

As of June 30, VPRPL's stock closed at INR 168.10 per share, with a market capitalization of INR 20,946.42 crore. The company's shareholding pattern showed promoter holding at 67.81%, while public shareholders held 27.99% of the equity.

Vishnu Prakash R Punglia Limited continues to navigate the challenges in the infrastructure sector, balancing revenue growth with profitability pressures. The company's diverse order book and strategic focus on key government initiatives like the Jal Jeevan Mission and Amrut scheme may provide a foundation for future growth, despite the current headwinds in profit margins.