Arisinfra Solutions Limited has reported robust financial results for the first quarter, marking significant milestones in its growth journey. The company's performance reflects its strong market position and efficient operational model in the construction materials and services sector.

Financial Highlights

• Total income for Q1 stood at Rs. 216.00 crores, up 11% year-on-year
• EBITDA reached Rs. 19.50 crores, with a margin of 9.2% - the highest ever for the company
• Net profit after tax (PAT) was Rs. 5.11 crores, after absorbing Rs. 2.50 crores of IPO-related expenses
• Adjusted PAT (excluding IPO expenses) was Rs. 8.00 crores, compared to Rs. 6.50 crores in Q1 last year

Operational Achievements

• Achieved debt-free status with net debt at zero
• Reduced working capital cycle to 97 days from 120 days a year ago
• Secured new contracts worth Rs. 400.00-450.00 crores
• Expanded BuildMex subsidiary capacity to 2.5-3 lakh metric tons monthly

Strategic Developments

Arisinfra Solutions has made significant strides in its operational strategy:

1. Supply-Demand Engine: The company has built an organized network with long-term visibility on both supply and demand sides, securing capacities through strategic deposits and serving institutional customers with predictable repeat demand.

2. Working Capital Management: Initiatives include securing supply chain financing facilities and scaling invoice discounting with institutional customers, aiming to reduce the working capital cycle further to 85-90 days.

3. Asset-Light Model: The company is focusing on scaling through strategic partnerships and contract manufacturing, preserving flexibility and reducing risk.

Management Commentary

Srinivasan Gopalan, CEO of ArisInfra Solutions, stated, "We are pleased to report a solid start for the financial year. Our Q1 results reflect the strength of our integrated supply-service model, which is gaining strong industry response in a traditionally fragmented sector."

Ronak Morbia, Chairman and Managing Director, added, "We are targeting around 40% growth, focusing not just on revenue but on sustaining EBITDA margins, PAT margins, and keeping the working capital cycle under check."

Future Outlook

The management expects:

• 30-40% revenue growth going forward
• PAT margins of 4-6%
• Further reduction in working capital cycle to 85-90 days
• Continued focus on institutional demand and increasing wallet share with existing customers

Arisinfra Solutions' strong Q1 performance, coupled with its strategic initiatives and robust order book, positions the company well for sustained growth in the coming quarters. The company's focus on capital efficiency, margin improvement, and working capital optimization is likely to drive long-term value for stakeholders.

Note: All financial figures are in Indian Rupees (INR).

Arisinfra Solutions Limited's subsidiary, ArisUnitern RE Solutions Private Limited, has secured a Development Management Mandate worth approximately ₹40.00 crore from AVS Housing and Construction LLP. The contract encompasses development management, project execution, and material supply services through an integrated delivery model. The mandate is expected to be executed over approximately 2 to 3 years.

Contract Details

The agreement showcases ArisUnitern's full-stack solution that combines development management, project execution, and material supply under a single umbrella. This integrated approach is designed to enhance efficiency and potentially improve profit margins.

Strategic Significance

This contract represents a significant win for ArisUnitern RE Solutions and its parent company, Arisinfra Solutions Limited. It demonstrates the company's growing presence in the real estate development management sector and its ability to secure high-value projects.

Project Timeline and Scope

The mandate, valued at approximately ₹40.00 crore, is scheduled to be executed over a period of about 2 to 3 years. This timeline suggests a substantial project that will contribute to the company's revenue stream over the medium term.

Integrated Delivery Model

ArisUnitern's approach of combining development management, project execution, and material supply services under one contract highlights its capability to offer comprehensive solutions to real estate developers. This model could potentially lead to better coordination, cost efficiencies, and improved project outcomes.

Market Impact

The securing of this contract may be seen as a positive indicator for both ArisUnitern RE Solutions and the broader Arisinfra Solutions group. It could potentially boost investor confidence in the company's growth strategy and its ability to win significant contracts in the competitive real estate sector.

Company Background

ArisUnitern RE Solutions Private Limited is a subsidiary of Arisinfra Solutions Limited, a company that operates in the construction materials and real estate development management sectors. This contract adds to their portfolio of projects and strengthens their position in the market.

The contract is with a domestic entity and does not involve any related party transactions or promoter group interests, ensuring transparency in the deal structure.