Artefact Projects Limited Reports Q1 Profit, Approves Rs. 60 Crore Expansion Plan

Artefact Projects , a project management consultancy firm, has announced its financial results for the quarter ended June 30, along with significant strategic decisions aimed at fueling growth and expansion.

Financial Performance

The company reported a net profit of Rs. 101.81 crore for the first quarter. Revenue from operations stood at Rs. 312.48 crore, while total income reached Rs. 433.83 crore. Earnings per share (EPS) for the quarter was Rs. 1.40.

Strategic Expansion Plans

The Board of Directors has approved a significant capital expenditure plan of Rs. 60 crore to support business expansion over the next 24 months. This investment will focus on enhancing office infrastructure, upgrading IT systems, and acquiring hardware and software to facilitate growth, particularly in the railways and urban infrastructure verticals.

Office Space Acquisition

As part of the expansion strategy, the company plans to purchase two floors of office premises for a total consideration of Rs. 31 crore. The acquisition involves two transactions:

1. Rs. 15.50 crore for premises from Mr. Manoj Shah, a relative of a Director/Promoter and Shareholder.
2. Rs. 15.50 crore for premises from Mr. Chetan Shah, a Promoter and Shareholder.

Both transactions are subject to necessary approvals and compliance with related party transaction provisions.

Increase in Authorized Capital

To support its growth initiatives, Artefact Projects has approved an increase in its authorized share capital from Rs. 10 crore to Rs. 15 crore. This change, subject to shareholder approval, will amend the Capital Clause V of the company's Memorandum of Association.

Board Appointments and Reappointments

The Board has recommended the reappointment of Kaustubh Prakash Paunikar as an Independent Director for a second term of five years, effective from September 30, 2025, subject to shareholder approval at the upcoming Annual General Meeting.

Accounting Policy Change

The company has implemented a new accounting policy for revenue recognition. Revenue from services is now accounted for based on client approval and acceptance. This change resulted in:

• An increase in work in progress by Rs. 351.27 crore
• A decrease in sales by Rs. 448.05 crore
• A reduction in profits by Rs. 96.78 crore for the quarter

Artefact Projects Limited's strategic decisions and financial results reflect its focus on sustainable growth and expansion in the project consultancy sector. The company's investments in infrastructure and technology, coupled with its financial performance, position it well for future opportunities in the railways and urban infrastructure segments.