Capacit'e Infraprojects Limited , a prominent player in the construction sector, has reported a significant recovery in its quarterly results, marking a turnaround as lockdown restrictions eased. The company's performance highlights a robust rebound in the infrastructure sector.

Financial Highlights

Capacit'e Infraprojects posted impressive financial results for the quarter:

The company's total income surged to ₹187.50 crore, a substantial increase from ₹23.70 crore in the previous quarter. This remarkable growth of 691% signals a strong recovery in operations.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) turned positive at ₹45.30 crore, compared to a loss of ₹18.40 crore in the prior quarter. The company also reported a Profit After Tax (PAT) of ₹4.60 crore, a significant improvement from the previous quarter's loss of ₹42.40 crore.

Operational Recovery

Capacit'e Infraprojects has shown strong signs of operational recovery:

• All construction sites are now fully operational
• Labor availability has been restored to 100% of pre-COVID levels
• Collections improved to ₹362.00 crore during the quarter

Order Book and Future Outlook

The company maintains a robust order book of ₹9,873.00 crore, excluding MHADA projects. The order book composition reflects a balanced mix:

• 57% from the public sector
• 43% from the private sector

Management has taken a prudent step by removing a suspended order worth ₹300.00 crore from the order book.

Looking ahead, Capacit'e Infraprojects expects:

• Substantial revenue increases in upcoming quarters
• To achieve gross debt-free status by June 2023

Financial Position

The company's financial position remains strong:

• Net debt to equity ratio stands at 0.14x
• Cash and bank balances of ₹351.69 crore

This solid financial footing provides Capacit'e Infraprojects with the flexibility to capitalize on future growth opportunities.

The management's optimistic outlook, coupled with the company's improved financial performance and strong order book, suggests that Capacit'e Infraprojects is well-positioned for growth in the coming quarters as the infrastructure sector continues to recover.

Capacit'e Infraprojects Limited , a prominent player in the construction industry, has unveiled an updated report on its ongoing litigation involving multiple real estate companies. The disclosure, made in compliance with SEBI regulations, sheds light on the company's legal pursuits across various forums, including Karnataka RERA, NCLT, and the Bombay High Court.

Key Litigation Highlights

RERA and NCLT Cases

Capacit'e has filed a petition with Karnataka RERA seeking enforcement of rights for the registration of 24 flats valued at Rs. 12.61 crore. In a separate case, the company's operational creditor petition against Ramakrishna Housing Private Limited for Rs. 15.83 crore has been restored by the NCLT, Amaravati Bench.

Insolvency Proceedings

The company is actively involved in multiple insolvency cases:

• Against Siddhi Raj Housing Projects Pvt. Ltd., Capacit'e's claim of Rs. 6.37 crore has been admitted.
• In the case of Sankalp Siddhi Developers Pvt. Ltd., an operational claim of Rs. 7.67 crore has been admitted, along with a financial claim for two flats.

Additional Legal Actions

Capacit'e Infraprojects is pursuing several other significant legal actions:

1. A complaint under MahaRERA provisions against Radius & Deserve Builders LLP for the execution and registration of agreements for 10 flats valued at Rs. 20.31 crore.

2. An insolvency petition against Rohan Developers Private Limited, claiming Rs. 22.74 crore, of which the IRP has admitted Rs. 10.26 crore.

3. A financial creditor claim of Rs. 21.61 crore against Epitome Residency Private Limited, which has been admitted in NCLT.

4. An application in the Bombay High Court against T Bhimjyani Realty Private Limited for a claim of Rs. 58.08 crore, with a settlement reached subject to compliance.

Implications for Capacit'e Infraprojects

These legal actions represent a significant portion of Capacit'e Infraprojects' outstanding receivables. The company's aggressive pursuit of these claims demonstrates its commitment to recovering dues and protecting its financial interests.

The outcomes of these cases could have substantial implications for Capacit'e's financial position. Successful resolutions could lead to significant cash inflows, potentially strengthening the company's balance sheet and working capital position.

Industry Insights

The extensive litigation portfolio of Capacit'e Infraprojects offers a glimpse into the challenges faced by construction companies in the real estate sector. It highlights the importance of robust contractual agreements and the need for effective dispute resolution mechanisms in the industry.

As these legal proceedings unfold, stakeholders will be keenly watching their impact on Capacit'e Infraprojects' financial performance and its relationships within the real estate ecosystem. The company's ability to navigate these complex legal challenges may well be a testament to its operational resilience and financial management capabilities.