Concord Enviro Systems Reports Mixed Q1 Results, Maintains 18-20% Growth Guidance
Concord Enviro Systems Limited reported stable Q1 revenue at INR 1,024.00 million, with improved EBITDA and PAT. The company maintains its 18-20% full-year revenue growth guidance despite a flat Q1. The order book stands at INR 5,366.00 crores, with ZLD projects comprising 59%. Recent wins include an INR 800.00 million O&M order. Management expects 60-65% of annual revenue in H2. The company is expanding into solar, green hydrogen, and carbon capture technologies while focusing on operational efficiency.
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Concord Enviro Systems Limited , a leading provider of water and wastewater treatment solutions, has reported a mixed performance for the first quarter. The company maintained its revenue growth guidance of 18-20% for the full year, despite a flat top-line in Q1.
Q1 Financial Highlights
- Revenue remained stable at INR 1,024.00 million, comparable to the same period last year
- EBITDA increased to INR 107.00 million from INR 15.00 million in the same period last year
- Adjusted EBITDA, excluding one-off gains, stood at INR 27.50 million
- Profit After Tax (PAT) turned positive at INR 51.00 million, compared to a loss of INR 26.00 million in the same quarter last year
Order Book and Business Outlook
Concord Enviro's order book as of June 30 stood at INR 5,366.00 crores, slightly up from INR 5,327.00 crores at the end of March. The company is actively pursuing quotes worth approximately INR 2,500.00 crores, with an expected conversion rate of about 25%.
The order book composition is as follows:
| Category | Percentage |
|---|---|
| Zero Liquid Discharge (ZLD) projects | 59% |
| Compressed Biogas (CBG) orders | 15% |
| Operation and Maintenance (O&M) contracts | 26% |
Recent Order Wins and Project Updates
- Secured an INR 800.00 million O&M order from a large listed customer
- Received an INR 125.00 million O&M order from a customer in Mexico
- Obtained an INR 150.00 million order from an automobile client
- Successfully commissioned its first Mexico project in July
Management Commentary
Prayas Goel, Chairman and Managing Director, stated, "Q1 is typically focused on setting the strategic direction for the year and preparing execution strategies for large orders, including design completion. Our current order book has a second-half heavy delivery schedule, including exports and CBG projects."
The company expects 60-65% of its annual revenue to be generated in the second half, with Q3 and Q4 each projected to deliver around INR 200.00-215.00 crores in revenue.
Expansion into New Sectors
Concord Enviro is making early moves into high-potential domains such as:
- Solar and photovoltaics
- Green hydrogen
- Carbon capture technologies
- Semiconductors
The company is engaging with industry leaders in these spaces to co-develop future-ready solutions.
Operational Efficiency and Margin Outlook
Despite the flat revenue in Q1, management expects to maintain its historical EBITDA margin of around 16% for the full year. The company is investing in strengthening its leadership and onboarding senior talent across strategic functions to support future growth.
Conclusion
While Concord Enviro Systems faced a challenging first quarter, the management remains optimistic about achieving its full-year growth targets. The company's diverse order book, expansion into new sectors, and focus on operational efficiency position it well for the remainder of the year. Investors will be closely watching the execution of the order book in the second half to gauge the company's ability to meet its growth guidance.
Historical Stock Returns for Concord Enviro Systems
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.06% | +2.28% | -5.05% | -8.28% | -40.08% | -40.08% |
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