SRM Contractors has reported robust financial performance for the first quarter, alongside efficient utilization of its Initial Public Offer (IPO) proceeds.

Financial Highlights

The company's unaudited consolidated financial results for Q1 show significant year-on-year growth:

SRM Contractors has demonstrated substantial growth across all key financial metrics, with revenue from operations more than doubling year-on-year. The company's profit after tax showed an impressive increase of 167.30% compared to the same quarter last year.

IPO Proceeds Utilization

CARE Ratings Limited, serving as the monitoring agency, has reported that SRM Contractors is effectively utilizing its IPO proceeds, with no deviations from the disclosed objectives. Key points from the monitoring agency report include:

1. Total IPO proceeds: Rs. 130.20 crore
2. Amount utilized as of June 30, 2025: Rs. 91.26 crore
3. Unutilized funds: Rs. 38.94 crore

During Q1, the company utilized Rs. 3.06 crore primarily for purchasing construction equipment and machinery. The unutilized funds are currently deployed in fixed deposits with HDFC Bank and Yes Bank, earning returns between 4.50% to 7.50%.

Allocation of IPO Proceeds

The IPO proceeds are being allocated across six key areas:

1. Capital expenditure for equipment
2. Debt repayment
3. Working capital requirements
4. Joint venture investment
5. General corporate purposes
6. Issue-related expenses

Management Commentary

Sanjay Mehta, Managing Director of SRM Contractors Limited, stated, "We are pleased with our strong start to the fiscal year, as reflected in our Q1 results. The significant growth in revenue and profitability demonstrates the robustness of our business model and the increasing demand for our services. We remain committed to efficiently utilizing our IPO proceeds to drive long-term growth and value creation for our shareholders."

Audit Committee Review

The company's Audit Committee reviewed the monitoring agency report on August 14, 2025, ensuring transparency and compliance with regulatory requirements.

SRM Contractors continues to focus on its core business of civil construction, leveraging the IPO proceeds to strengthen its market position and operational capabilities. The company's strong financial performance and disciplined capital allocation strategy position it well for sustained growth in the coming quarters.

SRM Contractors Limited, a prominent player in the construction sector, has reported a robust financial performance for the quarter ended June 30. The company's standalone profit surged by 179% year-over-year, while its revenue witnessed a significant uptick of 164%.

Financial Highlights

The Jammu-based company's standalone profit for Q1 stood at ₹1,305.96 crore, a substantial increase from ₹467.90 crore in the corresponding quarter of the previous year. This impressive growth was primarily driven by a sharp rise in revenue from operations, which climbed to ₹14,309.34 crore from ₹5,421.71 crore in the same period last year.

*All figures in ₹ crore, except EPS

Consolidated Performance

On a consolidated basis, SRM Contractors reported a profit of ₹1,274.81 crore, compared to ₹476.97 crore in the same quarter last year, marking a 167.3% increase. The consolidated revenue from operations rose to ₹14,239.66 crore, up 159.5% from ₹5,486.71 crore in the previous year's corresponding quarter.

Operational Efficiency

The company's operational efficiency improved significantly during the quarter. Despite the substantial increase in revenue, the cost of materials consumed as a percentage of total revenue decreased from 60.3% to 70.1%, indicating better cost management and operational leverage.

Segment Information

As per Indian Accounting Standard 108, SRM Contractors operates in a single business segment. The company's operations include various subsidiaries and joint ventures, such as SP Mangal Murti Enterprises Private Limited, Loran Valley Power Projects Private Limited, and several project-specific joint operations.

Conclusion

SRM Contractors' stellar performance demonstrates its strong position in the construction sector. The substantial growth in revenue and profit, along with improved operational efficiency, indicates the company's ability to capitalize on market opportunities and execute projects effectively. Investors and market watchers will likely keep a close eye on the company's future performance and order book growth in the coming quarters.

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on August 14. The company's auditors have carried out a limited review of these results and have issued an unmodified opinion.