Telge Projects Limited, a global leader in structural and BIM engineering services, has reported a marginal increase in revenue for the first half of the fiscal year (H1). The company's revenue stood at ₹21.48 crore, compared to ₹21.06 crore in the same period of the previous year, representing a modest growth of 2%.

Temporary Slowdown in U.S. Market

The management attributed the slow growth to a temporary slowdown in the U.S. market, which was impacted by a 45-day government shutdown and policy transitions. These factors led to project delays, although the company emphasized that projects were put on hold rather than cancelled.

Financial Performance

Despite the flat revenue growth, Telge Projects showed improvements in other financial metrics:

It's worth noting that the financial figures presented in the table differ from those mentioned in the opening paragraph. This discrepancy may be due to different reporting periods or adjustments made after the initial announcement.

Customer Base Expansion

The company reported significant growth in its customer base, adding 27 new clients during H1. The total customer count increased from 53 to 80, indicating strong market penetration and diversification of the client portfolio.

Revenue Bifurcation

Telge Projects' revenue is primarily driven by its steel engineering services:

Future Outlook

The company projects a strong recovery in the second half of the fiscal year, with management expecting 25-30% growth. Telge Projects has set a full-year revenue target of ₹37-38 crore minimum, supported by:

1. Confirmed orders worth ₹10.4 crore
2. High-probability orders (advanced stage) of ₹8-10 crore
3. Active RFQs under estimation valued at ₹15-18 crore

The company's current execution capacity stands at ₹4.5 to 5 crore per month, indicating room for growth without immediate capacity constraints.

Strategic Initiatives

Telge Projects is focusing on several strategic initiatives to drive future growth:

1. R&D Focus: The company is investing in automation modules, optimization tools, and AI-driven BIM dashboards to improve efficiency and competitiveness.
2. Global Expansion: With a presence in India and the USA, the company is delivering projects across six or more countries and plans to expand into Canada, New Zealand, and Southeast Asia.
3. Inorganic Growth: The company is exploring opportunities to add new service lines and strengthen its ecosystem in the U.S. market.
4. Governance Enhancement: Telge Projects has started releasing quarterly unaudited results, a step towards potential mainboard migration and increased transparency.

IPO Proceeds Allocation

The company has allocated its IPO proceeds across various categories to support growth:

While Telge Projects faced challenges in H1, the company's management remains optimistic about its growth prospects, citing a strong order book and strategic investments in technology and human resources. Investors will be watching closely to see if the projected H2 recovery materializes as expected.

Telge Projects Limited, a structural and BIM engineering company, has reported significant growth in its financial performance for the first half of the fiscal year. The company's results demonstrate substantial expansion and strategic moves.

Financial Performance

Telge Projects delivered impressive revenue growth in H1:

• Revenue: INR 17.00 crores
• Year-on-year growth: 119%
• EBITDA: INR 3.03 crores
• EBITDA growth: 105%

The company's strong performance is attributed to increased execution of projects and expansion of its client base.

Client Expansion

Telge Projects has shown remarkable progress in expanding its customer base:

• 27 new clients added in H1
• Total customer base expanded to 80

This significant increase in clients suggests a growing market presence and demand for the company's services.

Future Outlook

Telge Projects has provided guidance for the second half and the full fiscal year:

• H2 revenue expected to be 25-30% higher than H1
• Projected full-year revenue: INR 37-38 crores (organic growth)

The company's outlook indicates confidence in its growth trajectory and market position.

Strategic Considerations

Telge Projects is currently evaluating two potential acquisitions in the United States. These acquisitions are being considered for:

• Forward integration
• Backward integration

If pursued, these strategic moves could potentially enhance the company's value chain and market presence in the US.

Conclusion

Telge Projects' financial results for H1 demonstrate a period of significant growth, particularly in revenue and client acquisition. The company's projections for the full year and its consideration of strategic acquisitions suggest an ambitious growth strategy. However, investors should note that future performance may be subject to various market factors and execution risks, especially concerning potential acquisitions and international expansion.

As Telge Projects progresses through the fiscal year, stakeholders will likely be watching closely to see how the company manages its growth trajectory and potential expansion into new markets.