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 company recently listed on the BSE SME platform, has reported significant growth in its financial performance for the first half of the fiscal year. The company's standalone and consolidated results, along with key corporate actions, paint a picture of expansion and strategic moves.

Financial Performance

Telge Projects demonstrated strong revenue growth in H1:

The company's standalone revenue saw a robust increase of 56.88%, primarily driven by increased execution of international detailing projects. On a consolidated basis, the growth was even more pronounced at 119.00%.

Profit Analysis

While standalone net profit declined slightly from ₹117.85 lakhs to ₹105.74 lakhs, it's important to note that the previous year's figure included a non-recurring income of ₹42.21 lakhs from property sale gains. Adjusting for this, the company's core profitability shows improvement.

Consolidated net profit, however, showed a substantial increase of 82.05%, rising from ₹106.22 lakhs to ₹193.37 lakhs, indicating strong performance across the group's operations.

Initial Public Offering (IPO)

Telge Projects successfully completed its Initial Public Offer, marking a significant milestone for the company. Key details of the IPO include:

• Allotment of 25,94,400 equity shares
• Issue price of ₹105 per share
• Gross proceeds raised: ₹2,724.12 lakhs
• Listed on: BSE SME platform

The successful IPO and subsequent listing on the BSE SME platform may provide the company with additional capital for growth and increased visibility in the market.

Corporate Governance

In a move to strengthen its corporate governance practices, the Board of Directors has appointed KPN Associates as the Secretarial Auditor. This appointment demonstrates the company's commitment to maintaining high standards of compliance and transparency.

Outlook

Telge Projects' financial results indicate a period of significant growth, particularly in its international operations. The successful IPO and strong consolidated performance suggest that the company may be well-positioned for further expansion. However, investors should note that future performance may be subject to various market factors and execution risks.

As Telge Projects navigates its post-IPO phase, stakeholders will likely be watching closely to see how the company utilizes its newly raised capital and manages its growth trajectory in the coming quarters.