Capacit'e Infraprojects Limited , a prominent player in the building construction sector, has announced a significant new project that reinforces its position in the high-rise residential market. The company has secured a contract worth ₹1,518.00 crore from Twenty-Five Downtown Realty Limited for the construction of ultra-luxury residential towers in Mumbai.

Project Details

The project, named '25 Downtown' by Hubtown, involves the construction of four ultra-luxury super high-rise residential towers in Mahalaxmi, Mumbai. These towers will feature state-of-the-art amenities, including:

• A luxurious clubhouse
• Penthouses with panoramic views of the Willingdon Golf Course and the Arabian Sea

It's worth noting that the contract value of ₹1,518.00 crore excludes taxes and cess, indicating the substantial scale of the project.

Management Commentary

Rahul Katyal, Managing Director of Capacit'e Infraprojects Limited, expressed his enthusiasm about the project, stating, "We are pleased to announce that our esteemed client has once again reinforced the trust and confidence in Capacit'e's ability to complete a project with best-in-class safety and quality standards supported by a competent engineering work-force."

Katyal further added, "This order cements Capacit'e's dominance as one of the top leaders in the Super High-Rise building construction in India. Our consistent track record of delivering landmark projects of scale and complexity backed by innovative construction technology has made us one of the preferred partners for India's leading developers."

Company Position and Strategy

This new contract highlights Capacit'e Infraprojects' strong presence in the building construction space. The company has built partnerships with leading real estate developers across the country, reinforcing its position as a trusted name in the industry. With a dedicated focus on the buildings segment, Capacit'e is rapidly emerging as a marquee contractor, known for its technological edge, robust asset base, and rich EPC experience.

Project Transparency

In line with regulatory requirements, Capacit'e Infraprojects has confirmed that neither the promoters, promoter group, nor any group companies hold any interest in Twenty-Five Downtown Realty Limited, the entity awarding the contract. This clarification ensures that the transaction is not classified as a related party transaction, maintaining transparency in the company's operations.

Market Impact

Following this significant announcement, the trading window for Capacit'e Infraprojects Limited's securities will remain closed for 48 hours. This temporary closure is in accordance with SEBI regulations and the company's internal code of conduct for insider trading prevention.

As Capacit'e Infraprojects continues to secure high-value projects, it solidifies its role in shaping India's urban landscape, particularly in the luxury residential sector. The '25 Downtown' project represents not only a substantial financial boost for the company but also a testament to its capabilities in executing complex, high-end construction projects in prime urban locations.

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.