EMS Limited has announced a significant contract win, securing an order worth ₹184 crore from UP Jal Nigam (Urban). This development marks a substantial milestone for the company in the infrastructure sector.

Order Details

The company has received a Letter of Acceptance (LOA) for a tender from UP Jal Nigam (Urban), following its earlier intimation of receiving the lowest bidder (L1) status. The order specifics are as follows:

Project Significance

This order is part of the Fatehpur Sewerage and sewage treatment scheme, highlighting EMS Limited's role in developing crucial urban infrastructure. The project aims to improve the sewerage system in Fatehpur, potentially enhancing the quality of life for local residents and contributing to better urban sanitation.

Financial Implications

The secured order, valued at ₹183.81 crore (excluding GST), represents a significant addition to EMS Limited's order book. This contract is expected to positively impact the company's revenue stream over the next two years, aligning with the project's 24-month execution timeline.

Market Position

This contract win may strengthen EMS Limited's position in the infrastructure sector, particularly in water and sewage management projects. It demonstrates the company's competitive edge in securing government contracts and its capability to undertake large-scale urban development projects.

Conclusion

The ₹184 crore order from UP Jal Nigam marks a notable achievement for EMS Limited, potentially boosting its market presence and financial outlook. As the company embarks on this significant project, stakeholders will likely keep a close watch on its execution and the impact on EMS Limited's overall performance in the coming quarters.

EMS Limited , a prominent player in water and wastewater projects, has reported its financial results for the first quarter, showing modest growth despite challenges posed by an early monsoon season.

Financial Highlights

• Revenue for Q1 stood at Rs. 211.32 crores, up 3.73% from Rs. 203.72 crores in the same period last year.
• Profit After Tax (PAT) increased by 1.46% to Rs. 37.38 crores, compared to Rs. 36.84 crores in Q1 of the previous year.

Impact of Early Monsoon

The company attributed the lower-than-expected growth to early monsoon rains, which affected underground sewerage and water supply line work in the last 15 days of June. This impact was particularly significant as EMS Limited operates primarily in water and wastewater projects, which constitute about 75% of its business.

Management Commentary and Outlook

Despite the challenges, the management remains optimistic about the company's prospects:

• The company maintains its guidance of 20-25% revenue growth for the full year, expecting to reach Rs. 1,250.00 crores.
• EMS Limited holds an unexecuted order book of Rs. 2,500.00 crores, with an additional Rs. 4,000.00 crores in pipeline bids.
• The company expects stronger performance in the second half of the fiscal year as underground work resumes post-monsoon season.

Order Book and Project Pipeline

EMS Limited's strong order book position underscores its potential for future growth:

• Current unexecuted order book stands at Rs. 2,500.00 crores.
• The company has successfully secured two orders worth Rs. 200.00 crores in the current financial year.
• Bids in the pipeline amount to approximately Rs. 4,000.00 crores.

Financial Strategy

The company maintains a conservative financial approach:

• EMS Limited remains debt-free, focusing on organic growth through internal accruals.
• The management targets a consistent 25-30% annual revenue growth over the long term.

Operational Focus

• The company primarily operates in water and wastewater projects, which account for 75% of its business.
• EMS Limited is also involved in electrical transmission and building works, which complement its core operations and help in meeting eligibility criteria for certain projects.

Future Prospects

Looking ahead, EMS Limited sees significant opportunities in the water and wastewater sector:

• The management estimates a potential market of Rs. 15.00 lakh crores in urban areas for water and wastewater projects.
• The company is exploring opportunities in the reuse of wastewater, addressing growing water scarcity concerns.

EMS Limited's Q1 results, while showing modest growth, reflect the seasonal nature of its business and the impact of external factors like early monsoons. However, the company's strong order book, debt-free status, and focus on the growing water and wastewater sector position it well for future growth. As underground work resumes post-monsoon, EMS Limited expects to accelerate its performance in the latter half of the fiscal year, aiming to meet its full-year guidance.