Enviro Infra Engineers IPO Date, Price, Gmp Full Information
Bidding Dates-22 Nov '24 - 26 Nov '24
Price range-148
Min. Investment-14948 Rupya
Lot Size-101
Issue Size-650.43 Cr
About the Company
•Founded in - 2009
•Managing Director - Mr. Manish Jain
Enviro Infra Engineers is involved in the design, construction, operation, and maintenance of water and wastewater treatment facilities, as well as water supply scheme projects for government entities. The company's projects include sewage treatment plants (STPs), sewerage schemes (SS), and common effluent treatment plants (CETPs) within the wastewater treatment sector. For water supply schemes, the company's services extend to water treatment plants (WTPs), along with the installation of pumping stations and pipeline laying to ensure efficient water distribution.
Enviro Infra Engineers bids in tenders floated by state governments and urban local bodies to develop water and wastewater treatment projects, either through engineering, procurement, and construction (EPC) or hybrid annuity model (HAM) contracts. The company often executes these projects independently but also forms joint ventures with other infrastructure and construction firms to bid on and complete the projects.
Strengths
•Enviro Infra Engineers claims to implement treatment methods at various STPs and CETPs that meet zero liquid discharge (ZLD) standards, allowing the recycled water to be used for horticulture, washing, and industrial cooling processes.
•Over the last seven years ending June 30, 2024, Enviro Infra Engineers has established 28 wastewater treatment plants (WWTPs) and water supply and sanitation projects (WSSPs) across India, including 22 projects each with a capacity of 10 million litres per day (MLD) or more.
• Enviro Infra Engineers claims that the company is committed to environmental sustainability and showcases this through the integration of "Waste to Energy" projects. This initiative includes the installation of solar power plants at several facilities, where the generated solar energy is utilised on-site or fed into the national power grid.
• Enviro Infra Engineers claims to possess a broad spectrum of design and engineering skills, enabling the construction of STPs utilising a variety of technologies. These include the upflow anaerobic sludge blanket reactor (UASB), activated sludge process (ASP), moving bed biological reactor (MBBR), and biological nutrient removal (BNR).
• Over the years, the company has introduced several tertiary treatment technologies, including dual media filters, activated carbon filters, rapid sand gravity filters, chlorination, and UV treatment. Additionally, disc filters and ultra-filtration are provided in the current projects to ensure compliance with effluent standards.
• The company has seen a consistent increase in revenue from operations and profit after tax (PAT) over the past few years. Revenue from operations increased from Rs 223.52 crore in FY22 to Rs 338.10 crore in FY23 to Rs 728.91 crore in FY24. PAT increased from Rs 34.55 crore in FY22 to Rs 55.34 crore in FY23 to Rs 108.57 crore in FY24.
Risks
• Enviro Infra Engineers generates its revenue primarily from projects like WWTPs and WSSPs, which are funded by central and state governments. The contributions to the revenue from operations from WWTPs were Rs 78.42 crore (38.22%), Rs 202.96 crore (27.84%), Rs 233.78 crore (69.15%), and Rs 204.81 crore (91.63%) in the periods ending June 30, 2024, and FY24, FY23, and FY22, respectively. Similarly, WSSPs contributed Rs 119.98 crore (58.48%) and Rs 496.70 crore (68.14%) in the periods ending June 30, 2024, and FY24, and Rs 86.83 crore (25.68%) in FY23, and nil contributions in FY22. Any decrease in government funding could significantly impact the volume of projects awarded and, consequently, hit the company's operations and finances.
• Enviro Infra Engineers' ability to secure new projects relies heavily on competitive bidding processes. Any inability to qualify, compete effectively, or win bids in these processes could negatively impact the company's financial standing.
• Collaborations with joint venture partners are crucial for securing and executing certain government projects. As of June 30, 2024, joint ventures have contributed to 9 WWTP and WSSP projects totalling Rs 333.73 crore and WWTP and WSSP projects that are to be executed through joint ventures comprise Rs 664.54 crore, which makes up 34.86% of the company's order book. A partner's failure to meet obligations could lead to additional costs, reduced profits, or significant losses, affecting the company's overall performance and financial health.
• Enviro Infra Engineers has liabilities amounting to the extent of Rs 258.82 crore in its restated consolidated financial statements. These liabilities have not been accounted for in the restated financials. If these liabilities materialise, the company could face potential financial risks.
• Operation and maintenance (O&M) activities also contribute to the company's revenue. They contributed Rs 6.78 crore (3.31%), Rs 29.26 crore (4.01%), Rs 17.49 crore (5.17%), and Rs 18.72 crore (8.37%) to the revenue from operations for the period ended June 30, 2024, FY24, FY23, and FY22, respectively. The company's reliance on the revenue from these contracts means that any cancellations or service deficiencies could lead to penalties or contract terminations, adversely affecting the company's operations and financial outcomes.
• Currently, the company has projects in 8 states: Gujarat, Rajasthan, Delhi, Jharkhand, Karnataka, Uttar Pradesh, Chhattisgarh, and Madhya Pradesh. Any adverse developments in the socio-political or local environment of these states could negatively impact the company's operational performance.
• Enviro Infra Engineers is currently involved in certain outstanding legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company's business prospects.
• As of June 2024, Enviro Infra Engineers had a total indebtedness of Rs 562.59 crore. Any inability to repay or service these loans can harm the company's financial standing.
Financials
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