Teerth Gopicon Limited H2 & FY '25 Earnings Call - Key Takeaways, Positives, Negatives, and CBI Probe Update 🧵 _____________________ 🗞️🗞️🗞️ Introduction Teerth Gopicon Limited (TGL), ek infrastructure aur development company, conducted its H2 & FY '25 Earnings Conference Call on June 5, 2025. 🗞️Hosted by AKMIL Strategic Advisors, the call was led by Managing Director Dr. Maheshbhai Kumbhani. 🗞️Let’s dive into the key points, including positives, negatives, and the ongoing CBI probe. 📊 #tgl #earningscall 🗞️Company Overview TGL, established in 2019, specializes in civil engineering projects like water supply systems, sewerage networks, smart roads, and lake rejuvenation. 🗞️📈Ab company ne renewable energy sector mein bhi entry ki hai, with a 220 MW project. 🗞️📈Their in-house design capabilities and machinery fleet are core strengths. 💪 #infrastructure #renewableenergy 🗞️📈Financial Highlights: Positives Revenue Growth: FY '25 total revenue reached ₹11,855 lakhs, up 12.8% from ₹10,510 lakhs in FY '24. Yeh 202.81% growth hai FY '23 se FY '25 tak! 🚀 🗞️📈EBITDA Improvement: EBITDA for FY '25 was ₹2,490 lakhs with a 21% margin, compared to ₹1,829 lakhs and 17% margin in FY '24. 🗞️📈PAT Growth: Profit After Tax (PAT) grew 11.07% to ₹1,284 lakhs in FY '25 from ₹1,156 lakhs in FY '24. 🗞️📈Net Worth Surge: Net worth increased to ₹75.97 crores in FY '25 from ₹19.28 crores in FY '24, thanks to equity infusion and reserves growth. 🗞️📈Robust Order Book: TGL has a ₹930 crore infra order book (90% Jal Jeevan Mission) and a ₹800 crore renewable energy project. #financials #growth 🗞️📈Industry Tailwinds India’s infrastructure sector is booming, with strong government focus on roads, water, urban development, and renewable energy. Budget 2024-25 ne capital investments ko boost kiya hai. 🗞️📈TGL is well-positioned to capitalize on schemes like Namami Gange (₹22,500 million budget) and Ujjain Simhastha 2028 (₹18,000 crore). Renewable energy mein bhi badi opportunity hai! 🌟 #infraboom #cleanenergy 🗞️📉Financial Challenges: Negatives Revenue Decline in H2 FY '25: H2 revenue fell 26% compared to H1, mainly due to delayed payment disbursements by MP Jal Nigam. 🗞️📉Yeh delays ne cash flow ko impact kiya. 😔 PAT Margin Contraction: H2 FY '25 PAT margin shrank to 6.61% due to higher finance costs, fixed overheads, and increased provisioning. Receivables Issue: ₹27 crore receivables are pending as of March 31, 2025, with funds approved but not released by MP Jal Nigam due to technical issues. 🗞️📉Employee Reduction: Employee expenses dropped from ₹3.5 crore in H1 to ₹1 crore in H2, indicating a reduction in workforce due to slow project progress. #challenges #cashflow 📉☠️ CBI Probe: Bank Guarantee (BG) Issue Ek major concern hai TGL ke bank guarantees (BGs) ka issue, jo MP Jal Nigam ke projects ke liye submit kiye gaye the. 🗞️📉Here’s the current status: Background: Two years ago, TGL submitted BGs for MP Jal Nigam projects. Recently, the department raised concerns about their authenticity, claiming they were not genuine. 🗞️TGL’s Response: Company ne internal review kiya aur fake document provider ke khilaf police complaint file ki. 🗞️They’ve also approached the Madhya Pradesh High Court, filing a writ petition. 🗞️Court Developments: The High Court granted an interim stay, prohibiting MP Jal Nigam from taking coercive action. 🗞️TGL ko fresh BGs submit karne ke liye extra time diya gaya hai, and the matter is under CBI investigation. 🗞️🚨Current Update: TGL has applied for an extension to submit fresh BGs until CBI findings are received (expected by June 30, 2025). 🗞️The company has arranged fresh BGs but is awaiting CBI’s report before proceeding. 🗞️Impact: The BG issue 📉has caused payment delays, affecting H2 revenue and operations. If unresolved, it could impact the ₹837 crore (90% of ₹930 crore) Jal Jeevan Mission order book. #cbiprobe #bankguarantee 🗞️📈Renewable Energy and Real Estate Plans Renewables: TGL has a 220 MW renewable energy project (₹800 crore) under Power Purchase Agreement (PPA) mode, with execution expected over two years. 🗞️📈PPA signing is in progress, but no revenue was recorded in H2 FY '25. 🗞️📈Real Estate: TGL is entering real estate with an Indore project (₹454 crore investment) with a revenue potential of ₹1,800 crore over 3-4 years. 🗞️📈 Land acquisition and legal processes are ongoing, with execution likely starting next year. #solar #realestate 🗞️📈Management’s Outlook Dr. Mahesh Kumbhani expressed confidence in TGL’s growth, citing a strong order book, government partnerships, and alignment with India’s infra and clean energy goals. 🗞️📈Unhone stakeholders ke trust aur transparency par zor diya. 🗞️📉However, they couldn’t provide specific revenue guidance for H1 FY '26 due to external uncertainties. 🗞️📈TGL is committed to resolving the BG issue ethically and transparently. 🙏 #management #vision 🗞️📉 Investor Concerns and Responses Investors raised valid concerns during the Q&A: BG Resolution Timeline: Investors asked about the worst-case scenario if the🚨CBI probe outcome is unfavorable. 🗞️📉Management avoided specifics due to the sub-judice nature but assured confidence in their ethics. 🗞️📉Revenue Delays: Questions about unrealized revenue and payment disbursements were met with assurances of working on backlog and meeting expectations. 🗞️📉Diversification Risks: Some investors felt TGL is spreading itself too thin across infra, renewables, and real estate. 🗞️📈Management defended their planning, claiming internal arrangements are in place. 🗞️📈Transparency: Investors demanded quarterly updates for better clarity. Management agreed to consider it, despite SME norms requiring only half-yearly results. #investorconcerns #transparency 🗞️📈Positives Recap Strong revenue and PAT growth in FY '25. 🗞️📈Significant net worth increase and improved EBITDA margins. Robust ₹1,730 crore order book (₹930 crore infra + ₹800 crore renewables). 🗞️📈Strategic entry into high-growth renewable energy and real estate sectors. Alignment with government initiatives like Namami Gange and Jal Jeevan Mission. #bullish 🗞️📉Negatives Recap H2 FY '25 revenue decline and margin contraction due to payment delays. 🗞️📉Uncertainty around the BG issue and CBI probe outcome. Pending receivables and reduced workforce impacting operations. Lack of specific revenue guidance for H1 FY '26. Potential risks from diversification into multiple sectors. #bearish 🗞️📉 CBI Probe: What to Watch The CBI probe’s outcome by June 30, 2025, will be critical. A favorable resolution could unlock ₹837 crore of Jal Jeevan Mission orders, boosting cash flow and investor confidence. 🗞️📉An adverse outcome might delay or jeopardize these projects, impacting financials. 🚨Investors should monitor TGL’s disclosures for updates. 🔍 #cbi #risk 🚨🚨🚨 Conclusion Teerth Gopicon Limited has shown resilience with strong FY '25 financials and a promising order book, but the BG issue and payment delays pose challenges. Management’s commitment to transparency and ethical resolution is reassuring, but investors need more clarity on timelines and execution. Stay tuned for CBI probe updates and potential quarterly disclosures.💬 #tgl #investing