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### EMS Ltd Q1 FY25 Results Analysis
#### **1. Consolidated Sales and Profit Growth:**
- **Revenue from Operations:**
- Q1 FY25: ₹206.28 crore
- Q1 FY24: ₹137.97 crore
- **Growth:** 49.51%
- **EBITDA:**
- Q1 FY25: ₹52.53 crore
- Q1 FY24: ₹33.43 crore
- **Growth:** 57.13%
- **Profit Before Tax (PBT):**
- Q1 FY25: ₹49.41 crore
- Q1 FY24: ₹30.54 crore
- **Growth:** 61.80%
- **Profit After Tax (PAT):**
- Q1 FY25: ₹37.16 crore
- Q1 FY24: ₹22.78 crore
- **Growth:** 63.12%
#### **2. Segment Results:**
EMS Ltd operates in a single segment focused on infrastructure, particularly sewerage solutions, water supply systems, and related EPC projects. As the company operates in a single segment, there are no segmented results provided.
#### **3. Profit Margins:**
- **Gross Profit Margin:** Q1 FY25 Gross Profit stood significantly higher than Q1 FY24 due to improved cost management and higher revenue growth.
- **EBITDA Margin:**
- Q1 FY25: 25.48%
- Q1 FY24: 24.22%
- **Net Profit Margin:**
- Q1 FY25: 18.01%
- Q1 FY24: 16.51%
#### **4. Profitability, Earnings, Leverage, and Valuation Ratios:**
- **Return on Equity (ROE):** The ROE has seen an improvement due to the substantial growth in net profits.
- **Return on Assets (ROA):** The ROA also increased, reflecting better utilization of assets to generate profits.
- **Debt to Equity Ratio:** The company has maintained a conservative leverage position, focusing on internal accruals and minimal debt usage, which supports its stable growth.
- **P/E Ratio:** Given the rise in earnings, the P/E ratio indicates a favorable valuation compared to its peer group.
#### **5. Historical Performance:**
EMS Ltd has consistently grown its revenue and profits over the past few years. The company's strategic focus on infrastructure projects, especially in sewerage and water supply systems, has resulted in sustained growth.
#### **6. Peer Group Analysis:**
EMS Ltd's peers in the infrastructure and EPC segment include companies like L&T, NCC Ltd, and Tata Projects. Compared to its peers, EMS Ltd has shown strong growth in both revenue and profitability, largely due to its niche focus on sewerage and water supply projects. Its EBITDA and net profit margins are competitive within the industry.
#### **7. Future Outlook:**
The company’s outlook remains positive due to several factors:
- **Government Infrastructure Initiatives:** With the Indian government's focus on urban development, EMS Ltd is expected to benefit from increased allocations to water supply and sewerage projects.
- **Strong Order Book:** The company has secured several high-value projects in Q1 FY25, ensuring revenue visibility for the upcoming quarters.
- **Expanding Market Reach:** EMS Ltd is diversifying its operations geographically and into new segments, such as electricity transmission and distribution, which should further support growth.
#### **8. About the Company:**
Incorporated in 2010, EMS Ltd is a leading multi-disciplinary EPC company specializing in infrastructure projects, primarily in the sewerage and water supply sectors. The company also has interests in electricity transmission and distribution, and its project execution capabilities are spread across several Indian states.
### Conclusion:
EMS Ltd has reported robust financial performance in Q1 FY25, with significant growth in revenue and profitability. The company's strategic focus on government-funded infrastructure projects, coupled with a strong order book, positions it well for continued growth in the coming quarters. Its strong margins and conservative leverage make it a competitive player in the infrastructure and EPC space.
