DEE Development Engineers Limited (herein referred to as (‘DDE’), one of the most trusted names in Process Piping Solutions, announced its Q1 FY25 results today. The Board of Directors of DDEL, at its meeting held on August 14 2024, recorded the unaudited financial results for the first quarter of the financial year 2024-25.

Commenting on the results, Krishan Lalit Bansal, Chairman, DEE Development Engineers Limited said, “To start with, I, on behalf of DEE Development Engineers management team, would like to thank the entire Investment Community for the incredible response to our IPO. We really do not know how to thank each and every one of you for the faith bestowed upon us. Your support and trust in us impose upon us a greater responsibility to deliver and meet your expectations. I want to assure you that our entire team is committed to taking DEE Development Engineers to new heights. The primary objectives of our IPO were to fund working capital requirements and prepay outstanding borrowings. We are pleased to share that we are making significant progress toward these goals. Of the total IPO proceeds of Rs 2.97 billion, Rs 935.3 million has been utilised so far: Rs 179.8 million for working capital needs and Rs 755.5 million to pay off debt.

We are pleased to report that the company demonstrated robust growth in the quarter gone by, with Total Income increasing by 18.0% year-over-year to Rs 1.88 billion . The order book as on 30th June 2024 stood at Rs 8.03 billion  as against Rs 8 billion  as on March 31 2024.

EBITDA surged by 72.9% to Rs 279.9 million  from Rs 161.9 million in Q1 FY24, resulting in an EBITDA margin of 14.9%, with a 472 basis point expansion year-over-year.

The company’s PAT reached Rs 31.9 million in Q1 FY25, with a PAT margin of 1.7%, expanding 456 basis points over the Q1 FY24.

The company remains steadfast in its commitment to automation and capacity enhancement. We are in the process of establishing the New Anjar Facility II, which will increase our capacity from 3,000 MT to 15,000 MT, bringing our total capacity to 1,12,500 MT. This new facility will reduce logistics costs, enhance production efficiency, and lower manpower expenses. Additionally, the New Anjar Facility II will be dedicated to fulfilling orders from the Oil and Gas Sector, allowing the Palwal Facility to focus on catering to the Power Sector with the added benefit of reduced logistics overheads due to its close proximity to the Kandla Port in Gujarat. Our strategy is to leverage the upswing in capital expenditure in the Power and Oil & Gas Industry, preemptively establishing infrastructure and operational capabilities to meet the growing demand from our core sectors.”

 

 

•         Total income:

 

•         Total income at Rs 1.88 billion for Q1 FY25, registering a growth of 18.0% YoY

 

•         EBITDA:

 

•         EBITDA at Rs 279.9 million in Q1 FY25, up 72.9% YoY. EBITDA Margin was at 14.9%, up by 472 basis points YoY

 

•         PAT:

 

•         PAT at Rs 31.9 million  in Q1 FY25 against Q1 FY24 PAT of Rs (458) . PAT Margin was at 1.7%

•         Diluted EPS stood at Rs 0.60 as against Rs (0.86) in Q1 FY24

 

•         Net debt: 

 

•         Net Debt stood at Rs 884 million  as against Rs 4.25 billion  in FY24

•         Net Debt/EBITDA improved further to 0.79 in Q1 FY25 from 3.53 in FY24.

 

•         Order book update: 

 

•         The total order book as of June 30 2024, stands at Rs 8.03 billion. Apart from this the company has recently secured an international contract, valued at approximately Rs 3.4 billion. This project involves the fabrication of pipe spools under a Blanket Price Agreement from September 2024 to December 2026, highlighting DDEL's expertise in delivering high-quality piping solutions globally.