EMS Ltd: Concall Summary Feb'24

Executive Summary

EMS Ltd. has shown remarkable financial performance and sustained growth, underscoring its strong market position and strategic execution capabilities. This article delves into the company's revenue guidance, financial results, order book, and future outlook, highlighting the key data points and metrics that demonstrate its robust business fundamentals.

Financial Results and Revenue Guidance

FY24 Revenue Guidance

For the fiscal year 2024 (FY24), EMS Ltd. has projected an impressive revenue growth of 35% to 40%, reflecting the company's confidence in its ongoing projects and future prospects. This guidance is built on the back of a solid performance in the first nine months of the fiscal year.

Quarterly and Yearly Performance

Q4 FY24 Highlights

  • Sales Growth: The company reported a 29% year-over-year (YoY) increase in sales for the quarter ending March 2024, rising from INR 190 crore in March 2023 to INR 245 crore in March 2024.
  • Net Profit: Net profit also surged by 31% YoY, from INR 36 crore to INR 47 crore during the same period.

9M FY24 Performance

  • Revenue Increase: Income for the first nine months of FY24 saw a significant 54% increase compared to the previous year.
  • EBITDA Margin: The EBITDA margin for this period was approximately 30%, slightly down from 31.5% in the previous year.
  • PAT Margin: The Profit After Tax (PAT) margin stood at 21.5%, a slight decline from the 22% recorded last year.

Annual Financial Metrics

  • FY23 Performance: For the fiscal year 2023 (FY23), EMS Ltd. reported a 50% increase in revenue and a 38% rise in net profit compared to FY22. This robust performance highlights the company's effective operational strategies and market expansion efforts.

Order Book and Pipeline

Current Order Book

  • Unexecuted Order Book: As of the latest update, EMS Ltd.'s unexecuted order book is valued at approximately INR 1,835 crore. This strong backlog indicates a healthy pipeline of projects that will drive future revenue.

Recent Major Orders

  • Hathras Town Project: EMS Ltd. received a letter of award worth INR 119 crore for a project involving the design, build, operate, and transfer of interception and diversion works in Hathras Town, U.P., under the Namami Gange Program.
  • Dehradun Project: The company emerged as the lowest bidder (L1) for a project in Dehradun worth INR 148 crore, aimed at reducing infrastructure losses in the distribution sector.
  • Multi-Level Car Parking in Meerut: EMS Ltd. secured a project valued at INR 34.7 crore for constructing a multi-level car parking facility in Meerut, U.P.

Upcoming Bids and Potential Projects

  • Pipeline Bids: EMS Ltd. has bids worth approximately INR 4,000 crore in the pipeline. Additionally, the company is the lowest bidder for two significant projects, totaling INR 513 crore.

Future Outlook

FY25 Revenue Targets

  • Revenue Growth Projection: Looking ahead to FY25, EMS Ltd. aims to sustain its revenue growth trajectory of 35% to 40%, with a target of achieving INR 1,000 crore in revenue.
  • Strategic Focus: The company plans to maintain its focus on high-margin projects in the water sector, particularly in sewerage and wastewater treatment, to ensure sustainable profitability.

Sector and Project Focus

  • Water Sector Dominance: EMS Ltd. operates primarily in the water sector, with a focus on sewerage, water supply, and wastewater treatment projects. These projects are predominantly funded by government and international agencies.
  • Geographic Concentration: The company’s major projects are concentrated in urban areas, with significant operations in Rajasthan, Uttarakhand, Uttar Pradesh, Bihar, and Mumbai.

Investment and Stakeholders

  • Significant Stakeholders: Notable investors include Abakkus Diversified Alpha Fund, which holds a 3.5% stake in EMS Ltd. This indicates strong institutional confidence in the company’s growth prospects.


EMS Ltd. continues to demonstrate strong financial performance and robust growth, underpinned by a solid order book and strategic project execution. With its ambitious revenue targets and strategic focus on high-margin projects, EMS Ltd. is well-positioned for sustained growth and profitability in the coming years. This detailed analysis underscores the company's commitment to maintaining its