LCC Projects Ltd (LCCPROJECT) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, you have been connected for LCC Projects Limited conference call. The call will begin shortly. Request you to please stay connected. Reminder to all the participants that the call will begin shortly. Request you to please stay connected. Thank you.
Moderator: Ladies and gentlemen, good day and welcome to LCC Projects Limited Q2 & H1 FY '27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Before we begin, a brief disclaimer: the presentation which LCC Projects Limited has uploaded on the stock exchange and their website, including the discussions during the call, contains or may contain certain forward-looking statements concerning LCC Projects Limited business perspective and profitability, which are subject to several risks and uncertainties, that our actual results could materially differ from those in such forward-looking statements. Should you need assistance during the conference call, please signal an operator by pressing "*" then "0" on your touch-tone phone. I now hand the conference over to Mr. Arjan Sujarabhai, CMD from LCC. Thank you and over to you, sir.
Arjan Sujarabhai (LCC Projects Ltd): [laughter] Good afternoon, everyone, and thank you for joining us for the call today. On behalf of LCC Projects Limited, I extend a warm, warm welcome to all participants for our Q2 and H1 financial year 26-27 earnings conference call. This quarter marks our first full earnings call since our successful IPO, and I would like to extend a special welcome to our new shareholders who have joined us on this journey. I trust you will all have had the opportunity to review our earnings presentation and press release available on stock exchange and our corporate websites. For the benefit of our new investors and analysts, let me begin with a brief overview of LCC Projects Limited. LCC Projects Limited is a multidisciplinary EPC company, specializing in complex irrigation and water supply infrastructure projects. Since our inception in 2004, we have built a strong execution track record, successfully comp- completing more than 80 projects across 12 states over the last two decades. We focused on executing complex and technically challenging projects and have established a strong track record in project management, execution excellence, and timely completion of irrigation and water supply projects across India, with most projects being delivered ahead or in line with the scheduled time limits. Today, we are among the few large organized EPC players in Gujarat with significant in-house engineering capability, supported by a team of over 700 design and technical professionals. Our engineering and design function leverages advanced technology such as SCADA, WaterGEMS, Water Hammer, and STAAD Pro for design, planning, engineering analysis, database management, and topographical mapping, enabling us to deliver efficient and optimized project solutions. This strong technical foundation coupled with our deep domain expertise and execution capabilities allow us to undertake complex infrastructure projects and consistently deliver quality and outcomes for our clients across the India. As of September 30, 2026, our order book stood at 8,154 crores, reflecting the strength of our project pipeline and providing strong revenue visibility for the coming year. As a result, we established ourselves as a trust partner in the country's irrigation and water infrastructure development sector. Now coming to the operational highlights for the H1 financial year 26-27. First, order book. Our order book remained a robust at 8,154 crore as of September 30, 2026, compared to 7,953 crores as of March 31st, 2026, providing strong revenue visibility as the growth momentum. During the H1 FY '27, we secured new order worth 1,641 crores.
Arjan Sujarabhai (LCC Projects Ltd): reflecting our continuous success in winning quality projects across our focus segments. In addition, we are currently L1 in projects aggregating Rs. 1,583 crores which augments our opportunity pipeline and provides further visibility on future order inflows. Our order book to revenue ratio stands 2.21x based on FY '26 revenues, translating into the more than two years of revenue visibility, our underscoring the strength of our business fundamentals. Execution momentum remains strong across our project portfolio. We have currently executing several landmark projects including Sondwa Lift Irrigation valued at 1,395 crores, Seetaram Sagar Project, Madhya Pradesh, valued near about 1,400 crore, Gandhisagar project valued near about 1,049 crore and Bisampur mining project Chhattisgarh crossing the line with our execution plans. The combination of healthy order book, strong execution capability and a robust L1 pipeline positions us well sustained our growth trajectory and capability of our emerging opportunities in the infrastructure sector. Now, I am talking of about on our sector. The opportunity in water infrastructure remain massive. The government continuing thrust on Jal Jeevan Mission, Har Ghar Jal Nal, state irrigation scheme, the tender pipeline is very strong, also river inter-river linking projects. We are increasingly witnessing projects with higher technical qualification requirements which create opportunity for technically strong and established players such as LCC. We are also seeing a lot of new opportunity in the water infrastructure segment, particularly river linking, data center and nuclear power. It is further our unutilized non-fund-based limits in excess of 35% provide sufficient headroom for the pursue large and more complex projects. Now I will hand over to our Managing Director, Mr. Laljibhai Ahir, to walk you through financially in details.
Laljibhai Ahir (LCC Projects Ltd): Thank you, CMD, sir, and good afternoon, everyone. I will quickly take you through our financial performance. First, consolidated Q2 FY '27 year-on-year performance. Revenue from operations was 886 886 crores in Q2 financial year '26 versus 661 crore in Q2 financial year '26, a growth of 34% year-on-year. EBITDA for Q2 was 137 crore versus 94 crore last year, growth of 46% year-on-year. EBITDA margin expanded to our 15.5% versus 14.2%. PAT was 77 crore versus 49 crore, growth of 58% year-on-year. PAT margin improved to 8.6% versus 7.3%. Now consolidated half-yearly financial year '27 year-on-year performance. H1 financial year '27 revenue was 100 1,688 crore, EBITDA stood at 256 crore with margin expanding to 15.2% versus 13.8% in half-yearly '26. PAT was 150 143 crores with a margin improving to 8.5 4% versus 7.8% in half-yearly '26. If you see financial year '24 to '26, our revenue CAGR is 21%. EBITDA margin has moved from 10.9% to 13.4% and now is 15.2% in half-yearly '27. And on balance sheet and return ratio, this quarter, we completed our IPO and raised at 258 crores for our fresh issue,
Laljibhai Ahir (LCC Projects Ltd): net worth increased to 1,276 crores as on 30th September 26 from 893 crores in March 26. Our debt to equity has improved 0.70x from 0.97x. Total debt is 885 crores. Our cash and bank balance is strong at 535 crores. Annualized ROC is 23.8% 23.8% and ROE is 23.9%. Working capital days stood at 123 days as compared to 99 days. Trade receivable increased to 674 crores from 456 crores primarily on account of milestone-based billing towards to the end of the quarter. We expect significant realizations in quarter three. We accept maintain net working capital days in the range of 90 to 100 days. With this we can now open the floor for question and answers.
Moderator: Thank you so much sir. Ladies and gentlemen we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen we will wait for a moment while the question queue assembles. First question comes from the line of Raj Shah an individual investor. Please go ahead.
Raj Shah: Sir congratulations on listing and a great set of numbers. So, first question is predominantly on the strategy, business strategy of the company. Do you all focus intend to focus continue to focus on water irrigation projects or these other projects also is something which is a focus area and trying to increase the percentage there of?
Arjan Sujarabhai (LCC Projects Ltd): Thank you very much. Hamara jo core sector hai, woh water sector hai. 80% jo hamara revenue hai water sector se hai, 20% revenue jo hai, woh other sector like metro, mining, railway and solar. Aage bhi hamara jo focus hai woh water sector mein hi rahega. 80% lagbhag hum hamara focus water sector mein hi rakhenge. Remain 20% hai woh other sectors mein hum log maintain karenge.
Raj Shah: Okay. Because yeh quarter mein sir we have seen that it is gone up to 30 odd percent the other projects. So, us hisab se the question from that perspective because aapka order book is still more focused on irrigation and water supply. So broadly we want to still continue on irrigation and water supply project.
Arjan Sujarabhai (LCC Projects Ltd): Correct. Lekin iss quarter mein irrigation aur water supply mein barish ki wajah se kam kam hota hai isiliye aapko isme jyada dikh raha hoga. Otherwise hamara focus hai wahi water sector rahega.
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