Enviro Infra Engineers Limited is an Indian company that specializes in the design, construction, operation, and maintenance of water and wastewater treatment plants (WWTPs) and water supply schemes (WSSPs) for government authorities.
Here is the key information about the company:
The company focuses on government projects for WWTPs and WSSPs, executing them using EPC (Engineering, Procurement, and Construction) or HAM (Hybrid Annuity Model) models.
Their projects include sewage treatment plants (STPs), sewerage schemes, common effluent treatment plants (CETPs), and water treatment plants (WTPs), often incorporating zero liquid discharge (ZLD) technology.
Financials
Enviro Infra has seen consistent financial growth in recent years, with revenue from operations increasing at a compound annual growth rate (CAGR) of 80.58% from Fiscal Year 2022 to 2024.
FY2022 Revenue: â‚ą 22,352.51 lakhs
FY2024 Revenue: â‚ą 72,891.50 lakhs
Profit for the same period has also grown significantly, with a CAGR of 78.87%.
FY2022 Profit: â‚ą 3,455.03 lakhs
FY2024 Profit: â‚ą 11,054.41 lakhs
As of June 30, 2024, the company’s debt-to-equity ratio stood at 0.95.
Growth Strategies
Government Support: The company benefits from several government initiatives aimed at improving water and wastewater management in India, including the Jal Jeevan Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and the National Mission for Clean Ganga.
Expanding Project Portfolio: Enviro Infra is actively expanding the number and capacity of projects they undertake. They are also looking to increase their pre-qualification status to bid on larger projects.
Geographical Expansion: While currently operating in eight states, the company plans to extend its reach to new geographies across India.
New Initiatives: Enviro Infra is exploring “Waste to Energy” projects as part of their future plans.
Customer Base
Enviro Infra’s primary customers are government authorities and urban local bodies (ULBs)
The company derives almost all of its revenue from government clients.
Government initiatives:
Jal Jeevan Mission (JJM): This scheme aims to provide safe and adequate drinking water to all rural households in India through individual household tap connections by 2024. The company is already executing 5 projects under the JJM.
Atal Mission for Rejuvenation and Urban Transformation (AMRUT): AMRUT focuses on improving basic urban infrastructure, including water supply, sewerage, and drainage systems. As of June 30, 2024, the company was executing 5 projects under AMRUT.
National Mission for Clean Ganga (NMCG): This mission aims to rejuvenate the Ganga river and its tributaries by addressing pollution and improving water quality. The company is executing one project under NMCG and two projects under the Namami Gange Programme.
National River Conservation Plan (NRCP): NRCP is a centrally sponsored scheme that provides financial and technical assistance to state governments for the abatement of pollution in identified stretches of various rivers.
National Plan for Conservation of Aquatic Eco-systems (NPCA): This program focuses on the conservation and management of lakes and wetlands.
Swarnim Jayanti Mukhya Mantri Shaheri Vikas Yojana (SJMMSVY): This scheme is specific to the state of Gujarat and focuses on urban development, including infrastructure improvements. As Enviro Infra operates in Gujarat, this scheme could provide potential project opportunities for the company.
Waste to Energy Programme: This program promotes the generation of energy from waste, including biogas production from wastewater.Enviro Infra is exploring the integration of biogas plants into their sewage treatment projects.
Sustainable Alternative Towards Affordable Transportation (SATAT) program: This initiative encourages the production of Compressed Bio Gas (CBG) from various waste sources.It provides financial and technical assistance, making it attractive for Enviro Infra to incorporate CBG plants into their projects, as they are planning to do in Jodhpur and Jaipur.
Future Outlook
Enviro Infra is well-positioned to capitalize on the growing demand for water and wastewater treatment solutions in India. The company’s strong financial performance, experienced management team, and government support provide a solid foundation for continued growth.
Risks
Investing in Enviro Infra Engineers Limited carries significant risks due to its heavy reliance on government contracts, which exposes the company to policy changes and funding uncertainties.
Project execution challenges, including potential cost overruns and disputes, could also impact profitability.
Disclaimer: Invested after IPO and biased.