ITD Cementation Ltd now become part of the Adani Group

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This is my first thread on the Forum. I would appreciate the feedback of senior people and would also invite fellow members to research more on this company.

:blue_book: ITD Cementation India Ltd – A Deep Dive into Its 90-Year Legacy and New Chapter with Adani Group

Company Name: ITD Cementation India Limited

Ticker: ITDCEM (NSE) | 509496 (BSE)

Current Promoter: Adani Group (via Renew Exim DMCC)

Market Cap: ~₹11,400 Cr (as of June 2024)

Industry: Infrastructure & Civil Construction

Listed Since: 1990s

Website: www.itdcem.co.in

:building_construction: Legacy and Historical Timeline

  • 1931: Originated as the Indian branch of The Cementation Company Ltd, UK, known for high-pressure grouting and foundation engineering.

  • 1978: Incorporated in India as Cemindia Company Ltd.

  • 1994–2005: Went through multiple name changes reflecting its foreign ownership:

    • Trafalgar House Construction India Ltd (1994)
    • Kvaerner Cementation India Ltd (1998)
    • Skanska Cementation India Ltd (2001)

  • 2005: Acquired by Italian-Thai Development PCL (ITD PCL), Thailand’s largest civil contractor; renamed ITD Cementation India Ltd.

:wrench: Core Competencies

ITD Cementation is a pioneer in EPC (Engineering, Procurement & Construction) with 90+ years of experience across:

  1. Maritime Structures
  • JNPT Phase II, Karwar Naval Base, Mazagon Dock
  1. Urban Mass Transit (Metro)
  • Delhi Metro (CC26 – TBM record), Kolkata Metro (Hooghly River tunnel), Mumbai, Nagpur & Jaipur Metro
  1. Airports
  • Terminal expansions at Delhi & Hyderabad Airports
  1. Roads, Highways & Bridges
  • NH projects in Maharashtra, Tamil Nadu, Andhra Pradesh
  1. Hydro & Irrigation
  • Saurashtra Canal, New Umtru Hydroelectric Project
  1. Industrial & Specialist Engineering
  • Refineries (IOCL Paradip), NTPC, BS-VI upgrades, IIT Ropar Campus

:office_worker: Leadership Timeline

Year Leadership Milestone
2000 Mr. Sunil Singh (MD till 2009) – Steered early metro & marine projects
2015 Mr. Piyachai Karnasuta joins Board (EVP, ITD PCL)
2019 Mr. Jayanta Basu appointed as MD (joined as GET in 1986)
2019 Mr. Santi Jongkongka appointed Executive Vice Chairman
2025 Adani Group gains majority control; new board expected

:money_bag: Financials Snapshot (FY24)

  • Revenue: ₹9,097 Cr
  • PAT: ₹373 Cr
  • 5-Yr Profit CAGR: 38.3%
  • ROE: 22.4%
  • P/E Ratio: ~30.6×
  • Order Book: ₹47,051 Cr (diversified)

:counterclockwise_arrows_button: Adani Group Acquisition (2024–25)

  • Oct 2024: Renew Exim DMCC (Adani Group) signs SPA to acquire 46.64% from ITD PCL at ₹400/share (deal value: ₹3,204 Cr).
  • Dec 2024: Launches Open Offer @ ₹571.68/share for 26% additional stake.
  • April 2025: Successfully acquires 20.83% via open offer; total holding becomes 67.46%.
  • Jan 2025: CCI approval granted.
  • Result: Adani Group now holds controlling interest and becomes promoter.

:bullseye: Investment Rationale

  • Robust Order Book across metros, ports, tunnels, and bridges.
  • Transition to Adani Group could lead to better capital allocation, margin expansion, and order inflow from group infra projects.
  • Strong execution capabilities with proven track record in complex marine and tunneling infrastructure.

:warning: Risks & Monitorables

  • Transition of leadership under new promoter (Adani).
  • Execution risk due to size and technical complexity of ongoing projects.
  • Working capital intensity of infra business; debt levels need monitoring.
  • Any potential delisting (purely speculative at this point) if Adani increases stake further.

:pushpin: Conclusion

ITD Cementation India Ltd has transformed from a legacy civil engineering arm of a British company into one of India’s most trusted EPC players. With the Adani Group acquiring a 67.46% controlling stake, a new growth phase may begin—backed by strong parentage, financial bandwidth, and access to mega infrastructure projects.

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Strong Finish to FY25 | ITD Cementation India Limited Reports Stellar Growth and Project Momentum

ITD Cementation India Ltd continues to scale new heights with a strong financial and operational performance in FY25. We’re not just building infrastructure—we’re building the future of India and beyond.

Q4 FY25 Performance Highlights:
• Revenue: ₹2,480 crore (+10% YoY)
• EBITDA: ₹268 crore (+11% YoY)
• PAT: ₹114 crore (+27% YoY)
• New orders worth ₹804 crore secured this quarter

FY25 Full-Year Performance:
• Revenue: ₹9,097 crore (+18% YoY)
• EBITDA: ₹923 crore (+14% YoY)
• PAT: ₹373 crore (+36% YoY)
• Orders secured in FY25: ₹7,174 crore

Robust Order Book & Pipeline:
With a solid order book of ₹18,300 crore, ITD Cementation is executing high-impact infrastructure projects across India and neighboring regions.

Key Ongoing Projects:
• Marine Projects in Bangladesh and West Container Terminal, Colombo Port, Sri Lanka
• Greenfield Vadhvan Port, Dahanu (Maharashtra) – Near Shore Reclamation and Shore Protection
• Dahej LNG Terminal (Gujarat) – Third berth (Jetty)
• Residential Redevelopment, Kasturba Nagar, Delhi (Phase I & II)
• Multistoried Commercial Complex, Uttar Pradesh
• Underground Metro Tunnels in Chennai, Bengaluru, Mumbai, and Kolkata
• Six-laning of Roads in Uttar Pradesh
• Railway Tunnels in West Bengal and Sikkim
• Hydro-Mechanical Works for 500 MW Pumped Storage Project – Andhra Pradesh
• Micro-tunneling projects in Ahmedabad and water infrastructure in Karwar

Client Portfolio:
50% Government | 42% Private Sector | 8% PSUs

With a presence in 13 Indian states and 2 international markets, ITD Cementation is focused on timely project execution, innovation, and sustainable growth.

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:small_blue_diamond:1. Business Overview

ITD Cementation India Limited (ITDC) is a leading EPC (Engineering, Procurement, and Construction) player in India. With over 9 decades of experience, the company operates across a diversified portfolio including:

  • Maritime Structures (ports, jetties, breakwaters)
  • Urban Infrastructure (metros, airports, tunnels)
  • Hydro and Dams
  • Industrial Structures and Buildings
  • Transportation (railways, elevated roads)

Order Book & Revenue Mix (FY24):

  • Order Book: ₹20,385 crore as of March 31, 2024 (3.5x FY24 revenue)

  • Segment Mix:

    • Maritime: 37%
    • Urban Infra (metro/airport): 34%
    • Hydro/Dams: 12%
    • Others: 17%

  • Geographical Presence: Pan-India, with execution strength in 17 states and presence in 37 cities

Clients: Strong clientele includes DMRC, MMRDA, CIDCO, Ministry of Defence, NHAI, JNPT, NTPC, GAIL, L&T, etc.

:small_blue_diamond: 2. Navigating Risks

ITDC has taken a proactive approach to risk mitigation through the following strategies:

:hammer_and_wrench: Execution Risk

  • Built a dedicated EPC execution model with minimal subcontracting.
  • Operates with over 1,300 engineers and 11,000+ skilled/unskilled workers.
  • Focus on design-build projects allows full control from planning to completion.

:money_bag: Financial Risk

  • Maintains a lean working capital cycle (10-15%).
  • FY24 Debt: ₹347 crore → Net Debt-to-Equity: 0.21x (reduced YoY).
  • Focused on monetizing claims (~₹1,145 crore of awarded claims pending collection) to boost cash flows.

:gear: Raw Material & Cost Escalation

  • Projects structured with price variation clauses to mitigate commodity risk.
  • Extensive use of in-house equipment and batching plants improves control.

:construction_worker_man: Labor and Resource Risk

  • Employee retention, upskilling, and strong industrial relations reduce labor turnover risk.
  • Active supply chain management ensures material availability and cost control.

:globe_showing_europe_africa: ESG & Environmental Risk

  • Steps toward reducing GHG emissions and improving wastewater treatment, especially in tunneling and marine projects.

:small_blue_diamond:3. Strengths & Weaknesses

:white_check_mark: Strengths

  • Diversified Order Book: Balanced exposure to public infrastructure across sectors.
  • Execution Capability: Proven ability to handle complex marine and metro projects.
  • Debt-Light Balance Sheet: Net Debt/Equity at 0.21x offers headroom for growth.
  • Project Visibility: 3.5x order book coverage ensures revenue visibility for the next 3 years.
  • Technical Prowess: Pioneer in diaphragm walls, cut-and-cover tunnels, and deep foundation marine works.
  • Parentage: Backed by Italian-Thai Development Public Company Ltd., Thailand’s largest civil contractor.

:cross_mark: Weaknesses

  • Concentration Risk: 71% of order book from top 10 projects → high dependence.
  • Low Operating Margins: FY24 EBITDA margin at 9.9% vs 12–15% for best-in-class peers.
  • High Working Capital Intensity: Despite improvements, working capital days remain high (~126 days).
  • Limited International Exposure: Mostly India-focused, unlike some global peers.

:small_blue_diamond:4. Peer Comparison

Company FY24 Revenue (₹ Cr) EBITDA Margin Net Debt/Equity Order Book Coverage Segment Focus
ITD Cementation 5,842 9.9% 0.21x 3.5x Marine, Urban Infra
Ahluwalia Contracts 3,000+ 13-14% 0.0x 3x Buildings, Infra
PNC Infratech 7,000+ 15-16% 0.3x 2.5x Roads, Highways
KNR Constructions 4,000+ 18%+ 0.2x 2x Roads, HAM Projects
L&T Construction (Infra arm) ~60,000+ ~11-12% 0.5x+ 2.2x Diversified

Key Takeaway: While ITDC lags in margins compared to peers, it benefits from strong execution, balance sheet strength, and niche marine expertise.

:small_blue_diamond:5. Management Track Record

:man_office_worker: Leadership & Governance

  • CEO & MD: Mr. H. L. Ralhan – over 35 years in the industry.
  • Management focuses on execution quality, timely delivery, and financial prudence.
  • Maintains a transparent and conservative accounting policy (no aggressive revenue booking).

:chart_increasing: Track Record of Guidance

  • Revenue CAGR (FY20–24): ~15%
  • Consistently delivered order inflows > ₹7,000 crore/year in last 3 years.
  • Reduced debt steadily over FY22–FY24, indicating fiscal discipline.
  • Delivered on commitment to move into high-margin verticals like tunnels and deep underground metro stations.

:trophy: Awards & Recognition

  • Multiple national awards for quality, safety, and environmental standards.
  • Recognized by DMRC, CIDCO, and MoUD for on-time project delivery.

:small_blue_diamond:Conclusion

ITD Cementation has cemented (no pun intended) its place as a leading mid-sized infrastructure company with strong execution capabilities, especially in marine and metro infrastructure. The company’s balanced order book, technical expertise, and prudent financial management offer comfort. However, the business faces challenges in terms of margin improvement and order concentration, which it is actively addressing.

The management has broadly delivered on their promises over the past 3–4 years, and the company is well-positioned to capitalize on India’s infrastructure push, especially in maritime, metro, and tunneling projects.

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