Globe Civil Projects Ltd Management Discussions

Globe Civil Projects Limited

1. Company Introduction

Globe Civil Projects Limited ("Globe Civil") is an integrated Engineering, Procurement, and Construction (epc) company headquartered in New Delhi. With more than two decades of experience, the Company has built a strong reputation for delivering large and complex infrastructure projects across India. Our operational footprint spans 11 states — Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh.

The Companys core focus areas include educational institutions, healthcare facilities, railway infrastructure, housing, and commercial offices. Over the years, we have successfully completed 37 projects and are currently executing 13 projects. Globe Civil is registered as a Class-1 Super Contractor with CPWD, authorized to tender for projects up to 56,500 million, valid till November 2027.

As of March 31, 2025, our Order Book stood at 56,691.02 million, providing strong visibility of future revenues. Notable completed and ongoing projects include AIIMS Raipur (Academic & Admin Block), NIT Narela Campus, IIT Gandhinagar Academic Block, IIT Roorkee Faculty Housing, Nagpur Railway Station upgrade, and Burari Hospital (Delhi).

2. Economic Overview Global Context

The global economy in 2024 remained under pressure from inflation, energy price volatility, and geopolitical uncertainties. Despite these challenges, infrastructure spending continued to be a priority worldwide, providing stability in construction and EPC sector. Governments globally are emphasizing capital investments in housing, transport, and healthcare.

Indian Economy

India continued to demonstrate resilience and remains among the fastest-growing economies, with GDP growth projected at ~6.5% in 2024. The Union Budget 2025-26 allocated 511.21 trillion for capital expenditure (10.12% increase over previous year), and additionally, 51.5 trillion in interest-free loans to states, to further stimulate infrastructure development. These measures are expected to encourage private sector participation and boost construction demand.

3. Industry structure and developments

• "The construction sector is among the largest contributors to Indias GVA, second only to agriculture."

• "The sector is expected to witness steady growth over the medium term, supported by government infrastructure spending and private investments."

• "Industry research indicates healthy growth potential for Indias construction sector during 2024-2028."

• The industry supports more than 71 million jobs, expected to cross 100 million by 2030.

Government Initiatives Driving Growth

The Indian construction sector continues to benefit from large-scale government initiatives aimed at strengthening infrastructure, enhancing connectivity, and promoting sustainable urban development. Key programmes include:

• National Infrastructure Pipeline (NIP): A 5111 lakh crore (5111 trillion) pipeline over FY 2020-25 covering transport, urban infrastructure, and energy projects.

• PM Gati Shakti: A 5100 lakh crore (5100 trillion) digital platform integrating 16 ministries for multimodal connectivity and coordinated infrastructure planning.

• Bharatmala Pariyojana: Flagship highway expansion programme. As of December 31, 2024, 26,425 km of projects had been awarded, and 19,201 km completed.

• Smart Cities Mission: A programme to promote digital infrastructure, sustainability, and better quality of urban life. By May 2025, 7,555 projects worth 51.51 lakh crore had been completed across 100 cities.

These initiatives collectively provide long-term growth opportunities for EPC companies like Globe Civil Projects Limited, ensuring a strong pipeline of projects in education, healthcare, housing, railways, and urban infrastructure.

Sector Opportunities for Globe Civil

• Educational Infrastructure: Rising demand for universities, technical institutes, and skill development centres provides long-term opportunities for EPC players.

• Healthcare Facilities: Post-pandemic policy focus on healthcare infrastructure continues, with significant allocations for new hospitals and medical colleges across India.

• Railways: With 52.52 trillion allocated in FY 2024-25 towards capital expenditure for Indian Railways, the sector remains a major opportunity for construction and EPC services.

• Urban Development: Programmes such as PM Awas Yojana (housing for all) and the Urban Infrastructure

Development Fund (UIDF) are driving investments in affordable housing and urban renewal, creating significant business potential.

4. Opportunities and Threats/SWOT Analysis

Strengths

• Strong project management and execution capabilities

Over two decades of successful project delivery, with 37 projects completed and 13 ongoing, including complex institutional projects such as AIIMS Raipur and NIT Narela Campus.

• Growing Order Book and higher pre-qualification credentials

Order book of 56,691.02 million as of March 31, 2025, diversified across education, healthcare, and railways, supported by strong pre-qualification credentials including CPWD Class-1 Super contractor status.

• Strong and consistent financial performance

Revenue grew from 52,857.09 million in FY 2022 to 53,321.62 million in FY 2024 (CAGR 7.8%), while profit before tax rose significantly to 5209.87 million, supported by a balanced capital structure.

• Experienced Promoters, Directors and management team

Promoters and Directors bring nearly two decades of industry experience, supported by skilled teams in engineering, design, and quality management, ensuring timely execution and governance discipline.

Weaknesses

• Regulatory Dependence: Project timelines may be impacted by delays in approvals and policy changes, which are inherent to the infrastructure sector.

• Input Cost Sensitivity: Rising raw material prices, particularly steel and cement, can affect margins, although mitigated through procurement planning and cost control measures.

• Working Capital Intensity: Execution of large government projects requires significant working capital, and payment cycles can create temporary strain on liquidity.

Opportunities

• Government Infrastructure Programmes: Large-scale initiatives such as the National Infrastructure Pipeline (nip), PM Gati Shakti, and the Smart Cities Mission are expected to generate sustained demand for EPC services.

• Urban & Regional Expansion: Rising investment in Tier-II and Tier-III cities provides opportunities for affordable housing, institutional, and civic infrastructure development.

• Healthcare & Education Infrastructure: Continued government and private sector focus on hospitals, medical colleges, universities, and skill development centres is driving demand for specialized construction.

Threats

• Competitive Intensity: Presence of large national EPC contractors and regional players creates pricing and margin pressure in bids.

• Macroeconomic Uncertainty: A global or domestic economic slowdown may impact infrastructure spending and delay project awards.

• Commodity Price Volatility: Fluctuations in prices of steel, cement, and other inputs can affect project costs and profitability.

5. Business Outlook

Globe Civil has consistently delivered quality projects across diverse sectors. Our diversified portfolio reduces

concentration risks and enhances revenue stability.

• Some of our recently completed key Projects are:

S.No. Name of Project	Estimated Cost (in 5 millions)
1. Construction of three railway bridges on stilts in the Coastal Regulation Zone	51,830 million
2. Academic and Admin Block at AIIMS, Raipur, Chhattisgarh	51,813.47 million
3. Academic Block at IIT Gandhinagar, Gujarat	51,433.59 million
4. Faculty Housing at IIT Roorkee, Uttarakhand	51,440 million

• Some of our key ongoing projects are:

S.No. Name of Project	Estimated Cost (in 5 millions)
1. Academic Block, Hostel Block, Residential Block and Directors Residence at NIT Narela	53,270 million
2. Academic Block, Hostel Block, Residential Block and Directors Residence at NIT Delhi Campus	51,603 million
3. Major Upgrade of railway station at, Nagpur	52,978 million

Rs

S.No. Name of Project	Estimated Cost (in 5 miMions)
4. Redevelopment of Housing Complex for Ministry of External Affairs (mea) at KG Marg, New Delhi	51988.89 million
5. Income Tax Office Building at Bengaluru, Karnataka	51,430 million
6. Redevelopment of Delhi Public School at Sector-30, Noida	5708.9 million
7. Redevelopment of Delhi Public School at Sector-19, Faridabad	5560 million
8. Indoor Sports Facility at Naurangi Lal Inter College, Aligarh	5479 million

• Some projects awarded in FY 2025-26 include:

S.No. Name of Project	Estimated Cost (in 5 millions)
1. Construction of Infrastrucure facilities and other related works/buildings in campus of Central University of Punjab, Bathinda	51,729.9 million
2. Construction of Kotak School of Sustainability at IIT Kanpur Campus	5617.8 million
3. Construction of Internation Cricket Stadium at Lohat, Jhajjar, Haryana	52221.97million

As of March 31, 2025, our Order Book was 56,691.02 million, comprising thirteen (13) ongoing projects consisting of five (5) Infrastructure- Social and Commercial projects, three (3) Infrastructure - Transport and Logistics projects, four (4) Non-infrastructure - Housing projects and one (1) Non-infrastructure - Commercial Office project. However, our Company has received letter of intent for two (2) projects, which have commenced.

Distribution of Ongoing Projects by Type (projects)

1 Nan-infrastructure - Commercial Office

4 Non-infrastructure - Housing

5 Infrastructure - Social and Commercial

6. Quality Control

The Company has established a robust quality management framework covering all phases of project execution. Key elements include:

• On-Site Quality Oversight: Deployment of dedicated Quality Managers at major project locations.

• Material Quality Assurance: Rigorous testing and inspection of key inputs such as cement, steel, and other critical materials.

• Process Control: Continuous monitoring during engineering, procurement, and construction stages to ensure compliance with design and safety standards.

• Regulatory & Client Compliance: Adherence to applicable building codes, statutory requirements, and client specifications.

Notable projects such as AIIMS Raipur and Burari Hospital demonstrate the Companys capability to deliver complex facilities within regulated environments, while maintaining high standards of safety, reliability, and technical performance.

7. Risks and Concerns

The EPC industry operates in a dynamic environment and is subject to certain risks which the Company actively monitors and manages. Key risks include:

• Execution Delays: Potential delays due to land acquisition challenges and regulatory clearances.

• Input Cost Volatility: Fluctuations in prices of steel, cement, and other critical materials impacting margins.

• Client Concentration: Significant exposure to government clients, though supported by strong order visibility and continued public investment in infrastructure.

• Working Capital Requirements: Delays in payments from government agencies may sometimes create temporary strain on liquidity. However, till now there has been no significant delays in payments.

• Competitive Intensity: Presence of large national EPC players as well as regional contractors creates margin pressure.

Mitigation Measures: The Company addresses these challenges through a diversified project portfolio, emphasis on timely execution, strategic joint ventures for large contracts, and prudent financial management.

These risks are continuously reviewed at the management level and by the Board to ensure robust governance and proactive mitigation.

8. Strategy Outlook

Our strategy is built around six pillars:

1. Securing Government Infrastructure Projects

The Company continues to focus on government-led infrastructure opportunities, particularly in the construction of educational institutions, hospitals, and railway infrastructure. Large-scale initiatives such as the National Infrastructure Pipeline (NIP), National Monetisation Pipeline (NMP), and PM Gati Shakti are expected to drive

demand for EPC services. As of March 31, 2025, government contracts accounted for approximately 65% of the Companys order book. This focus, combined with diversification into specialized projects such as airports, bridges, and commercial facilities, positions the Company to benefit from long-term sector growth.

2. Expanding Geographical Footprint

Headquartered in New Delhi, the Company has successfully expanded operations across 11 states including Uttar Pradesh, Haryana, Maharashtra, Karnataka, Gujarat, and Rajasthan. Going forward, the Company intends to consolidate its presence in existing markets while exploring opportunities in new geographies such as West Bengal and Odisha, supported by strong client relationships and proven execution capabilities.

3. Enhancing Pre-qualification and Bidding Capacity

The Company is accredited as a CPWD Class-I Super Contractor, enabling participation in projects up to ?6,500 million. Continuous enhancement of bid capacity and technical credentials will allow the Company to access larger and more complex projects. Where required, project-specific joint ventures will be pursued to strengthen financial and technical qualifications.

4. Strengthening Execution and Quality

Timely project delivery and adherence to quality standards remain central to the Companys growth strategy. Investments in modern equipment, project management tools (including ERP platforms), and skilled manpower will continue to drive execution efficiency. Emphasis on health, safety, and environmental management will reinforce the Companys reputation as a reliable EPC partner.

5. Pursuing Strategic Alliances

The Company seeks to deepen its long-standing relationships with clients and partners by entering into strategic alliances and joint ventures. As of March 31, 2025, six joint ventures have been established to pursue opportunities in new markets and specialized projects. Such collaborations enhance technical capabilities, expand reach, and mitigate project risks.

6. Diversifying Revenue Base

The Company derives revenue primarily from construction project receipts (97%), with the balance from trading activities. Within EPC, the portfolio spans transport and logistics (roads, bridges, terminals), social and commercial infrastructure (education, healthcare, sports), and non-infrastructure projects (commercial offices, housing). Continued diversification across sectors and geographies will reduce concentration risks and broaden growth opportunities.

9. Internal control systems and their adequacy

Globe Civil has robust internal control mechanisms including:

• ERP-based financial and operational monitoring.

• Periodic internal audits reviewed by the Audit Committee.

• Annual budgeting with monthly performance reviews.

• Strict compliance with applicable laws and regulations.

10. Discussion on financial performance with respect to operational performance

Over the last three fiscal years, the Company has demonstrated steady revenue growth with significant profitability improvement:

The summarized standalone and Consolidated statements of your Company are given in the table below:

(All Amounts are in Million unless otherwise stated)

Particulars	Standalone		Consolidated
	2024-25	2023-24	2024-25	2023-24
Revenue from operations	3259.92	2949.05	3785.76	3321.62
Other Income	28.43	21.59	29.92	26.52
Total revenue	3288.35	2970.64	3815.68	3348.14
Profit before tax	332.37	206.69	332.44	209.89
Total Tax Expense	91.86	52.90	91.93	56.10
Net profit after tax for the year	240.51	153.79	240.51	153.79
Other Comprehensive Income	0.91	(1.50)	0.91	(1.50)
Total Other Comprehensive Income	241.42	152.29	241.42	152.29
Earning per equity shares (Basic & Diluted)	5.52	3.58	5.52	3.58

FINANCIAL PERFORMANCE OVERVIEW (STANDALONE BASIS)

The brief highlights of the Companys performance (standalone) during the financial year 2024-25:

• Total revenue from operations increased to 5 3288.35 Millions as against 5 2970.64 Millions in the previous year-an increase of 10.69%.

• Profit before Tax (pbt) for the current year are 5 332.37 Millions and 5 206.69 Millions in the previous year - an increase of 60.81%.

• Profit after Tax (pat) for the current year are 5 240.51Millions and 5 153.79 Millions in the previous year - an increase of 56.39%

• Earnings per share is 5 5.52 for the year under review.

KEY OPERATING RATIOS

RATIO	FY 2024-25	FY 2023-24	Reasons for change in ratio by more than 25% as compared to the previous year
Trade Receivable Turnover	2.73	3.71	Due to increase in sales and Trade Receivables
Inventory Turnover (times)	2.45	2.69	EPC Projects generally requires more inventories
Interest Coverage Ratio	2.72	1.93	Due to improvement in Operating profit
Operating profit margin (%)	16.11	14.54	Due to Operational efficiencies and better cost control
Net profit margin (%)	7.38	4.63	Due to increase in profitability
Return on Net worth (%)	22.63	19.80	Due to increase in profitability
Current Ratio (times)	1.43	1.32	Due to better management of Working Capital
Debt Equity Ratio (times)	1.61	1.78	Due to increase in reserves

This consistent performance provides the foundation for undertaking larger projects and sustaining growth momentum

11. Material developments in Human Resources / Industrial Relations front,including number of people employed

Globe Civil is committed to being an equal opportunity employer and fostering a culture of inclusivity, safety, and continuous learning. The Company places strong emphasis on building a skilled and diverse workforce that can support long-term growth.

Our HR policies are designed to attract, retain, and develop talent through:

• Skill Development and Training: Regular onsite and technical training programmes to enhance execution capabilities and strengthen project management skills.

• Health, Safety, and Well-being: Structured initiatives to promote workplace safety, occupational health, and employee welfare across all project sites.

• Leadership Development: Focused efforts to nurture leadership and technical talent aligned with the Companys future growth plans.

The management recognizes that people are its most valuable asset and continues to invest in human capital to ensure high standards of performance, engagement, and retention across all levels of the organization.

12. Segment-wise or Product wise performance

Since Company is in Construction/ EPC business so there is no specific segment or Product.

13. Statutory Compliances

Globe Civil Projects Limited is compliant with applicable corporate, tax, labor, and regulatory requirements. Internal audits and management reviews ensure adherence to changing regulations. Compliance systems are periodically updated in line with industry standards.

14. Caution Statement

This Report contains forward-looking statements, based on certain assumptions and expectations of the Company. Actual performance may differ materially due to risks and uncertainties including changes in economic conditions, government policies, commodity prices, competition, and regulatory shifts. The Company assumes no responsibility for any changes in these statements arising from future events or developments.