More Stories

Informist, Tuesday, Mar. 11, 2025

 

By Rajesh Gajra

 

NEW DELHI – The standalone trade receivables of civil construction and engineering company Ceigall India Ltd. were INR 7.79 billion as of Dec. 31, a company official said in response to a query by Informist. This was 15% lower than the company's trade receivables of INR 9.02 billion at the end of September.

 

Ceigall India is largely engaged in bidding for and executing public-sector engineering, procurement, and construction contracts, including hybrid annuity model projects. The company has experience in constructing elevated roads, flyovers, bridges, railway overpasses, tunnels, highways, expressways, and runways.

 

When the company's trade receivables had jumped up to INR 9.02 billion at the end of September from INR 4.85 billion as on Mar. 31, the company's Chief Finance Officer Bhagat Singh had said in the post-September quarter earnings investor conference call that for the first two months of the quarter the execution of construction activity was slow, and the third month construction activity got billed in the last week of September. Singh had said that INR 2.80 billion of trade receivables as of Sep. 30 were received in October and the surge was a "momentary thing."

 

In the same investor call, Ceigall's Managing Director Ramneek Sehgal had said that payments from the execution of projects were typically received as per milestones such as 10%, 30%, 50%, and 70%. "Each layer we do it, we achieve the milestone and then we get the milestone payment," Sehgal had said.

 

According to an analyst with JM Financial, the company was targeting reduction of INR 3 billion-INR 4 billion in the December quarter. But with the trade receivables at INR 7.79 billion, the on-quarter decline was INR 1.23 billion for the company. The net working capital period increased to 66 days at the end of the December quarter from 61 a quarter ago. It was still lower at 38 days at the end of the June quarter.

 

The value of the outstanding order book of Ceigall declined to INR 117.02 billion as of Dec. 30 from INR 121.53 billion at the end of September. The outstanding order book value was INR 92.25 billion at the end of 2023-24 (Apr-Mar). Ceigall's consolidated revenue from operations for Apr-Dec was up 6% on year at INR 24.06 billion, while the profit after tax was up 9% on year at INR 2.14 billion. On a standalone basis, the company's revenue for Apr-Dec was up 15% on year at INR 23.73 billion and the profit after tax up by 5.5% at INR 2.01 billion.

 

On Tuesday, shares of Ceigall ended at INR 247.95 on the National Stock Exchange, down 2.4% from the previous close.  End

 

Edited by Ashish Shirke

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.