Technocraft Ventures Limited

The TOI grew by 23.58% to Rs. 279.56 crore in FY25 as against Rs. 226.22 crore in FY24, primarily driven by better execution of orders. Owing to improved TOI as well as reduced material costs, the PBILDT margin has improved and stood comfortable at 17.98% as against 14.91% in FY24. Consequently, PAT margin has improved and remained at 10.09% in FY25 as against 8.56% in FY24. Reputed clientele base TVL has a track record of over two decades in the construction business, and the promoters also hav

TVL has a track record of over two decades in the construction business, and the promoters also have experience of over two decades in the same sector. This coupled with its technical competence and cost competitiveness has enabled the company to build strong relationships with government entities, which has helped TVL obtain orders through tenders and receive payments within the stipulated period. Established track record of the promoters

The company is promoted by Sanjay Tyagi who is a civil engineer by profession and has more than 2 decades of experience in construction industry. He is supported by his son, Kartikey Tyagi in the overall operations of the company. The company has a team of more than 50 people comprising of Engineers, technicians, management staff and workers deployed across different project locations. Liquidity: Stretched The liquidity remained stretched as indicated by elongated working capital cycle of 189 da

The liquidity remained stretched as indicated by elongated working capital cycle of 189 days in FY25 (P.Y.: 171 days) due to elongated inventory period. Further, cash and bank balance remained low at Rs. 1.05 crore as on March 31, 2025. However, the company reported positive cash flow from operations (CFO) of Rs. 21.23 crore during FY25 improved from negative CFO of Rs. 37.23 during FY24. Further, TVL has sufficient GCA cushion to meet its debt repayment obligations.

Environment, social, and governance (ESG) risks: Not Applicable Applicable criteria Policy on Withdrawal of Ratings CARE Ratings’ Policy on Default Recognition Criteria on Assigning ‘Outlook’ or ‘Rating Watch’ to Credit Ratings Financial Ratios – Non-Financial Sector CARE Ratings’ Criteria on Rating of Short Term Instruments

Total operating income 226.22 279.56 267.82 PBILDT* 33.72 50.26 - PAT 19.37 28.20 - Overall gearing (times) 1.22 0.91 - Interest coverage (times) 4.24 4.25 - A: Audited UA: Unaudited; Note: ‘these are latest available financial results’ *PBILDT: Profit before interest, lease rentals, depreciation and tax

TVL has unexecuted order book of Rs. 685.80 crore as of June 30, 2025, representing 2.45x of TOI of FY25 (refers to April 01 to March 31). However, the order book is geographically concentrated with majority of the orders from Uttar Pradesh and Rajasthan. Company’s ability to timely execute its orders in hand along with timely receipts of the funds of billed amount will remain a key monitorable. Average Financial risk profile

TVL’s capital structure has improved due to healthy accretion of profits to reserves and stood comfortable, as marked by an overall gearing of 0.91x as on March 31, 2025 (1.22x as on March 31, 2024). Further, due to improved profitability in absolut e terms, debt coverage indicators have marginally improved and stood moderate as marked by PBILDT interest coverage of 4.25x in FY25 (3.47x in FY24) and total debt to GCA (TD/GCA) of 3.65 years as on March 31, 2025 (5.60 years as on March 31, 2024).

Operation of entities in construction sector are working capital intensive in nature due to milestone -based payments, defect liability period, contractual performance terms and project specific challenges. During FY25, working capital cycle of TVL elongated to 189 days (PY: 170 days). The collection period stood on higher side at 102 days (PY: 12 0 days). Competitive and tender based nature of industry Though the demand prospects in water and wastewater treatment market are favourable given Gov

Though the demand prospects in water and wastewater treatment market are favourable given Government of India’s initiatives like AMRUT and Jal Jeevan Mission and funding support from international agencies for facilitating investment in municipal infrastructure, the company remains exposed to the competitive pressure from other established players. Furthermore, the construction industry is fragmented with large number of small and medium scale players. Absence of price escalation contract

TVL has a track record of over two decades in the construction business, and the promoters also have experience of over two decades in the same sector. This coupled with its technical competence and cost competitiveness has enabled the company to build strong relationships with government entities, which has helped TVL obtain orders through tenders and receive payments within the stipulated period. Established track record of the promoters

The company is promoted by Sanjay Tyagi who is a civil engineer by profession and has more than 2 decades of experience in construction industry. He is supported by his son, Kartikey Tyagi in the overall operations of the company. The company has a team of more than 50 people comprising of Engineers, technicians, management staff and workers deployed across different project locations.