Concord Enviro offers exposure to high potential water treatment sector
capital expenditure and to invest in overseas subsidiaries, and Rs 325 crore through an offer for sale by promoters and an investor.
The promoter group's stake will fall to 51.4% after the IPO from 60.9%. The company has international operations and operates in a high potential sector. However, it needs to show consistency in financial performance. Risk averse investors therefore need to wait for a sustainable trend in financials before making an investment decision.
Business
Established in 1999, Concord Enviro has inhouse capabilities including designing, manufacturing, installation, commissioning, operating and maintaining water treatment facilities. It also offers data capture solutions and analysis platforms enabling troubleshooting and preventive maintenance of installed systems. As of August 2024, it had 289 domestic and 21 international customers across North and Latin America, Africa, Middle East and South Asia. It has manufacturing facilities in Vasai, Maharashtra and Sharjah, UAE. In FY24, exports contributed over 41% to revenue. The top customer contributed 35.9% to revenue in FY24 reflecting high client concentration. The company had an order book of Rs 501.8 crore as of August 2024 compared with Rs463.2 crore as of March 2024.
Financials
The company earns over 60% of the annual revenue in the second half of a fiscal year, reflecting seasonality in business. The company’s financials over the past three years show an erratic trend. Revenue, for instance, moved to Rs 343.2 crore in FY23 from 329.4 crore in
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