Published on 29/09/2020 2:11:59 PM | Source: Ventura Securities Ltd

IPO Note - Likhitha Infrastructure Ltd By Ventura Securities

Posted in IPO Reports| #Ventura Securities Ltd #IPO

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Likhitha Infrastructure Ltd, incorporated in 1998, is an oil & gas pipeline infrastructure service provider in India, focused on laying pipeline networks along with the construction of associated facilities. The company also provides Operations & Maintenance (O&M) services to the City Gas Distribution (CGD) Companies in the county. In the last 5 years, the company has laid over 600 km of oil and gas pipelines including steel and Medium-Density Polyethylene (MDPE) networks. The company has its presence in over 16 states and 2 Union Territories.

During FY18-20, Likhitha Infrastructure’s overall revenue grew at a CAGR of 36.1% to Rs.161 cr in FY20. During the same period, the EBITDA grew at a CAGR of 63.0% to Rs.30 cr in FY20 whereas net profit grew at a CAGR of 66.7% to Rs.20 cr in FY20.

Key Investment Highlights:

* Further growth from its O&M services operations. The demand for O&M services is expected to increase owing to the significant increase in pipeline projects in India and the aging of existing pipeline projects. The revenue from this segment has increased at a CAGR of 130.8% during FY 18-20 and the company expects the segment to grow further, going ahead, as well.

* Focus on expanding operations. The company intends to strengthen its presence all over the country and play a bigger role in the CGD system as the Government is focusing to substantially increase the CGD network and also to become a prominent player in O&M operations of the CGD network.

* The company has over 20 years of experience in oil and gas pipeline infrastructure and it is one of the few oil and gas pipeline infrastructure companies, having a good track record of timely delivery of supply chain in all the business areas.


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