| Company | Sathlokhar Synergys E&C Global Ltd |
|---|---|
| Sector | Construction |
| Current Promoter Holding | 68.43% |
| Market Cap | 1118 Cr. (approx.) |
| FY23 PAT | 5 Cr. |
| FY24 PAT | 26 Cr. |
| H1 FY25 PAT | INR 16 Cr. |
| P/E Ratio | 43x |
| Debt/Equity | 0 |
About the Company
Sathlokhar Synergys provides comprehensive construction services for industrial, warehousing, commercial, institutional, pharmaceutical, solar projects, hospitals, hotels, resorts, and villas. The company specializes in the installation of mechanical, electrical, and plumbing (MEP) networks and boasts in-house capabilities to handle projects from conceptualization to completion with a faster turnaround time. Its expertise spans the entire value chain, including detailed designing, planning, procurement, project engineering, execution, management, and commissioning. Additionally, the company undertakes EPC projects for government agencies through competitive bidding processes. Sathlokhar Synergys is an authorized dealer of TATA Power Solar Systems Ltd., providing installation, sales, commissioning, and maintenance services for its solar projects. The company has successfully completed projects across Tamil Nadu, Karnataka, Uttar Pradesh, and West Bengal. Some notable projects are the factory buildings constructed in collaboration with Reliance Campa Cola. Additionally, the company delivered a state-of-the-art factory building for Muthiah Beverage and Confectionery Pvt. Ltd., a Sri Lanka-based joint venture with Reliance Campa Cola, covering an expansive 20,127.12 square meters in Karnataka.
Future outlook of the company:
1. Company is committed to achieve a minimum growth of 50% over last year’s revenue and is guiding a minimum growth of 40% in FY26 and with aspirations to reach INR 1,000 Cr in revenue by FY27.
2. As of the first half of FY 25, the company boasts a robust order book valued at 761.06 crores, with 141.37 crores secured through September of the same year. This puts the company on track to achieve an additional 260.63 crores in the second half of the fiscal year, targeting a total of 402 crores in order book growth for FY 24-25.
3. Sathlokhar reported exceptional growth in key financial metrics for H1 FY 25. Its revenue surged by 205.99%, from 46.57 Crore to INR 142.50 Crore and PAT grew by 324.31%, from INR 3.87 Crore to INR 1,6.44 Crore, strengthening the PAT margin to 11.54%.
4. Company is positioned as an authorized channel partner for Tata Power Solar Systems Ltd., enhancing its competitive edge in sustainable energy solutions and is exploring joint ventures in MEP (Mechanical, Electrical, Plumbing) and interior projects to capture more market share.
Management Profiles of Sathlokar Synergies Ltd.
Mr G Thiyagu (Chairman, Managing Director & CEO )
Mr. G. Thiyagu holds a Diploma in Electrical and Electronics Engineering, a Diploma in Industrial Safety, a Master’s in Public Administration, an MBA, and a Ph.D. in Business Management. He has over 25 years of experience in the real estate industry, Mr. Thiyagu has demonstrated expertise across various facets of the field. He was honored with the Mahatma Gandhi Samman Award by the NRI Welfare Society of India in 2018. He is serving as the Chairman, Managing Director, and CEO since January 2024 at Sathlokar, Mr. Thiyagu oversees business operations, ensures timely project completion, upholds financial integrity, and ensures regulatory compliance.
Mr G Thiyagu (COO and whole Time Director )
Ms. Sangeethaa Thiyagu, aged 45 years, is the Promoter, Whole Time Director and Chief Operating Officer (COO) of our Company. She holds Degree of Bachelor of Engineering from Bharathidasan University. She has been associated with our company since its incorporation i.e., from the year 2013. She has over 21 years of experience in Project Management and in construction industry. Her role is to design and implement business strategies, plans and procedure and contribute to overall growth and expansion of the company.
Mr. B Sivasubramanian (CTO and whole Time Director)
Mr. B Sivasubramanian, aged 57 years, is the Whole Time Director and Chief Technical Officer (CTO) of our Company. He holds a Post Graduate Diploma in Construction Management from National Institute of Construction Management and Research, Pune. Maharashtra. He has over 35 years of experience in the civil industry. He has been associated with our company since October 2017. His role in the company is to operate day to day affairs of the company to ensure a smooth process. Additionally, reviewing progress, safety, and quality at construction sites with clients and coordinators is crucial for timely project completion and budget adherence.
Sathlokar Synergies Ltd. is a leading integrated Engineering, Procurement, and Construction (EPC) company specializing in design and build turnkey contracting services. The company focuses on constructing buildings and infrastructure facilities for a wide range of sectors, including industrial, warehousing, commercial, institutional, pharmaceutical, solar projects, hospitals, hotels, resorts, and villas. Sathlokar has experience in designing and constructing projects across various states in India, such as Tamil Nadu, Karnataka, Uttar Pradesh, West Bengal, and Pondicherry.
Key Services and Capabilities:
1. EPC Turnkey Services: Sathlokar offers a comprehensive range of EPC services across the value chain, from detailed design, planning, procurement, engineering, and execution to project management, commissioning, and handover. The company handles all aspects of the construction process, ensuring timely and high-quality delivery for its clients.
2. Mechanical, Electrical, and Plumbing (MEP): Sathlokar specializes in the design and installation of MEP networks in construction projects. The company has a team of in-house MEP designers and engineers who meticulously manage the execution of these projects to meet high standards.
3. Solar Power Projects: As an authorized channel partner for TATA Power Solar Systems Ltd., Sathlokar provides installation, sales, commissioning, and maintenance services for solar power projects. This partnership strengthens their position in the growing renewable energy market.
4. Government Projects: The company actively participates in government tenders for infrastructure development and EPC projects funded by the Government of India (GoI).
Certifications and Expertise:
Sathlokar is ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), and ISO 45001:2018 (Occupational Health & Safety Management System) certified. This underscores their commitment to quality, safety, and environmental responsibility in all of their operations.
Core Competencies:
Sathlokar’s core competence lies in its integrated in-house capabilities that enable the company to manage projects from conceptualization to completion with a focus on faster turnaround times and de-risking. Their ability to manage the entire project lifecycle efficiently ensures that they can deliver high-quality results, while retaining talent and creating maximum value for stakeholders.
Revenue bifurcation from government and private entities:
Since Incorporatio, company have gradually increased its capabilities in terms of the size of projects. The following table sets forth information relating to the number of work orders awarded to company:
As of the first half of FY 25, the company boasts a robust order book valued at INR 761.06 crores, with INR 141.37 crores secured through September of the same year. This puts the company on track to achieve an additional INR 260.63 crores in the second half of the fiscal year, targeting a total of INR 402 crores in order book growth for FY 24-25.
Sathlokhar reported growth in key financial metrics for H1 FY 25:
Human Resources overview of Sathlokar Synergies Ltd.
1. Workforce Composition
2. Contractual Labor
Competitive strengths of Sathlokar Synergies Ltd.
1. Experienced Promoters and Strong Management Team: Sathlokar benefits from the leadership of promoters with over 20 years of experience in the infrastructure industry, along with a qualified senior management team. This combination ensures stability, effective execution of business strategies, and the ability to leverage market opportunities for continued growth.
2. Focused Fast-Track EPC Turnkey Construction: With over 11 years of experience in executing a wide range of EPC turnkey projects, including civil buildings, solar projects, MEP works, and more, Sathlokar has established itself as a reliable EPC player, successfully completing 64 projects since 2013.
3. Strong Order Book: As of April 2024, Sathlokar holds an order book worth approximately ₹66,978.53 Lakhs, spread across multiple states. This strong order book reflects the company’s consistent growth, ability to win competitive bids, and focus on its core EPC services.
4. Established Track Record of Timely Execution: Sathlokar’s successful execution of diverse EPC projects highlights its project management capabilities, efficient equipment deployment, and timely delivery. The company’s in-house supply chain and project management teams ensure operational efficiencies and on-time project completions.
5. In-House Integrated Model: Sathlokar utilizes an integrated business model, bringing all competencies in-house, from design and engineering to execution. This includes expertise in Civil, PEB, MEP, interior works, and solar projects, enabling efficient project delivery from conceptualization to completion.
Business Strategies of Sathlokar Synergies Ltd.
1. Geographical Diversification: Sathlokar aims to expand its market presence across various states in India to reduce reliance on specific regions and capitalize on diverse growth trends. This strategy helps to mitigate risks from volatile market conditions and price fluctuations, while widening the company’s revenue base.
2. Enhance Attractiveness through Quality Execution and Cost Efficiency: The company focuses on reducing execution costs without compromising quality. By leveraging economies of scale, Sathlokar aims to maintain cost competitiveness. Continuous employee training and development are key to enhancing operational efficiency and ensuring timely, high-quality project delivery.
3. Expansion into Warehouse & Industrial Construction: While continuing to focus on solar and MEP projects, Sathlokar plans to expand its portfolio by bidding for larger projects like warehouse and industrial buildings. This approach will help rationalize fixed costs and improve profitability, particularly through strategic joint ventures.
4. Enhancing Project Execution Capabilities: Sathlokar is committed to ensuring on-time project completion and maximizing client satisfaction. The company plans to adopt technologies, design improvements, and project management tools to increase productivity. Additionally, it aims to optimize operating costs and enhance project execution by training new engineers and implementing an ERP system for better control.
5. Develop and Maintain Strong Client Relationships: The company emphasizes the importance of strategic alliances with private and government clients, architects, and project management teams. By fostering long-term relationships, Sathlokar seeks to expand its client base and enhance its market opportunities.
6. Leverage Core Competencies with In-House Integration: Sathlokar plans to enhance its in-house capabilities through its sister concerns, strengthening its design, engineering, project management, and centralized procurement functions. By reducing dependence on external partners, the company aims to optimize operational efficiency, leading to cost and time savings.
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