Globe Civil Projects Ltd IPO

For the nine months period ended December 31, 2024 and in Fiscal 2024, Fiscal 2023 and Fiscal 2022, we derived 10.10%, 29.77%, 57.48% and 54.62%, respectively, of our revenue from operations from construction project receipts business segment from projects developed by Central Public Works Department ("CPWD"), our top customer. Any slowdown or inability to win new project awards from CPWD (whether due to a slowdown or cessation in new projects being undertaken by such entities), an inability to qualify for and successfully compete for new projects or otherwise) or the loss of any of our current significant projects (whether due to restructuring or termination of such projects) could adversely affect our business, results of operations and financial condition.

Our business and profitability are substantially dependent on the demand for construction services, change in budgetary allocation and the requirements for construction projects in the infrastructure and non-infrastructure sectors across India. During the nine months period ended December 31, 2024 and in Fiscal 2024, the Social & Commercial Infrastructure segment (Education institutions) contributed to 61.95% and 47.09%, respectively, of our revenue from operations (construction project receipts). Any reduction in the activity and expenditure levels in such sectors may adversely affect our business and prospects and may reduce the number of projects we undertake and impede our growth.

For the nine months ended December 31, 2024, our Company submitted successful bids for 11 projects but secured only one, reflecting a success rate of 9.09%, compared to 54.55% in FY24. Our revenues depend upon the award of new contracts and the timing of those awards. Additionally, the competitive bidding process, failure to meet pre-qualification criteria, and non-qualification due to technical issues may hamper our revenue. Consequently, our results of operations and cash flows may be adversely affected or fluctuate materially from period to period.

For the nine months period ended December 31, 2024 and in Fiscal 2024, Fiscal 2023 and Fiscal 2022, we derived 3.14%, 11.71%, 14.92% and 11.23%, respectively, of our revenue from operations from trading of goods, primarily TMT steel. Any reduction in trading activity, changes in market demand, or fluctuations in the price of TMT steel may reduce our revenue from this segment and, consequently, impact our total revenue from operations.

As of March 31, 2025, our Order Book, on a consolidated basis, was ?6,691.02 million. Projects included in our Order Book may be delayed, modified or cancelled for reasons beyond our control, or not fully paid for by our clients, which could materially harm our cash flow position, revenues or profits.

For the nine months period ended December 31, 2024 and for the Fiscal 2024, Fiscal 2023 and Fiscal 2022, our revenue from operations from projects undertaken under JVs contributed 36.40%, 33.36%, 28.98%, and 35.15%, respectively, amounting to ?897.92 million, ?978.44 million, ?575.36 million, and ?891.50 million, respectively. The failure of a JV counterparty or consortium member to perform its obligations could impose additional financial and performance obligations resulting in reduced profits or, in some cases, significant losses, and it may adversely affect our business, results of operations and financial condition.

For the nine months period ended December 31, 2024 and for the Fiscal 2024, Fiscal 2023 and Fiscal 2022, our % contribution to revenue from operations (construction project receipts) from our top ten projects was 98.33%, 89.54%, 92.82% and 99.13%, respectively. Further, our Company's revenue from operations (construction project receipts) stood concentrated in the top 10 ongoing projects out of the total ongoing projects during the Fiscals 2024, 2023 and 2022. As on March 31, 2025, there were 13 ongoing projects. Any delay or loss of any of these projects could adversely affect our business, cash flow position, results of operations and financial condition.

Our business and profitability are substantially dependent on the availability and cost of our raw materials, and we are dependent on third party suppliers for meeting our raw material requirements. Any disruption to the timely and adequate supply, or volatility in the prices of, raw materials may adversely impact our business, results of operations and financial condition.

We are increasingly dependent on sub-contractors for workforce, materials, and specialized work. Subcontractor costs were 35.14% in FY23, 44.57% in FY24, and 54.65% for the nine months ended December 31, 2024-reflecting a rising trend. Our business in manpower intensive, and we are dependent on an adequate supply and availability of contract labour engaged by our sub-contractors at our project locations. Any unavailability or shortage of such supply of contract labour for our project sites could adversely affect our operations.

The determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares, market capitalization and price to earnings ratio based on the Issue Price of the Equity Shares, may not be indicative of the market price of the Company on listing or thereafter and, as a result, you may lose a significant part or all of your investment.