EMS Limited expects revenue growth to stabilize at 25% in FY24

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EMS Limited, a leading provider of sewerage and water solutions, expects its revenue growth to normalize to about 25% in the current financial year 2023-24 (FY24), from 50% in the previous fiscal year (FY23).

The company’s revenue growth slowed down in FY23 due to the removal of government restrictions that facilitated the completion of pending projects. However, the company expects to grow at a steady-state of 25% in the coming years.

“FY23 experienced higher growth due to the government lifting certain restrictions that facilitated the completion of pending projects. Nevertheless, on a steady-state basis, the company anticipates a 25 percent growth in its turnover,” said Ashish Tomar, Founder and Managing Director of EMS Limited.

In the past, the company had faced government blacklisting for two reasons: inadequate safety issues and incorrect reporting of facts in bid documents. However, the company has addressed both these issues and has been cleared by the courts.

“The blacklisting by UP Jal Nigam occurred due to an incident at the Ghaziabad worksite. However, the company sought legal redress through the High Court, which retrospectively ruled that the blacklisting violated the law and subsequently lifted the blacklisting,” said Mr. Tomar.

“On the second issue concerning misreporting of facts too, the company pursued legal recourse through the High Court. This led to the dissolution of the evaluation committee of the Bihar Urban Infrastructure Development Corporation Ltd., (BUIDCo) by the High Court, which then entrusted the evaluation to a panel chosen by the High Court. Ultimately, this panel nullified the department’s blacklisting order, allowing the company to secure the project,” he added.

Currently, the company has bid for projects worth Rs 2,000 crore and expects to bag orders worth Rs 300 crore-400 crore. The company’s current order book stands at Rs 1,750 crore and about 85% of the book comes from building and electrification works.

EMS Limited’s initial public offering (IPO) was fully subscribed on the first day of bidding on September 8. The company aims to raise Rs 321.24 crore through this IPO, which includes a fresh issuance of shares valued at Rs 146.24 crore and an offer-for-sale of 82.94 lakh shares, totalling Rs 175 crore at the upper price band.

The company’s shares are valued at a price-to-earnings (P/E) ratio of 10.7 times based on FY2023 earnings. Key Indian participants in the water and wastewater treatment market which constitute the majority of their revenue are VA Tech Wabag and L&T (only water segment). VA Tech Wabag’s P/E valuation presently sits at 13.8 times.

About EMS Limited

EMS Limited is a leading provider of sewerage and water solutions in India. The company was founded in 1995 and is headquartered in Ghaziabad, Uttar Pradesh. EMS Limited has a strong track record of execution and has completed over 1,000 projects across India. The company’s clients include government agencies, private sector companies, and international organizations.

EMS Limited is a well-managed company with a strong management team. The company has a clear focus on growth and is well-positioned to capitalize on the growing demand for sewerage and water solutions in India.


EMS Limited is a well-positioned company with a strong track record of execution. The company is expected to grow at a steady-state of 25% in the coming years. The company’s IPO was fully subscribed on the first day of bidding, which is a positive sign for the company’s future prospects.


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