**Artefact Projects Ltd.** is a premier Indian infrastructure consultancy firm specializing in **Project Management Consultancy (PMC)**, engineering, and planning services. With a **27-year track record**, the company serves as a critical technical intermediary for large-scale national infrastructure, primarily supporting the **National Highways Authority of India (NHAI)** and the **Ministry of Road Transport and Highways (MoRTH)**. --- ### Core Service Portfolio and Revenue Model The company operates as a single-segment entity under **"Project Consultancy,"** providing specialized technical oversight for the lifecycle of transport infrastructure. * **Service Verticals:** * **Supervision Consultancy:** Real-time monitoring of construction quality and progress. * **Independent Engineer (IE) Services:** Acting as a third-party mediator for **Operation & Maintenance (O&M)** and construction phases. * **Authority Engineer Services:** Technical representation for government bodies in highway upgradation and bypass construction. * **Conservative Revenue Recognition Policy:** Effective from **FY 2024-25**, the company adopted a uniform policy of recognizing revenue only upon **formal approval and acceptance by the client**. * As of February 2026, this policy resulted in **₹9.91 crore** in unbilled invoices. * **₹7.77 crore** is currently carried as **Work in Progress (WIP) at cost**, representing services rendered but pending final client sign-off. * **Strategic Outsourcing:** To manage the composite nature of large-scale projects, Artefact frequently contracts with related parties, including **Artefact Infrastructure Private Limited** and **Renaissance IOT LLP**, for specialized technical support. --- ### Order Book and Revenue Visibility Artefact Projects has demonstrated significant momentum in order inflows, securing over **20 projects** totaling **₹142 Crores** in a single year. | Metric | Value (Approx.) | | :--- | :--- | | **Current Order Book (Gross Fees)** | **₹315.10 Crores** | | **Historical Order Book (June 2023)** | **₹205.00 Crores** | | **Projected Turnover Growth** | **~100% increase** in annual levels | | **Revenue Visibility** | **4 to 5 Years** | **Recent High-Value Contract Awards (2025-2026):** * **NH-16 Andhra Pradesh:** 6-Laning (Chilakaluripet-Vijayawada) – **₹7.77 Crores** * **NH-36 Tamil Nadu:** 4-Laning (Sethiyathope-Thanjavur) – **₹7.67 Crores** * **NH-343 Chhattisgarh:** Upgradation (Package I & III) – **₹5.96 Crores** * **NH-16 Odisha:** 4-Lane Access Controlled (Cuttack-Kandarpur) – **₹5.10 Crores** * **Vadodara-Kim Expressway:** 8-Lane Bharatmala – **₹4.98 Crores** * **NH-47 Madhya Pradesh:** Independent Engineer (O&M) – **₹3.53 Crores** --- ### Strategic Growth and Capital Allocation The company is executing a long-term development plan to transition into a high-performance consultancy with diversified interests. * **Capital Expenditure:** Committed **₹60 Crores** toward business expansion and operational efficiency. * **Vertical Diversification:** Actively expanding beyond the highway sector into **Railways** and **Urban Infrastructure**. * **Digital Transformation:** Investing in **IT hardware, software, CRM, and ERP systems** to enhance data management and scalability. * **Physical Capacity:** Approved the **₹31 Crore** purchase of the 10th and 11th floors of **"Artefact Towers"** in Nagpur to accommodate a growing workforce. * **Financial Strengthening:** * Prepayment of **₹5 Crores** in bank debt to reduce leverage. * Increased **Authorised Share Capital** from **₹10 Crores** to **₹15 Crores** to facilitate future equity fund-raising. --- ### Financial Performance and Asset Position The company’s financials reflect a period of consolidation and investment in manpower to support a larger project load. **Comparative Financial Summary:** | Metric | FY 2024-25 (Actuals/Notes) | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Net Profit After Tax (PAT)** | **₹7.44 Crore** | - | - | | **Net Worth** | - | **₹59.28 Crore** | **₹55.65 Crore** | | **Gross Block of Fixed Assets** | **₹24.04 Crore** | **₹22.26 Crore** | **₹22.01 Crore** | | **Sundry Debtors** | **₹12.30 Crore** | **₹15.78 Crore** | **₹14.74 Crore** | | **Paid-up Equity Capital** | - | - | **₹7.275 Crore** | **Operational Cost Trends:** * **Manpower Costs:** Increased by **30.40%** due to the expansion of project sites and competitive salary adjustments. * **Admin & Selling Costs:** Rose by **56.13%** following the setup of new project-specific offices. * **Debt Management:** Secured long-term borrowings have been reduced to **₹80.96 Lacs**, supported by a **₹11.25 Crore** working capital facility from **Punjab National Bank**. --- ### Joint Ventures and Strategic Investments Artefact utilizes **Joint Ventures (JVs)** to meet technical bidding requirements for international and complex domestic contracts. * **Key JVs:** * **Zaidun Leeng Sdn. Bhd. - Artefact Projects** * **Sheladia Associates Inc. - Artefact Projects - Zaidun Leeng Sdn. Bhd.** (Artefact holds **65%** share in residual profits). * **Strategic Assets:** * **₹12.00 Crore** in unquoted fully compulsory convertible debentures of private **mining companies**, backed by explored reserves. * **₹16 Lakh** investment in **Akola Urban Co-operative Bank**. * **₹17.36 Crore** in interest recoverables on specific loans, which management deems fully collectible. --- ### Risk Profile and Mitigation While the company benefits from the **Union Budget 2025-26** focus on **"Viksit Bharat 2047"** and the **₹10 Lakh Crore** asset monetization target, several risks are monitored: * **Accounting Sensitivities:** The shift to "approval-based" revenue recognition can cause temporary fluctuations in reported profits. As of November 2025, pending bill acceptances reduced reported profit by **₹1.62 Crore**. * **Auditor "Emphasis of Matter":** * **Recoverables:** Auditors highlight **₹6.31 Crore** in advances to associate companies and LLPs; management maintains these are fully recoverable. * **Liquidity:** While the company is currently capable of meeting liabilities, auditors note no absolute guarantee for all short-term liabilities maturing within one year. * **Market Volatility:** Susceptibility to global macroeconomic "aberrations" (wars, tariffs) is mitigated by a focus on domestic, government-funded infrastructure. * **Concentration Risk:** Currently highway-heavy, but being addressed through partnerships with firms like **Manglam Infra** and **MSV International** to enter the Railways and Urban sectors.