Delta Galaxy Engineering Services provides engineering and infrastructure solutions under one roof. With a vision to transform raw ideas into tangible outcomes, it is more than just a service provider; it is a trusted partner that works closely with clients to deliver projects that are not only efficient and cost-effective but also environmentally friendly and socially responsible.
Usually, government agencies publish tender details for public expenditure programs on the GeM portal, where contracts are awarded based on contractors’ qualifications and bids. Only firms meeting specific experience and turnover criteria qualify for large contracts, and these firms frequently subcontract portions of the work.
Delta Galaxy capitalizes on these opportunities by undertaking the subcontracted portions from major entities and executing them successfully. This strategy enables Delta Galaxy to participate in large projects without directly competing for tender bids, ensuring that payments are made promptly and in full upon delivery.
The company’s infrastructure services cover a broad spectrum of activities, from the construction of highways and bridges to urban development projects and building constructions. This planning phase includes feasibility studies, environmental assessments, and resource planning, which together ensure that the project is both viable and sustainable. Once the plans are in place, the company moves into the implementation phase, where skilled workers and advanced machinery work together.
Design, Planning, Implementation and Deployment
Every successful infrastructure project starts with a strong foundation in design and planning which involves site surveys, mapping out the terrain, and careful selection of materials and technologies to be used during construction. Implementation and deployment involve coordinating various teams, machinery, and resources to start the actual construction process. Delta Galaxy uses state-of-the-art equipment and project management software to ensure that every task is carried out efficiently and on schedule.
Infrastructure Management and Support
Even after a project is completed, the work is far from over. Infrastructure requires ongoing management and support to ensure that it remains safe, functional, and up to date with modern standards. Delta Galaxy provides comprehensive maintenance and support services to ensure that every structure continues to perform optimally long after it is built. This involves routine inspections, prompt repairs, and sometimes even upgrades to incorporate new technologies.
Mining is a complex and challenging field that involves the extraction of valuable resources from the earth. Delta Galaxy has developed a specialized mining division that handles every step of the mining process. From the initial exploration to the extraction and transportation of minerals, the company’s mining works are designed to be efficient, safe, and environmentally responsible.
Exploration and Site Assessment
The mining process begins with exploration and site assessment. In this phase, skilled engineers work together to locate potential mining sites and evaluate their resource potential. This involves detailed surveys, rock sampling, and environmental assessments to ensure that the site is suitable for mining. . The data collected during this phase is crucial in making informed decisions about the feasibility of the mining project.
Site Development and Infrastructure Preparation
Once a promising site is identified, the next step is to prepare the area for mining operations. This stage involves clearing the land, constructing access roads, and setting up essential infrastructure such as water supply, power lines, and communication networks. Delta Galaxy takes great care to ensure that this development is done in a sustainable manner, minimizing environmental disruption and preserving the natural landscape.
Extraction and Processing
Delta Galaxy uses advanced machinery like excavators, mining dumpers, and front wheel loaders to efficiently remove overburden, the layer of soil and rock that covers the mineral deposits, and access the valuable resources underneath. The extracted materials are then processed using techniques such as drilling, controlled blasting, and crushing to break down large rocks into smaller, manageable pieces.
Transportation of Mined Materials
After extraction and processing, the mined materials must be transported to processing plants or directly to clients. Delta Galaxy manages this crucial step by using a fleet of specialized vehicles that are designed to handle heavy loads and navigate challenging terrains. This transportation process is carried out with an emphasis on safety and efficiency, ensuring that the materials reach their destination intact and on time.
Water Treatment and Supply Division
Water is a vital resource that supports all aspects of life, from domestic use to industrial operations. Recognizing the importance of clean and reliable water, Delta Galaxy Engineering Services Limited has developed a dedicated Water Treatment and Supply Division. This division focuses on designing, installing, and maintaining water treatment systems that ensure safe water is available for communities and industries alike.
Industrial automation involves using machines, computer systems, and control technologies to handle tasks that were once done by human labor. The company’s expertise in this area ensures that clients can achieve higher efficiency, improved product quality, and lower operational costs. Major Clients include Procter & Gamble (P&G) for customised baby diaper machines and sanitary pad machines, Jindal Aluminium and Raviraj Foils for cold rolling machines, which reduce the thickness of metals.
One of the primary services offered in industrial automation is the installation and commissioning of automated systems. The process involves carefully planning the layout of machines, integrating them with computer systems, and ensuring that all components communicate effectively.
Every industrial setup has unique requirements, and their automation solutions are fully customizable to meet these demands. The company collaborates closely with clients to understand their operational needs and then tailors the automation systems accordingly.
The effective operation of any industrial project heavily depends on the availability of reliable equipment and machinery. This division focuses on not only supplying high-quality equipment but also providing services like equipment leasing, maintenance, and repair. The company’s commitment is to ensure that each piece of equipment is operating at its best, thereby minimizing downtime and maximizing productivity.
Equipment Sales and Rentals
Delta Galaxy provides both sales and rental options for a wide variety of industrial machinery. This flexibility ensures that clients, whether they are small enterprises or large corporations, have access to the equipment they require without the burden of high upfront costs.
Leasing, Financing, and Maintenance
Understanding that purchasing new equipment can be expensive, Delta Galaxy offers leasing and financing options that make it easier for clients to acquire the necessary machinery. Additionally, the company provides comprehensive maintenance and repair services to keep the equipment in top condition. This all-around support ensures that clients can focus on their core operations while Delta Galaxy takes care of the technical details.
This division is dedicated to executing projects with precision, from initial planning to final delivery. Works contracts may involve building new structures, renovating existing facilities, or maintaining operational infrastructure.
Under the construction umbrella, Delta Galaxy undertakes projects of all sizes—from small-scale renovations to large commercial constructions. The company leverages its deep expertise in building design, material selection, and construction techniques to ensure that every project is robust, safe, and built to last.
Renovation and remodeling services provided by Delta Galaxy breathe new life into existing structures. Whether it is upgrading an old facility or completely transforming a space, the company focuses on minimizing disruption while maximizing the efficiency of the final outcome. This service is ideal for clients looking to modernize or repurpose existing assets without starting from scratch.
Recently, Delta Galaxy Engineering Services Ltd has announced a rights issue aimed at raising capital to repay loans and support general business needs. This opportunity is exclusively available to existing shareholders, allowing them to subscribe to additional equity shares.
Key Details:
Issue Ratio: 1:1 (One new share for every one share held)
Subscription Price: ₹92 per share (inclusive of a premium of ₹82 per share)
Record Date: January 31, 2025
Issue Open Date: February 08, 2025
Issue Close Date: February 22, 2025
Promoters and key personnel will subscribe only to the extent of their entitlement, ensuring that there is no dilution in control after the rights issue. This rights issue presents an opportunity for current shareholders of Delta Galaxy Unlisted Shares [View CMP here] to increase their stake in Delta Galaxy Engineering Services Ltd while the company strengthens its capital base for future growth initiatives.
Urbanization and Economic ExpansionAs populations shift from rural areas to urban centers in search of better opportunities, the need for housing, public amenities, and efficient transportation becomes paramount. This urban migration creates a ripple effect where every new settlement demands comprehensive infrastructure, from water supply networks and waste management systems to connectivity solutions.
Automation, Real-Time Data, and Smart IntegrationThe integration of automation and smart systems transforms how projects are managed, monitored, and executed. For instance, using sensors to track project progress in real time allows the company to address issues and ensure that each phase of a project is executed seamlessly. Predictive analytics and machine learning further refine this process by forecasting maintenance needs and optimizing resource allocation.
Diversification of Services and Revenue StreamsTHE strategic diversification into multiple sectors is a deliberate approach to mitigate risk and tap into varied market opportunities. By extending its portfolio beyond traditional construction and infrastructure services, the company covers a wide spectrum, including mining, water treatment, industrial automation, and transportation. This multi-sector exposure ensures that downturns in one market segment can be offset by growth in another, creating a balanced and resilient revenue model.
Orderbook and Geographic ExpansionA strong and diversified orderbook is the lifeblood of sustained growth, providing a predictable revenue stream and a clear roadmap for future expansion. Delta Galaxy’s orderbook is built on a foundation of confirmed, pending, and long-term projects that span multiple sectors and geographies. This pipeline not only ensures immediate cash flow but also signals confidence from clients and investors in the company’s ability to deliver complex projects on time and within budget. The strategic focus on geographic expansion allows Delta Galaxy to tap into emerging markets and new regional opportunities, thereby broadening its customer base and reducing dependency on any single market.
Revenue & ProfitabilityRevenue from operations more than doubled during the period, climbing from approximately 79.48 crores in 2023 to 174.47 crores in 2024. Although total expenses increased from about 76.23 crores to 154.55 crores, the rise in revenue has resulted in a marked improvement in profitability. Profit before tax surged from around 3.25 crores to 19.92 crores, while net profit increased from about 2.71 crores to 14.04 crores. This income growth, despite rising costs for materials, finance, and other operational expenses, underscores the company’s ability to scale its operations and orderbook, while managing costs effectively. Furthermore, the net profit ratio improved from 3.42% to 8.05%, indicating higher margins and a competitive market standing.
Cash Flow Analysis
The cash flow analysis reveals a cautious yet improving scenario. Net cash generated from operating activities improved from a negative ₹17.80 crores in 2023 to negative ₹5.57 crores in 2024, showing progress in operational cash generation though still in the red. The shift in investing activities from a cash outflow of ₹5.11 crores in 2023 to a modest inflow of ₹0.86 crores in 2024 suggests more prudent capital expenditure decisions. However, net cash from financing activities dropped significantly from ₹24.64 crores to ₹3.98 crores, reflecting reduced reliance on external financing. Overall, the net change in cash and cash equivalents was a slight decrease of ₹0.73 crores in 2024 compared to an increase of ₹1.72 crores in 2023, indicating that while the company is growing, it must focus on further strengthening its cash generation capabilities to support ongoing operations.
Shareholder's Funds:The shareholder’s funds have experienced an increase, rising from ₹3.20 crores in 2023 to ₹27.19 crores in 2024, primarily driven by a boost in share capital and a buildup in reserves and surplus. Share capital surged due to conversions of loans into equity and share split. Concurrently, reserves and surplus grew as well, reflecting improved profitability and effective reinvestment of earnings. This strong capital base not only strengthens the financial position of the company but also enhances its ability to fund future projects and navigate market challenges.
Financial Ratios:
Current Ratio: The current ratio measures a company's ability to pay its short-term liabilities using its short-term assets. For Delta Galaxy, the current ratio increased from 1.22x to 1.43x, which suggests that the company is in a better position to meet its short-term obligations, which is a positive sign for financial stability.
Debt-Equity Ratio: This ratio compares the amount of debt a company has to its shareholder equity. A high ratio indicates heavy reliance on borrowed funds, which can be risky. The debt-equity ratio dropped from 9.97x to 1.05x. This shift suggests a much healthier balance and lower financial risk, as the company is less dependent on borrowing, as it also has been increasing its equity shareholder base.
Return on Equity (ROE): ROE measures how effectively a company uses the money invested by its shareholders to generate profit. Although Delta Galaxy's ROE decreased from 85.02% to 51.65%, this isn’t necessarily a bad sign. The lower percentage is largely due to an expanded equity base, meaning the company has more capital invested by shareholders.
Inventory Turnover Ratio: This ratio shows how quickly a company sells and replaces its inventory. A lower ratio might indicate slower sales or overstocking. Delta Galaxy’s inventory turnover fell from 7.29x to 3.64x, suggesting that inventory is moving more slowly than before.
Trade Receivables Turnover Ratio: This ratio indicates how efficiently a company collects payments from its customers. A higher ratio means the company collects its receivables more quickly. Delta Galaxy’s trade receivables turnover improved slightly from 4.36x to 4.64x, which is good for maintaining a healthy cash flow.
Project Integration and Execution RisksDelta Galaxy undertakes complex, multi-disciplinary projects that combine traditional construction witH digital technologies. For example, the integration of advanced systems like IoT sensors, and robotics in both infrastructure and mining projects could face unforeseen technical glitches. Should these technologies not interface as planned or require extensive rework, project timelines might slip, leading to cost overruns and jeopardizing client confidence.
Regulatory and Environmental Compliance RisksOperating in sectors like mining, water treatment, and large-scale infrastructure means Delta Galaxy must navigate stringent regulatory environments. Specific risks include delays in securing environmental clearances, unexpected changes in environmental laws, or non-compliance with new regulations that impact mining operations or water treatment processes. Such hurdles can result in project delays, fines, or even temporary shutdowns of ongoing operations.
Capital Intensity and Funding RisksThe capital-intensive nature of Delta Galaxy’s projects, especially in infrastructure and mining, necessitates continuous heavy investment. Specific risks involve potential liquidity constraints, unfavorable changes in interest rates, or shifts in lending policies by financial institutions. These factors might limit the company’s ability to secure financing for ongoing projects or expansion plans, impacting overall growth.
Supply Chain and Material Sourcing RisksDelta Galaxy’s operations are highly dependent on a consistent supply of critical raw materials and specialized machinery. Specific risks here include supply chain disruptions stemming from geopolitical tensions, sudden price volatility in commodities, or poor performance by key suppliers. Such issues can lead to material shortages, increased costs, or delays in project delivery.
Equipment and Raw Material VolatilityFor instance, any disruption in the supply of heavy machinery used in mining or advanced components for automation systems can halt progress. This is compounded if global commodity prices spike unexpectedly, squeezing margins and forcing project re-evaluations.
The company’s extensive portfolio and diverse range of services are unified by a commitment to excellence in every phase of the project lifecycle. Whether it is through the careful planning of infrastructure projects, the innovative techniques employed in mining operations, the advanced solutions offered in water treatment and industrial automation, or the robust support provided in equipment maintenance and human resource management, every aspect of Delta Galaxy’s operations is designed to deliver superior value. By understanding and appreciating these core aspects—from the initial vision and detailed planning to the execution of complex projects and continuous improvement—clients and partners can see how Delta Galaxy Engineering Services Limited is setting new benchmarks in the engineering services industry.
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