Kalpataru Projects International (KPIL) Q2 24/25 earnings summary

Executive summary

• Consolidated revenue for Q2 FY25 increased 9% year-over-year to ₹4,930 crores, driven by strong execution in T&D, B&F, oil & gas, and urban infra segments.

• EBITDA margin improved by 70 bps YoY to 8.9%, with consolidated EBITDA up 18% YoY to ₹438 crores.

• PAT grew 40% YoY to ₹126 crores in Q2; PAT margin at 2.5%.

• Order book reached a record ₹60,631 crores as of September 2024, diversified across segments and geographies.

• Signed definitive agreement to divest Vindhyachal Expressway Pvt. Ltd. for ₹775 crores, expected to close in FY26.

Financial highlights

• Q2 FY25 consolidated revenue: ₹4,930 crores (+9% YoY); H1 FY25: ₹9,517 crores (+9% YoY).

• Q2 FY25 consolidated EBITDA: ₹438 crores (+18% YoY); margin at 8.9%.

• Q2 FY25 consolidated PAT: ₹126 crores (+40% YoY); PAT margin at 2.5%.

• Standalone Q2 FY25 revenue: ₹4,136 crores (+8% YoY); standalone EBITDA margin at 8.4%.

• Net debt declined sequentially to ₹3,668 crores at consolidated level.

Outlook and guidance

• Confident of delivering healthy growth and improved margins from Q3 onwards, supported by strong order book and execution visibility.

• Order inflow momentum remains strong with ₹11,865 crores secured in FY25 YTD and additional L1 position of over ₹7,000 crores.

• Revenue growth for FY25 may be slightly below initial 20%+ target due to water business challenges, but all other segments expected to maintain 20%+ growth.

• PBT margin guidance maintained at 4.5%-5% for FY25; EBITDA margin expected to improve by 25-50 bps in coming years.

• Order intake guidance of ₹22,000-23,000 crores for FY25 reaffirmed, with review at end of Q3.