KNR Constructions (532942) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw consolidated revenue of INR 985 crore (flat YoY), EBITDA of INR 229 crore (margin 28.3%), and PAT of INR 166 crore, up 28% YoY; standalone PAT grew 21% YoY.

• Standalone revenue was INR 880 crore, with EBITDA up 11% YoY to INR 192 crore and net profit up 20% YoY to INR 134 crore.

• Arbitration claims and dividend income from associates significantly boosted Q1 results.

• Order book as of June 30, 2024, stood at INR 4,922 crore, with potential to rise to INR 6,122 crore pending Appointed Dates.

• Board approved Q1 FY25 results and scheduled the 29th AGM for September 26, 2024.

Financial highlights

• Standalone Q1 FY25 revenue: INR 880 crore (-5% YoY); EBITDA: INR 192 crore (+11% YoY); PAT: INR 134 crore (+21% YoY).

• Consolidated Q1 FY25 revenue: INR 985 crore (flat YoY); EBITDA: INR 229 crore (+29% YoY); PAT: INR 166 crore (+28% YoY).

• Standalone EBITDA margin: 21.8%; consolidated EBITDA margin: 28.3%.

• Working capital days at 53-78 as of June 2024.

• Dividend income of INR 14.5 crore from associate company.

Outlook and guidance

• Revenue for FY25 expected to be flat or match last year, with growth dependent on new order execution in Q3/Q4.

• FY26 growth expected if targeted order inflow is achieved; otherwise, muted growth of 5-10% possible.

• Margin guidance for FY25/26 is 15-16% if input prices remain stable.

• Focus on timely project execution and expanding into new business verticals such as metro rail and railway projects.

• Targeting INR 6,000-7,000 crore in new order inflow by FY25 end.