Kalpataru Projects International (KPIL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 8.2% YoY to ₹4,587 crores, driven by a strong order book and diversified business profile, despite seasonality, labor shortages, and election-related challenges impacting execution and collections, especially in the water segment.

• Order inflows (including L1) reached ₹12,015 crores YTD FY25, with 90% in T&D and B&F at better margins; order backlog rose 21% YoY to ₹57,195 crores as of June 2024, providing strong business visibility.

• EBITDA stood at ₹378 crores (margin 8.2%), reflecting changes in project mix and resource investments; PAT for Q1 FY25 was ₹84 crores, down 26% YoY due to higher finance costs and forex losses.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with statutory auditors issuing an unmodified review report.

Financial highlights

• Consolidated revenue was ₹4,587 crores (up from ₹4,241 crores YoY); EBITDA margin at 8.2% (down from 9.0% YoY); PAT margin at 1.8% (down from 2.7% YoY).

• Standalone revenue was ₹3,722 crores, with standalone EBITDA at ₹314 crores (margin 8.4%) and PAT at ₹117 crores.

• Net debt at standalone level stood at ₹2,907 crores; consolidated net debt rose to ₹3,739 crores, up ₹1,148 crores sequentially.

• Net working capital days increased to 124, with a target to reduce below 100 by year-end.

• Additional provision for warranty guarantees and a ₹17 crores forex loss in Brazil subsidiary impacted Q1 results.

Outlook and guidance

• Revenue growth guidance for FY25 is 20%+, with order inflow target of ₹22,000–23,000 crores, led by T&D and B&F.

• PBT margin expected in the 4.5%-5% range; EBITDA margin guidance at 8.5%-9%.

• Margin recovery expected from Q2, with significant improvement in H2 as collections and productivity normalize.

• Working capital expected to normalize post budgetary allocations, targeting net working capital days below 100 by FY25 end.

• Management does not expect any material adjustments to financial results from ongoing tax and GST investigations.