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

Executive summary

• Consolidated revenue grew 9% YoY in Q2 FY25 to ₹4,929.93 crore, driven by strong execution in T&D, B&F, oil & gas, and urban infra segments, with net profit up 39.7% YoY to ₹125.56 crore.

• EBITDA margin improved by 70 bps YoY to 8.9% in Q2; consolidated EBITDA up 18% YoY to ₹438 crores.

• PAT grew 40% YoY to ₹126 crores in Q2; PBT up 42% YoY to ₹188 crores.

• Order book reached a record ₹60,631 crores as of September 2024, with order inflows of ₹11,865 crores YTD, mainly from T&D and B&F.

• Net debt declined sequentially to ₹3,668 crores due to improved collections and working capital moderation.

Financial highlights

• Q2 consolidated revenue: ₹4,929.93 crores (+9% YoY); H1: ₹9,517 crores.

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

• Q2 consolidated PBT: ₹188 crores (up 42% YoY); PAT: ₹126 crores (up 40% YoY); PAT margin: 2.5%.

• Standalone Q2 revenue: ₹4,136 crores (+8% YoY); standalone PAT: ₹132 crores (+17% YoY); standalone EBITDA margin at 8.4%.

• Finance costs increased in Q2 due to higher volumes and customer advances, but annual interest cost targeted below 2% of sales.

Outlook and guidance

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

• FY25 revenue growth may be slightly below initial 20%+ target due to water business challenges, but 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.

• Strategic focus on core businesses, especially HVDC T&D, metro rail, and airports EPC.