Kalpataru Projects International (KPIL) Q4 15/16 earnings summary

Executive summary

• Standalone FY16 revenue declined 1.3% to ₹4,364.6 Cr, while PAT rose 20.5% to ₹199.5 Cr; consolidated revenue grew 2.5% to ₹7,380.4 Cr.

• Prioritized margin improvement and selective, margin-accretive orders; secured ₹7,450 Cr of new orders and ended FY16 with an ₹8,300 Cr standalone order book.

Financial highlights

• Standalone EBITDA was ₹467 Cr, up 9% YoY; EBITDA margin improved to 10.8% from 9.8%, supported by operating efficiencies.

• Standalone PBT rose to ₹306.5 Cr from ₹252.9 Cr; PAT was ₹199.5 Cr versus ₹165.6 Cr.

• Consolidated net revenue was ₹7,380.4 Cr versus ₹7,198.2 Cr; consolidated PAT was ₹117.5 Cr versus ₹120.4 Cr.

• Standalone EPS increased to ₹13.00 from ₹10.79; consolidated EPS was ₹7.64 versus ₹7.83.

Outlook and guidance

• Expected sizable domestic T&D orders from PGCIL and state electricity boards, with international opportunities in African and CIS markets and a large project pipeline.

• Outlook for railways remained positive amid government investment plans; additional gas-grid development and pipeline construction were identified as opportunities.

• Strategy remains focused on adequately funded international projects, large margin-accretive domestic orders, receivables discipline, quality assurance and safety.