Kalpataru Projects International (KPIL) Q4 17/18 earnings summary

Executive summary

• FY18 standalone revenue rose 15.3% to ₹5,778.5 crore; PAT increased 19.7% to ₹322 crore, supported by stronger execution, cost controls and working-capital efficiencies.

• Consolidated revenue grew 14.6% to ₹8,741.7 crore and PAT to ₹278.3 crore from ₹157.3 crore; order book reached ₹20,020 crore at year-end.

• Diversification accelerated: Oil & Gas Pipeline and Railways revenue increased 60% to ₹1,092 crore, while international operations contributed 41% of standalone revenue.

Financial highlights

• Standalone core EBITDA, excluding other income, was ₹631 crore, up 19% YoY; EBITDA margin was 10.9%, PBT margin 8.6% and PAT margin 5.5%.

• Consolidated core EBITDA was ₹1,022 crore at an 11.7% margin; PAT margin was 3.2% and PBT margin 5.3%.

• Standalone new order intake was ₹9,341 crore versus ₹6,200 crore in FY17; year-end order book was ₹12,404 crore versus ₹9,017 crore.

• Standalone operating cash flow was ₹103.5 crore versus ₹321.7 crore in FY17, with receivables absorbing ₹1,120 crore of cash before payables movements.

• Consolidated net debt rose to ₹3,057 crore from ₹2,602 crore; standalone net debt was ₹693 crore versus ₹484 crore.

Outlook and guidance

• FY19 growth guidance maintained at 15–20%, with robust order-book visibility and order book-to-sales visibility improved to 2.15x from 1.79x in FY17.

• International transmission markets in Africa, South-East Asia and Latin America remain key targets; planned expansion of Railways and Oil & Gas infrastructure internationally is systematic.

• Growth opportunities include renewable-energy transmission corridors, interconnections, railway electrification and design-build projects, plus expansion of India's gas pipeline grid.

• Infrastructure business expansion and selective inorganic opportunities remain under evaluation, alongside potential entry into clean-tech and renewable EPC verticals.