Kalpataru Projects International (KPIL) Q4 19/20 earnings summary

Executive summary

• FY20 standalone revenue rose 11% to ₹7,904 crore and PAT rose 15% to ₹463 crore; consolidated revenue rose 17% to ₹12,676 crore, while PAT fell ~20% to ₹390 crore.

• Consolidated order book was ₹22,834 crore at March 31, 2020; standalone order book was ₹13,288 crore. Execution spanned EPC, transmission, railways, oil and gas, and civil infrastructure.

• FY20 performance was resilient amid economic headwinds, but March lockdowns affected Q4 revenue and delayed some project completions; the coming year faced substantial COVID-19 uncertainty.

Financial highlights

• Standalone revenue from operations was ₹7,904 crore vs ₹7,115 crore; PAT was ₹463 crore vs ₹401 crore. Core EBITDA was ~₹860 crore, with a 10.9% margin.

• Consolidated revenue was ₹12,676 crore vs ₹10,840 crore; PAT was ₹390 crore vs ₹487 crore and EPS was ₹25.25 vs ₹30.42.

• Consolidated PBT before exceptional items and tax was ₹644 crore vs ₹761 crore; results included a ₹79.47 crore expected-credit-loss provision on a JV loan.

• Standalone EPS was ₹30.02 vs ₹26.15. Exceptional items included a ₹30.79 crore gain on KSTPL sale and ₹6.85 crore investment impairment.

• Consolidated exceptional items included a ₹12.31 crore gain on KSTPL sale and ₹8.25 crore impairment of land, property, plant and equipment at two subsidiaries.

Outlook and guidance

• Priorities were profitable, sustainable growth, stronger balance-sheet performance, improved return ratios, agile operations and further technology and digitization investment.

• A strong order book, expanded capabilities, customer relationships and experienced teams were cited as support for navigating pandemic-related disruption.

• Strategy targets a capital-light EPC model through divestment of long-term transmission assets and non-core holdings, while focusing on disciplined bidding and margin accretion.

• International expansion will emphasize established markets and selected growth regions; non-T&D businesses are expected to grow faster than T&D internationally.