KNR Constructions (532942) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw strong growth in profitability, with consolidated revenue at INR 985 crore and net profit up 28% YoY to INR 166 crore; standalone revenue was INR 880 crore with net profit up 20% YoY to INR 134 crore.

• Robust order book of INR 4,922 crore as of June 30, 2024, with potential to rise to INR 6,122 crore pending Appointed Dates and additional INR 12,000 million in new projects not yet included.

• Focus on timely project execution, operational efficiency, and expansion into new infrastructure verticals, especially roads and highways.

• Board approved unaudited financial results for Q1 FY25 and scheduled the 29th AGM for September 26, 2024.

• Received significant arbitration claims and dividends from associates, impacting revenue and other income.

Financial highlights

• Standalone Q1 FY25 revenue was INR 880 crore; consolidated revenue was INR 985 crore; EBITDA margin improved to 21.8% standalone and 28.3% consolidated.

• Standalone net profit after tax for Q1 FY25 was INR 134 crore; consolidated net profit was INR 166 crore.

• Arbitration claim of INR 60.8 crore recognized as revenue, with INR 4.4 crore cost and INR 14.2 crore tax; dividend income of INR 14.5 crore from associate company.

• Working capital days at 78 as of June 30, 2024; net debt to equity at 0.41x, up from 0.36x in March 2024.

• Basic and diluted EPS (standalone) for Q1 FY25 was INR 4.76; consolidated EPS was INR 6.14.

Outlook and guidance

• Revenue for FY25 expected to be flat or match last year, with growth dependent on new order execution in Q3/Q4.

• FY26 growth expected if targeted order inflow is achieved; otherwise, muted growth of 5-10% possible.

• Margin guidance for FY25/26 is 15-16% if input prices remain stable.

• Targeting INR 6,000-7,000 crore in new order inflow by FY25 end.

• Board fixed record date for dividend payment as September 18, 2024.