KNR Constructions (532942) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 delivered strong profit growth, with standalone net profit at ₹13,389.26 lakhs and consolidated net profit at ₹17,257.84 lakhs, driven by arbitration claims and dividends from associates.

• Consolidated revenue for Q1 FY25 was ₹98,499.73 lakhs, with EBITDA up 29% YoY to ₹2,786 million and PAT up 25% YoY to ₹1,660 million.

• Order book as of June 30, 2024, stood at ₹49,215 million, with potential to rise to ₹61,220 million including pending Appointed Dates and new projects.

• Targeting ₹60,000-70,000 million in new order inflow by FY25 end, with a focus on roads, highways, and expansion into metro rail and railway projects.

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

Financial highlights

• Standalone Q1 FY25 revenue was ₹88,017.95 lakhs, EBITDA margin at 21.8%, and PAT margin at 15.2%.

• Consolidated Q1 FY25 revenue was ₹98,499.73 lakhs, EBITDA margin at 28.3%, and PAT margin at 16.9%.

• Working capital days at 78 as of June 30, 2024; net working capital days at 53.

• Consolidated debt increased to ₹15,320 million (from ₹12,200 million in March 2024); net debt/equity at 0.41x.

• Arbitration claim of ₹6,088 lakh recognized as revenue; dividend of ₹1,449 lakh from associate included in other income.

Outlook and guidance

• Revenue for FY25 expected to be flat or similar to FY24, with growth potential in FY26 if targeted order inflow is achieved.

• Margin guidance for FY25-26 is 15-16%, assuming stable input prices.

• Irrigation segment revenue targeted at ₹2,000-2,500 million for FY25.

• CapEx guidance for FY25 is ₹800-1,000 million.

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