KNR Constructions (532942) Q2 24/25 earnings summary

Executive summary

• Q2 and H1 FY25 saw strong financial performance, with consolidated revenue up 87% YoY in Q2 FY25, driven by settlement income, arbitration claims, and robust project execution.

• PAT surged 306% YoY to INR 580 crore in Q2 FY25, reflecting exceptional income and operational efficiency.

• Significant cash inflows from settlement agreements and arbitration claims contributed to improved profitability.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024.

Financial highlights

• Q2 FY25 consolidated revenue rose 87% YoY to INR 1,945 crore; EBITDA up 276% YoY to INR 870 crore; PAT up 306% YoY to INR 580 crore.

• H1 FY25 consolidated revenue grew 45% YoY to INR 2,930 crore; EBITDA up 157% YoY to INR 1,148 crore; PAT up 170% YoY to INR 746 crore.

• Standalone net profit for Q2 FY25 was INR 334 crore, up 235% YoY; H1 FY25 net profit was INR 469 crore, up from INR 210 crore YoY.

• Standalone revenue for Q2 FY25 declined 6% YoY to Rs. 8,838 mn, while EBITDA margin improved by 99 bps to 18.6%.

• Standalone and consolidated results for H1 FY25 show higher net profit YoY, with key contributions from arbitration claims and settlements.

Outlook and guidance

• Targeting order inflow of INR 6,000–8,000 crore for FY25, with revenue guidance of INR 3,500–3,600 crore for FY25 and INR 4,500 crore for FY26, assuming timely order wins.

• EBITDA margin guidance remains at 16% for new orders, with a focus on maintaining profitability.

• Order book stands at INR 4,406 crore as of September 30, 2024, with additional INR 1,200 crore in new HAM projects yet to be included.

• Focus remains on timely project execution, expanding into metro rail and railway construction, and leveraging strong EPC capabilities.