- 16 Aug 2024
- ICICI Securities
KNR Construction: Core performance weak; One-off claims aids earnings
News: KNR Q1 performance had certain arbitration claim and dividend which aided impacted topline, other income and earnings. Reported Standalone revenue was down 5.3% YoY to ₹ 880 crore. Adjusted revenue was ₹ 819 crore, down 11.9% YoY. Reported EBITDA margin stood at 21.8% (up 320 bps YoY) while Adjusted margin at 16.5%, down 230 bps. At net level, reported PAT at ₹ 134 crore, was up 21% YoY, owing to one-off gain. Adjusted basis PAT was down 26.7% YoY at ₹ 80.8 crore.
Views: Order book (including new orders stood at ₹ 6121 crore, 1.6x book to bill). The company enjoys strong features such as execution record (almost every year has seen bonus receipts), superior margins, best in class working capital cycle (net working capital of 78 days), already achieved monetization of BOT/HAM assets, debt free standalone balance sheet and strong return ratios. The company requires strong order inflow to report any growth in topline ahead.
Impact: Neutral