- 30 May 2024
- ICICI Securities
KNR Construction: One-off aids topline, core performance muted
KNRCON - 331 Change: -3.00 (-0.90 %)News: KNR Q4 performance had certain arbitration claims and impairment provisions impacting topline, other income and other costs. Reported Standalone revenue was up 11.8% YoY to ₹ 1314 crore. Adjusted revenue was ₹ 1179 crore, up 0.3% YoY. Reported EBITDA margin stood at 16.3% (down 170 bps YoY) while Adjusted margin was flat at 18%. At net level, reported PAT at ₹ 198 crore, was up 54% YoY, owing to one-off gain. Adjusted basis PAT was down 2.6% YoY at ₹ 125.4 crore. The order book stood at ₹ 6745 crore, 1.7x book to bill. FY24 revenues at ₹ 4091 crore was up 9.3% YoY. Margins at 14.7%, was down 450 bps, owing to one-offs. PAT at ₹ 379 crore, was down 24% YoY.
Views: Order book (including new orders stood at ₹ 6505 crore, 1.6x book to bill. Key recent concern for KNR has been lower order inflows momentum and company has indicated its intent to diversify order book both geographically (outside south) and segment wise ( now looking to enter Railways and metro segment). 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 61 days), already achieved monetization of BOT/HAM assets, debt free standalone balance sheet and strong return ratios.
Impact: Neutral