- 01 Nov 2021
- ICICIdirect Research
KALPATARU POWER REPORTS MUTED Q2 PERFORMANCE AMID SUPPLY CHAIN DISRUPTIONS, HIGHER COMMODITY PRICES
KPIL - 1297 Change: 25.50 (2.01 %)News: Kalpataru Power (KPTL) reported standalone revenue at Rs.1618 crore declining by 14% YoY due to delayed dispatches in T&D, supply chain issues. EBITDA came in at Rs.152 crore which declined by 24.8% YoY while EBITDA margins came in at 9.4% with decline of 80bps on QoQ basis and 130bps on YoY basis. Adj. PAT (net of exceptional items) came in at Rs.59.8 crore, down by 59.6% on YoY basis partly impacted by lower other income and higher effective tax rate.
Views: KPTL posted weak performance amid execution challenges, higher commodity price, supply chain disruptions posing near term challenges. However, order inflow remained muted due to delays in order finalization. Going forward, decent revenue visibility, significant reduction in debt on the back of transmission asset sale to further strengthen its balance sheet in the long run.