- 15 Nov 2022
- ICICIdirect Research
KNR CONSTRUCTIONS REPORTS BEAT ON ALL FRONTS
KNRCON - 343 Change: 3.95 (1.17 %)News:
KNR Constructions revenue on a standalone basis has improved 12.2% YoY to Rs 847.4 crore, mainly led by its strong order book position and pick-up in execution. EBITDA margin was elevated at 22.3% (up 10 bps YoY, up 375 bps QoQ) with softening in commodity prices and better project mix. Effectively, EBITDA at Rs 188.8 crore, was up 12.7% YoY. At the net level, a healthy operating performance coupled with muted tax outgo led to 12.9% YoY growth in PAT to Rs 107.6 crore
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Overall, KNR reported a strong performance during Q2FY23 with beat on topline and earnings driven by healthy execution. We currently have a positive outlook on the company considering a) strong execution, b) elevated level of margins, c) best in class working capital cycle, d) monetization of BOT/HAM assets, e) healthy balance sheet and f) strong return ratios
Impact:
Positive