KNR Constructions reports better-than-expected executionKNRCON - 284 Change: -0.55 (-0.19 %)
News: KNR Constructions' performance was better-than-expected on the topline front, which percolated to the bottomline beat. Standalone revenue improved 16.3% YoY to Rs 1175.6 crore (vs. I-direct estimate of Rs 1020 crore; 1% YoY growth). EBITDA margin was at 18% (down 255 bps) owing to higher proportion of water segment (higher margin) in the base. Effectively, EBITDA at Rs 212 crore, was up 2% YoY. At the net level, reported PAT at Rs 128.6 crore was up 14% YoY.
Views: Overall, KNR reported a better than expected operating performance. Key recent concern has been on slower collections from Irrigation segment as well as lower order inflows momentum. The company enjoys strong features such as execution record (almost every year has seen bonus receipts), elevated level of margins, best in class working capital cycle, already achieved monetization of BOT/HAM assets, debt free standalone balance sheet and strong return ratios.