Release Date: May 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- KNR Constructions Ltd (BOM:532942, Financial) reported a revenue growth of 7% year-on-year for FY25, reaching INR 4,753 crores.
- The company achieved an EBITDA margin of 34.2% for FY25, indicating strong operational efficiency.
- KNR Constructions Ltd secured new projects worth INR 2,000 crores, increasing their order book to INR 5,052 crores.
- The company completed a project 40 days ahead of schedule, earning a bonus of INR 3.26 crores.
- KNR Constructions Ltd is targeting an order inflow of INR 8,000 crores to INR 10,000 crores by the end of FY26, indicating a strong growth outlook.
Negative Points
- Net profit for Q4 FY25 significantly decreased to INR 25 crores from INR 198 crores in Q4 FY24.
- The company's net debt to equity ratio increased to 4.1x as of March 31, 2025, compared to 2.3x the previous year.
- KNR Constructions Ltd faced a show-cause notice from NHAI due to a partial damage incident, which could impact future project bidding.
- The EBITDA margin for Q4 FY25 dropped to 13.8%, lower than the company's usual target of 15% to 16%.
- The company is facing delays in receiving payments for irrigation projects, with INR 1,200 crores to INR 1,300 crores pending.
Q & A Highlights
Q: What is the current unbilled revenue as of March 2025?
A: As of March 2025, the unbilled revenue stands at INR968 crores. - K Venkataram Rao, General Manager - Finance and Accounts
Q: Can you provide details on the expected order inflow and bid pipeline for FY26?
A: We are targeting an order inflow of INR8,000 crores to INR10,000 crores. This includes projects from NHI, state levels, and MSRDC. We expect to receive cabinet approval soon, which will allow us to start execution in 2 to 2.5 months. - Kamidi Reddy, Chief Financial Officer, Whole Time Director
Q: What is the revenue guidance for FY26 based on the current order book?
A: With the existing order book, we can execute between INR2,500 crores to INR3,000 crores. Additional orders, such as the MSRDC project, could contribute INR300 crores to INR400 crores in the last quarter of FY26. - Unidentified Company Representative
Q: What are the expected EBITDA margins going forward?
A: We expect EBITDA margins to be around 13% to 14%. The margins may improve with new projects, especially in irrigation, which typically have better margins. - K Venkataram Rao, General Manager - Finance and Accounts
Q: What is the status of the irrigation receivables and the expected timeline for recovery?
A: We are actively pursuing the recovery of INR1,200 crores to INR1,300 crores in irrigation receivables. We have been in discussions with the authorities and expect resolution in the coming months. - Kamidi Reddy, Chief Financial Officer, Whole Time Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
