Q1 2027 KNR Constructions Ltd Earnings Call Transcript
Key Points
- KNR Constructions Ltd (BOM:532942) received a Letter of Acceptance for a coal mining project at Kusmunda, Chhattisgarh, valued at INR 3,361 crores, expanding its order book diversification.
- The company's total order book, including new HAM and mining projects, stands at INR 15,234 crores, providing strong revenue visibility for the next 3-3.5 years.
- CRISIL reaffirmed the company's long-term bank facility rating at CRISIL AA/Stable and short-term rating at CRISIL A1+, reflecting a strong credit profile.
- The company completed the sale of its stakes in KNR Ramagiri Infra and KNR Palani Infra, generating total proceeds of INR 522 crores, which strengthens its balance sheet.
- Management expects revenue to grow to INR 2,200-2,300 crores in FY27 and exceed INR 3,000 crores in FY28, driven by new project starts and full operational capacity.
- The company is actively diversifying into railways, metro, and battery energy storage, with a strong pipeline of opportunities in the southern region.
- The road sector is experiencing subdued awarding activity, with NHAI awarding only 107 kilometers of projects in Q1 FY27, indicating a slow start to the year.
- Working capital days increased significantly to 133 days as of June 30, 2026, compared to 78 days as of March 31, 2026, indicating higher capital blockage.
- The company faces a substantial receivable of INR 1,300 crores from the Telangana irrigation project, with recovery dependent on government installment payments.
- The Banhardih mining project in Chhattisgarh is delayed by 8-10 months due to pending forest clearances, pushing its start to FY28.
- EBITDA margin for Q1 FY27 was boosted by a one-off gain of INR 46 crores from asset sales; excluding this, the margin was only 5.5%, below the guided 8-9% for the full year.
- The company plans significant capital expenditure of INR 350-450 crores in FY27 for mining equipment, which will increase depreciation and pressure near-term profitability.
Ladies and gentlemen, good day and welcome to KNR Constructions Limited, Q1FY27 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of rich performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. K. Venkata Ram Rao, General Manager, Finance and Accounts, KNR Constructions Limited. Thank you, and over to you, Mr. Rao.
Good morning, everybody. Thank you for joining us today on the call to discuss the financial results for Q1 FY27. Along with me, I have Mr. K Jalandhar Reddy, Executive Director and Strategic Growth Advisors, our investor relations advisors. We have uploaded results and investor presentation on our stock exchanges as well as on our company
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