In Tuesday’s intra-day trade on the BSE, shares of KNR Constructions hit a 52-week low of Rs 207.80, down 4% on margin concerns due to rising commodity costs, in an otherwise robust market.
Despite a solid performance in the January-March quarter, the stock of a civil construction company has dropped 20% so far in June (Q4FY22). The S&P BSE Sensex, on the other hand, was down 6% over the same time period.
The company increased overall sales by 11% year over year (YoY) from Rs 991 crore in Q4FY21 to Rs 1,102 crore in Q4FY22. Meanwhile, the EBITDA margin increased to 25.3% from 22.4% a year before. Profit after tax increased by 49% to Rs 141 crore from Rs 94.7 crore.
In the face of rising commodity prices, KNR’s management stated that it will strive to maintain an EBITDA margin of at least 15% to 16% in the future. Bitumen prices have climbed by about 35% to 40% since April 2021, while steel costs have grown by 20% to 25%.
Engineering, procurement, and construction (EPC) services are provided by KNR Constructions, one of the leading businesses in the industry. Roads and highways are the focus of the company’s key initiatives. It has a strong presence in irrigation and the administration of urban water infrastructure. The company had an order book position of Rs 9,001 crore as of March 31, 2022, with Rs 6,791 crore from the road sector and Rs 2,210 crore from the irrigation sector.
“The current order book position is healthy, with a clear view of execution over the next two and a half years. The Bharatmala project’s extensive project pipeline and ready DPR will speed up the project awarding process in the future. We expect an additional order book inflow of Rs 4,000 to Rs 5,000 crore in FY23 as a result of this “According to the management.
Apart from that, during the quarter, the income tax authorities conducted searches at KNR’s numerous business locations. Until now, there has been no formal communication from the department. The company’s financial position, however, will not be impacted, according to management. As a result, no provision has been made for any potential responsibility.
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