Share price of one of the pioneers in integrated infrastructure and construction services in India moved up by 12.6 percent on BSE to hit an intraday high at Rs. 65.95 in the morning trading session of Tuesday, after reporting a rise in net profit of 110 percent for FY24.
With a market capitalisation of Rs. 5,256.24 crore, at 10:22 a.m., the shares of Patel Engineering Limited were trading in the green at Rs. 62.09, up by nearly 6 percent.
The fluctuations in the share prices were observed after the company announced the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Saturday.
The consolidated revenue from operations climbed by 16.8 percent YoY from Rs. 3,891.15 crore in FY22-23 to Rs. 4,544 crore in FY23-24 and grew by 26.6 percent QoQ from Rs. 1,061 crore in Q3 FY23-24 to Rs. 1,343.2 crore in Q4 FY23-24.
Patel Engineering’s net profit increased from Rs. 68.6 crore in Q3 FY23-24 to Rs. 141 crore in Q4 FY23-24, indicating a growth of 105.5 percent QoQ. On a year-on-year basis, the net profit increased by 110 percent from Rs. 143.7 crore in FY22-23 to Rs. 301.6 crore in FY23-24.
The consolidated operating EBITDA grew by 40.62 percent YoY from Rs. 1,689.54 crore in Q4 FY22-23 to Rs. 2,375.76 crore in Q4 FY23-24, while the operating EBITDA Margin increased from 14.02 percent to 17.7 percent, during the same period.
The order book of the company stood at Rs. 1.866.3 crore in FY23-24 with a total of 49 projects (2 ongoing projects) increasing from Rs. 1,021.5 crore in FY18-19, representing a CAGR growth of 12.81 percent, providing strong future earnings visibility.
The company is expecting a huge number of orders in FY24-25 post elections for which it has raised Rs. 400 crore via Qualified institutional placement (QIP).
The company has implemented strategies to reduce debt and strengthen its balance sheet, while the strategy of selling non-core businesses and focusing on core infrastructure projects has paved the way for company’s growth.
“The company has outperformed expectations with a stellar display of excellence compared to its prior performance. Witnessing substantial revenue growth across all business segments, our recent projects are
poised to catalyze a positive shift in our financial landscape,” Rupen Patel, Chairman & MD commented.
Further, the company’s Board approved the acquisition of a 10 percent strategic stake in Shail Tunnelling and Infra Private Limited, a start-up tunnel boring machine supply company, with a cost of acquisition not exceeding Rs. 51,000.
Since tunnelling is an ancillary business of Patel Engineering, this acquisition will help enhance its existing operations.
As per the April 2024 shareholding data available on the BSE, Vijay Kedia via Kedia Securities Private Limited holds 1.2 crore equity shares or equivalent to a 1.42 percent stake in the company.
The stock has delivered 147.2 percent of multibagger returns in the last one year and 15 percent of positive returns in the last six months. However, so far in 2024, the company has given 4.1 percent of negative returns.
Established in 1949, Patel Engineering Limited is a civil construction company specializing in the hydropower and irrigation segments. It is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures and other kinds of heavy civil engineering works.
The company has also executed a variety of infrastructure projects in technology-intensive areas like hydropower, irrigation & water supply, urban infrastructure, and transportation segments, especially in tunnels and underground works for hydroelectric and transportation projects primarily as civil contractors.
Written by Shivani Singh
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