This Infra stock, which deals in the business of construction of roads, bridges, highways, and flyovers on BOT, EPC, and Hybrid Annuity Model (HAM) basis, with High Operating Margins, plans & plans FY26 revenue guidance upto Rs. 4,000 crore. In this article, we will look at its business, financials, order book, and its future plans.
Share Price Movement
In Thursday’s trading session, KNR Construction‘s share price closed at Rs. 207.55 per share, which is 1.28 percent lower than the previous closing price of Rs. 210.25 apiece. The stock has given around 15.5 percent negative returns in the past year and underperformed the Nifty Index.
Business Segments
The company recognizes their operational revenue from Construction and Engineering activities as their sole segment as of December 2024 quarter.
Future Plans
KNR Constructions plans to secure Rs. 8,000 to 10,000 crore in new orders over the next 3 to 4 months. The company targets road, irrigation, and mining projects, including BOT and HAM models. They are actively bidding for large-scale NHAI and state government projects, while focusing on EPC and HAM contracts.
The revenue guidance growth was expected to be around a 10 to 15 percent decline. They aim to execute Rs. 3,500 to 4,000 crore in revenue in FY26 and increase execution in FY27. KNR expects to monetize one HAM by June end, and the other three HAM projects by December 2025.
They expect to recover Rs. 1,200 crore from Telangana’s irrigation dues (Rs. 600 crore in debtors & Rs. 600 crore in Unbilled Revenue). It plans to maintain an EBITDA margin of 15 to 15.5 percent and invest in strategic growth areas, including metro and railway projects.
Financials
In its latest filing for the quarter ending December 2024, the company reported a 14.85 percent decline in revenue, reaching Rs. 848 crore compared to Rs. 996 crore in Q3FY24. Its Operating Margin (EBITDA) stands at around 20.4 percent on a standalone basis for the Q3FY25. A major part of the expenses includes material cost, spreading and assortment expenses (Transporting, Storing & Material Handling, Labour costs for moving materials & others).
During the same period, net profit increased by 82.35 percent to Rs. 248 crore in Q3FY25, compared to Rs. 136 crore in Q3FY24.
Order Book Analysis
The company has an order book of Rs. 3,888.4 crore as of 31st December 2024 including Road, Irrigation and Pipeline projects. Segment wise, the order book includes 29 percent from Roads (HAM), 28 percent from Pipeline, 26 percent from Irrigation and 17 percent from Roads (Others).
Geographically, they receive all the orders from South India, led by Andhra Pradesh & Telangana, followed by Karnataka, Kerala and Tamil Nadu. Their order book comprises projects of 58 percent from State Government, 29 percent from Captive (HAM projects), 10 percent from Central Government and the remaining 3 percent from Others.
Company Overview
KNR Constructions Limited, founded in 1995, is a Hyderabad-based infrastructure development company providing EPC services for roads, highways, irrigation, and urban water projects. It specializes in engineering, procurement, and construction across various infrastructure segments in India.
Written by – Santhosh S
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