During Thursday’s trading session, the shares of a prominent player in India’s infrastructure and EPC sectors surged hit a 5 percent upper circuit at Rs. 245.8 on NSE, after receiving a Power Substation Project worth nearly Rs. 34.6 crores from Hindustan Copper Limited.
With a market capitalisation of Rs. 310.2 crores, the shares of K2 Infragen Limited opened in the green at Rs. 245.8, as against its previous closing price of Rs. 234.1.
What’s the News:
According to the latest regulatory filings with the NSE, K2 Infragen Limited bagged an order worth Rs. 34.57 crore for the Augmentation of 132KV Main Receiving Station (MRS) at Malanjkhand Copper Project in Balaghat District, Madhya Pradesh.
The contract from Hindustan Copper Limited was awarded to Naresh Agarwal Constructions Private Limited and will be executed by K2 Infragen Limited.
This marks K2 Infragen’s first major order in the power transmission & distribution (T&D) segment.
Previous Orders:
On 17th July, K2 Infragen Limited secured a Rs. 33.41 crore contract by North Western Railway (NWR) for the design, supply, erection, testing, and commissioning of high-rise Overhead Equipment (OHE) for the Rewari-Kathuwas doubling project.
Under this initiative led by the Jaipur Division of NWR, K2 Infragen will contribute to delivering critical infrastructure upgrades. The project is set to be completed within 15 months, with an expected finish date of 30th October 2025.
Financials:
The company reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 63.3 percent, increasing from Rs. 66.55 crores in FY23 to Rs. 108.7 crores in FY24.
During the same period, the company’s net profit increased marginally from Rs. 11.3 crores to Rs. 12.5 crores, representing a growth of 11 percent YoY.
On a year-on-year basis, the EBITDA increased from Rs. 19.4 crores in FY23 to Rs. 21.42 crores in FY24, registering a growth of 11 percent YoY.
Order Book:
The company’s robust order book stands at Rs. 486 crores, and its order pipeline has grown to Rs. 900 crores, reflecting significant momentum in both domestic and international markets.
K2 Infragen aims to exceed Rs. 450 crore in revenue by FY26, driven by strategic expansion throughout India and key areas, including Africa and the Middle East.
Future Growth:
The company’s Power Transmission & Distribution vertical is poised for significant growth in the coming months, as preparations are underway for larger orders in an industry projected to expand at a CAGR of over 20 percent until 2030.
K2 Infragen possesses robust technical capabilities and financial resources necessary to execute large power transmission and distribution projects, including solar EPC projects.
K2 Infragen aims to position itself as an aggressive competitor in the Transmission & Distribution (T&D) and Railway sectors. The T&D projects include the construction of substations, OHE, transmission lines, and distribution networks, all crucial for enhancing India’s energy infrastructure and addressing the growing electricity demand.
The company is also exploring opportunities for international expansion through infrastructure projects in Africa and the Middle East, with initial projects expected to launch in FY25. Additionally, K2 Infragen is seeking a partnership with a major player in road infrastructure for a road development project under the Hybrid Annuity Model (HAM) in India.
Furthermore, the company is actively engaging in discussions for new orders, both domestically and internationally, in the domains of Water Supply Works, Road infrastructure, and T&D infrastructure domain.
This is anticipated to contribute ~Rs 800 crore to the FY25 order book, helping to create a cumulative order book exceeding Rs 1000 crore by the end of the current financial year.
About the Company:
Founded in 2015, K2 Infragen Limited is an integrated EPC company offering a comprehensive suite of services, encompassing project engineering from design to execution, and power engineering solutions tailored to the evolving power sector.
Written by Shivani Singh
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