The shares of the infrastructure developer gained up to 3 percent after the company received a prestigious work order from Pune Municipal Corporation for Rs 297.83 crore.
With a market capitalization of Rs 5,637.08 crore, the shares of J. Kumar Infraprojects Limited were trading at Rs 745.00 per share, increasing around 1 percent as compared to the previous closing price of Rs 738.50 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after J. Kumar Infraprojects Ltd received a prestigious work order from Pune Municipal Corporation for the development of the Mula River from the Wakad bypass to the Sangvi bridge. The order is valued at Rs 297.83 crore and this work order will take place within 36 months.
Financial performance:-
Looking into J Kumar Infraprojects Ltd’s performance, revenue increased by 13 percent from Rs 1,131 crore in Q1FY24 to Rs 1,282 crore in Q1FY25. During the same period, net profit increased by 17 percent, from Rs 73 crore to Rs 86 crore.
Order book:-
As of June 30, 2024, the company’s total order book stands at ₹19,820 crores. The order book composition is diversified, with metro projects making up 26%, elevated corridor flyovers at 39%, road and tunnel projects at 24%, and other projects comprising 11%.
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Management guidance:-
Management is optimistic about achieving order inflows of approximately ₹8,000 crores for FY ’25, with ₹6,500 crores already secured as L1 projects. This strategic focus on large-scale infrastructure projects positions the company for sustained growth in the upcoming fiscal year.
Execution and Growth Outlook:-
The company anticipates a top-line growth of approximately ₹5,600 to ₹5,700 crores for FY ’25, reflecting a 15% year-on-year increase. Management expects significant contributions from new orders starting in Q3 FY ’25, positioning the company for substantial revenue growth in FY ’26.
Looking ahead, the company is poised for an unprecedented growth phase, with potential annual revenue additions surpassing historical averages. This optimistic outlook underscores the strategic initiatives and robust project pipeline set to drive sustained expansion in the coming year.
Capex plan:-
The company anticipates a capital expenditure (capex) of ₹450 to ₹500 crores over the next two years, primarily focused on the Chennai and Goregaon-Mulund Link Road (GMLR) projects. Additionally, regular maintenance capex is expected to range between ₹100 to ₹150 crores annually.
Margin Guidance:-
Current EBITDA margins are projected to improve from 14-15% to 15-16% over the next 6 to 8 quarters, driven by enhanced operational leverage and efficiency. This upward trend reflects the company’s commitment to optimizing performance and maximizing profitability.
Company Profile:-
J. Kumar Infraprojects Ltd specializes in the execution of contracts for different infrastructure projects such as transportation engineering, irrigation projects, civil construction, and piling work. The company’s services include metro, flyovers and bridges, highways and tunnels, civil and other infrastructure, and water.
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Written by:- Abhishek Singh
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