Kalpataru Projects International Limited (KPIL) has announced a strong order book of ₹64,682 crore as of September 30, 2023, demonstrating the company's solid position in the infrastructure sector. This robust order book provides a clear pathway for business growth in the upcoming quarters.

Financial Performance

For the quarter ended September 30, 2023, KPIL reported:

• Consolidated revenue of ₹6,528.57 crore, marking a significant increase of 32% year-over-year
• Profit before tax (PBT) saw a substantial rise of 71% YoY to ₹322.00 crore
• PBT margin improved by 110 basis points to 4.9%
• Consolidated profit after tax (PAT) stood at ₹237.39 crore, representing a robust growth of 89% compared to the same quarter in the previous year

Order Inflows and Segment Performance

The company has secured new orders worth ₹14,951 crore year-to-date, reflecting a growth of approximately 26% YoY. Additionally, KPIL is favorably placed in orders worth about ₹5,000 crore, mainly in the Transmission & Distribution (T&D) business.

Segment-wise performance:

• T&D business: 51% YoY increase in revenue
• Buildings & Factories (B&F): 20% YoY growth
• Oil & Gas: 21% YoY increase
• Urban Infra: 65% YoY growth

Balance Sheet and Working Capital

KPIL has been focusing on strengthening its balance sheet through prudent capital management:

• Consolidated Net Debt to Equity ratio: 0.46x as of September 30, 2023
• Standalone net working capital days: Reduced by 16 days YoY to 102 days

Management Commentary

Manish Mohnot, MD & CEO of KPIL, commented on the results: "We have delivered another quarter of strong performance, building on the momentum of the previous quarter. This quarter happens to be the best ever Q2 in terms of revenue and profitability, as our consolidated revenue grew by 32% YoY, PBT grew by 71% YoY with margin expansion of 110 bps to 4.9% and PAT grew by 89% YoY."

He further added, "Looking ahead, we remain committed to improve our project delivery capabilities, further strengthen our balance sheet and continue investing to scale high-growth business verticals."

Outlook

With a robust order book and strong financial performance, Kalpataru Projects International appears well-positioned to capitalize on opportunities in the infrastructure sector. The company's focus on improving project delivery capabilities and strengthening its balance sheet may contribute to its growth trajectory in the coming quarters.

Kalpataru Projects International Limited (KPIL) has reported a significant surge in its financial performance for the second quarter, demonstrating strong growth across key metrics.

Financial Highlights

KPIL's Q2 results showcase impressive year-over-year growth:

The company's net profit for the quarter stood at ₹2.40 billion, marking a substantial 92.00% increase from ₹1.25 billion in the same period last year. This growth in profitability underscores KPIL's operational efficiency and market strength.

Revenue rose to ₹65.30 billion, up from ₹49.00 billion in the corresponding quarter of the previous year, representing a 33.30% year-over-year increase. This significant revenue growth reflects the company's expanding market presence and successful project execution.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a notable increase, reaching ₹5.61 billion compared to ₹4.38 billion in the previous year's quarter, marking a 28.10% rise. This improvement in EBITDA indicates enhanced operational performance and cost management.

Margin Analysis

While KPIL demonstrated strong growth in absolute terms, there was a slight dip in the EBITDA margin:

The EBITDA margin decreased marginally to 8.60% from 8.88% in the previous year, a reduction of 28 basis points. This slight contraction in margin may be attributed to factors such as increased input costs or changes in project mix.

Corporate Developments

In a separate corporate announcement, KPIL's Board of Directors approved the extension of Counter Bank Guarantee(s) not exceeding USD 10 Million to lenders of Kalpataru IBN Omairah Company Limited, a subsidiary, up to September 30, 2027. This move may indicate ongoing support for the subsidiary's operations and financial commitments.

Additionally, the Board approved the appointment of Mr. Sriram Pechiappan as President - Group Assurance and designated him as Senior Management Personnel, effective October 31, 2025. This appointment may strengthen KPIL's leadership team and corporate governance structure.

Conclusion

Kalpataru Projects International Limited's Q2 results demonstrate robust growth in revenue and profitability, indicating strong market positioning and operational execution. While there was a slight decrease in EBITDA margin, the overall financial performance remains impressive. The company's strategic decisions, including support for its subsidiary and key management appointments, suggest a focus on long-term growth and organizational strengthening.

Investors and stakeholders may view these results positively, as they reflect KPIL's ability to generate substantial growth in a competitive market environment. However, it will be important to monitor the slight margin pressure in future quarters to ensure sustained profitability.