Kalpataru Projects International Limited (KPIL), a leading global infrastructure EPC company, has announced strong financial results for the first quarter, demonstrating significant growth across key metrics.

Financial Highlights

• Revenue: KPIL reported a consolidated revenue of ₹6,171.00 crores for Q1, marking a substantial 35% year-over-year increase from ₹4,587.00 crores in the same quarter of the previous year.
• EBITDA: The company's EBITDA grew by 39% YoY to ₹525.00 crores, with the EBITDA margin improving to 8.5%, up from 8.2% in the same quarter last year.
• Net Profit: KPIL's consolidated net profit more than doubled, surging by 154% YoY to ₹214.00 crores, compared to ₹84.00 crores in the corresponding quarter of the previous year.
• Profit Before Tax (PBT): PBT witnessed a remarkable growth of 112% YoY, reaching ₹290.00 crores, with the PBT margin expanding by 170 basis points to 4.7%.

Operational Performance

• Order Book: As of June 30, KPIL's consolidated order book stood at a robust ₹65,475.00 crores, reflecting a 14% YoY growth.
• New Orders: The company secured new orders worth ₹9,899.00 crores year-to-date, indicating strong business momentum.
• Segment Performance: The EPC segment emerged as the primary revenue driver, contributing ₹6,045.00 crores to the total revenue.

Business Segment Overview

Management Commentary

Manish Mohnot, MD & CEO of KPIL, expressed satisfaction with the company's performance, stating, "The strong all-round operational and financial performance in Q1 has set a strong growth momentum for KPIL as we begin the new financial year. We have delivered highest-ever first-quarter revenue and profitability on back of well-planned diversification, healthy business mix and disciplined execution."

Financial Position

• Net Debt: The company's net debt decreased by 26% YoY to ₹2,765.00 crores.
• Working Capital: Net working capital days improved to 91 days as of June 30, down from 103 days in the previous year.

Future Outlook

KPIL remains optimistic about its growth trajectory, with a strong order book and robust business visibility across most of its segments. The company is confident in its ability to deliver targeted revenue growth and profitability for the current fiscal year and beyond, leveraging its diversified business profile and strong execution capabilities.

With its impressive Q1 results, Kalpataru Projects International Limited has demonstrated resilience and growth potential in the infrastructure EPC sector, positioning itself for continued success in the coming quarters.

Kalpataru Projects International Limited (KPIL) finds itself in the midst of a complex contractual dispute between its wholly-owned subsidiary, Wainganga Expressway Private Limited (WEPL), and the National Highways Authority of India (NHAI). The conflict has escalated with both parties issuing termination notices, raising questions about the future of their agreement.

Termination Notices Exchanged

On August 1, WEPL received a Termination Notice from NHAI, alleging default in premium payment. This move came shortly after WEPL had issued its own Termination Notice to NHAI on July 15, citing various contractual defaults by the authority. As a result, the Concession Agreement between the two parties stands terminated effective July 15.

Dispute Over Premium Payment

The crux of the disagreement lies in NHAI's demand for premium payment, which WEPL contends contradicts the principles established by a previous arbitration award. This award, dated July 31 of the previous year, had ruled in favor of WEPL on similar issues.

Financial Implications

NHAI has claimed INR 351.46 crore from WEPL, a demand that the company is actively disputing. Despite the significant sum involved, KPIL maintains that the dispute is unlikely to have substantial financial implications for the company. This confidence stems from the favorable arbitration award received earlier and the assessment of external legal advisers.

Legal Position and Next Steps

KPIL has expressed a strong belief in WEPL's legal standing, citing the previous arbitration award that addressed similar issues. The company is taking all appropriate legal measures to contest the dispute and ensure compliance with contractual conditions for a smooth project transfer.

Chronology of Events

The dispute has unfolded over several months:

• July 31 (previous year): WEPL receives a favorable arbitration award.
• June 25: NHAI issues an Intention to Terminate Notice to WEPL.
• June 28: WEPL responds with its own Intention to Terminate Notice to NHAI.
• July 15: WEPL issues a Termination Notice to NHAI, effectively ending the Concession Agreement.
• August 1: NHAI issues a Termination Notice to WEPL.

Market Impact

As the situation continues to develop, investors and market watchers will be keenly observing how this dispute may affect KPIL's operations and financial performance. The company's strong assertion of its legal position and the previous favorable arbitration outcome suggest that KPIL is prepared for a potentially protracted legal battle with NHAI.

The resolution of this dispute could have implications not only for Kalpataru Projects International but also for the broader infrastructure sector, potentially influencing how similar conflicts between private companies and government authorities are addressed in the future.