KNR Constructions - Q1FY21 First Cut - ICICI Securities

(CMP - Rs. 238, MCap - Rs. 3342 crore)

KNR reported better than expected Q1FY21 led by resilient execution (notwithstanding Covid-19 impact) and superior margins which percolated to PAT level beat.

Q1FY21 earnings summary

- Standalone revenues came in at Rs. 479.4 crore, up 3.2% YoY (ahead of estimates of 9.5% decline) reflecting better than expected execution and ramp up across its projects

- EBITDA came in at Rs. 94.3 crore, up 4.8% YoY (higher than our estimate of Rs. 76 crore), driven by superior topline. The consequent margin was higher at 19.7% (up 30 bps YoY) and better than estimates of Rs. 18%

- The company reported a PAT of Rs. 39.8 crore (down 16.6% YoY) vs. expectations of Rs. 20.7 crore, with beat led by superior EBITDA and lower than expected depreciation

We await certain KPIs such as order book, inflows and debt etc. KNR execution, albeit muted on YoY basis, was better than expected on the operational front, and impressive amid Covid-19 led impact. We continue to like KNR given its comfortable debt and working capital. Superior execution remains its forte and topline and operating profit beat warrants earnings upgrade. We will soon come up with an update.

Shares of KNR CONSTRUCTIONS LTD. was last trading in BSE at Rs.240.15 as compared to the previous close of Rs. 227. The total number of shares traded during the day was 61496 in over 1934 trades.

The stock hit an intraday high of Rs. 243.55 and intraday low of 223.1. The net turnover during the day was Rs. 14487600.

Source : Equity Bulls

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