KNR Constructions Limited — PPTs, 29-05-2025: Investor Presentation

1. Financial Highlights:

Standalone revenue dropped 35% QoQ to Rs. 851.2 Cr in Q4 FY25, with EBITDA down 45% to Rs. 117.5 Cr and margins contracting 250 bps to 13.8%. PAT fell sharply 63% QoQ to Rs. 75.2 Cr. For FY25, revenue declined 18% YoY to Rs. 3,358.7 Cr, EBITDA slipped 11% to Rs. 625.9 Cr, but PAT rose 47% to Rs. 725.7 Cr. Consolidated revenue also weakened, down 31% QoQ at Rs. 975.2 Cr; EBITDA fell 41% to Rs. 221.5 Cr, and PAT plunged 98% to Rs. 7.6 Cr. Balance sheet remains strong with net worth growing to Rs. 3,945 Cr standalone, minimal borrowings, robust investments, and steady working capital management.

2. Strategic Initiatives & Growth Drivers:

Secured appointed dates for two HAM projects in Karnataka worth ~Rs. 1,200 Cr combined. Completed a key highway project ahead of schedule, earning Rs. 3.26 Cr bonus. Focus is on expanding into elevated metro rail and railway construction to leverage India's infrastructure momentum. Heavy investments in plant & machinery (Rs. 1,438 Cr block) and an experienced workforce of 2,750 underpin operational strength and timely execution.

3. Business Developments:

Divested shareholding in Muzaffarpur toll projects, generating ~Rs. 46 lakhs. Continuing execution on major projects like grade separators in Coimbatore and Salem, and Telangana reservoir initiatives. Order book remains diverse with 8 HAM projects under bidding (~Rs. 9,618 Cr) plus BOT annuity and toll projects, totaling Rs. 5,051 Cr focused on roads and irrigation.

4. Market Position & Competitive Advantage:

With 25+ years in 12 states and over 8,700 lane kms executed, the company boasts strong ties with key infrastructure authorities. Known for timely or early project delivery yielding bonuses, it differentiates through a vast in-house equipment fleet and a skilled execution team. Deep South India presence (Telangana & Karnataka ~90% of order book) strengthens its competitive edge in large EPC and HAM projects.

5. Investor Implications:

Quarterly volatility and margin pressure require attention, but robust full-year PAT growth and a healthy balance sheet signal positive growth potential. Recent HAM awards and infrastructure expansion offer clear revenue visibility. Execution discipline and early project completions enhance confidence, while diversification into metro and railway segments could drive future upside. Key risks center on order inflows and execution amidst evolving macro factors.