Shares of KNR Constructions, a top engineering, procurement, and construction (EPC) services company, surged 10.6% today, hitting a new 52-week high of ₹309.80 per share. This rise follows strong performance in the March-ending quarter and the full fiscal year (FY24). The stock has climbed 23% in the past two months.
Highlights:
- KNR Constructions reported a consolidated profit after tax of ₹341 crore for Q4FY24, a 140% increase from ₹141 crore in Q4FY23 and a 151% rise from the previous quarter’s ₹135 crore.
- Revenue for Q4FY24 was ₹1,414 crore, up from ₹1,245 crore in Q4FY23. Annual revenue grew to ₹4,429 crore, a 9% increase from ₹4,062 crore in FY23.
- The fiscal year net profit reached a record ₹752 crore, a 71% rise from ₹439 crore in FY23.
Key Projects:
- In March, the company received a ₹1,163 crore award for water supply and sewerage projects under AMRUT 2.0 in Nalgonda and Khammam.
- As of March 31, 2024, KNR’s order book was valued at ₹5,304.8 crore. Recent orders include a ₹575 crore and a ₹625 crore project for road construction in Karnataka, bringing the total order book to ₹6,504.8 crore.
Segment Breakdown:
- 50% of the order book is for roads (HAM), 18% for other roads, 17% for irrigation, and the rest for pipeline projects.
Future Outlook:
- The government plans to build 23 new national highways by 2025, with private sector contributions expected to be significant.
- Expansion of national highways is set to reach 16,000 km in 2023–24, progressing at 45 km per day.
- The government also aims to provide piped water to rural households, with a capital expenditure target of 12.6 trillion rupees for water infrastructure.
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