J Kumar Infra gains 3%, hits 52-week high on solid Q4 results

In the past three months, the stock zoomed 55 per cent, as against 1 per cent decline in the S&P BSE Sensex.

Shares of J Kumar Infraprojects (JKIL) hit a 52-week high of Rs 254, up 3 per cent on the BSE in Tuesday’s trade in an otherwise weak market. The surge comes after the company’s profit after tax (PAT) more than doubled to Rs 74 crore in March quarter (Q4FY22), on back of healthy operational performance. The civil construction company had posted profit of Rs 33 crore in a year ago quarter.

The stock surpassed its previous high of Rs 250.75 that it had touched on May 4, 2022. In the past three months, it zoomed 55 per cent, as compared to 1 per cent decline in the S&P BSE Sensex. At 09:46 am; JKIL traded 1 per cent higher at Rs 249, against 0.7 per cent decline in the benchmark index.

Besides that, the company’s revenue from operations grew 12 per cent year on year (YoY) to Rs 1,114 crore from Rs 992 crore. Earnings before interest, taxes, depreciation, and amortization (EBIDTA) increased 52 per cent YoY to Rs 159 crore, whereas, margins improved to 14.3 per cent from 10.5 per cent in Q4FY21.

For the entire financial year 2021-22 (FY22), JKIL posted PAT of Rs 206 crore against Rs 64 crore in FY21. Meanwhile, revenues rose 37 per cent YoY to Rs 3,527 crore and EBITDA margins improved to 14.3 per cent from 12.1 per cent.

JKIL is a pure play on engineering, procurement and construction (EPC) company, having a niche in construction of urban infra projects including metros, flyover, bridges etc.

The company has total order book position of Rs 11,936 crore as on March 31, 2022. The order book inter alia includes metro projects (elevated and underground) that contributes around 61 per cent, whereas, flyover, bridges and roads projects contributes around 39 per cent. The company was awarded project from IRCON amounting to Rs 1,068 crore (excluding GST) in Q1FY23.

Moreover, the company has continued to focus its efforts on capital management and order book quality. Despite challenging enviroment, the company was able to trim its debt levels sequentially.

"We believe the order award will intensify in FY23. The company’s robust execution capabilities coupled with strong repository of asset base enabled efficient execution, which reflected in a strong revenue growth," the management said.