KNR Constructions rallies 9% as board approves 1:1 bonus share

Shares of KNR Constructions moved higher by 9 per cent to 347, hitting a fresh 52-week high, on the BSE on Friday after the company said its board has approved bonus share in the ratio of 1:1.

"The board of directors of the Company, at its meeting held today, has recommended issue of bonus shares to the members of the Company by capitalization of its securities premium reserves in the ratio of 1 bonus equity share for every 1 existing equity share held by the members as on 'record date' to be fixed hereafter for this purpose," KNR Constructions said in a BSE filing.

The Company will also seek the approval of members of the Company through postal ballot, inter alia, for increase of authorized share capital of the Company, it said.

In the past one week, stock of the construction & engineering company has rallied 17 per cent after the company on Monday, December 14, announced bonus issue plan. In comparison, the S&P BSE Sensex was up 1.6 per cent during the week.

In July-September quarter (Q2FY21), KNR Construction reported 85 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 153.9 crore. EBITDA (earnings before interest, taxes, depreciation, and amortization) margin remained strong at 26.1 per cent on account of the rising share of higher margin irrigation projects, resulting in a strong beat on earnings.

The company said its order book stood strong at Rs 8,550 crore, of which Rs 4,693 crore from road sector and Rs 3,862 crore from irrigation sector. The management also said the company would aim to add more business verticals to the organisation in the fields of construction of Elevated Metro Rail and Railway Projects.

At 01:51 pm, KNR Constructions was trading 6 per cent higher at Rs 338, as against a 0.11-per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped over two-fold as a combined 2.4 million equity shares had changed hands on the NSE and BSE till the time of writing of this report.