Kalpataru Power Q3 PAT slips 16% YoY to Rs 259 cr

Kalpataru Power Transmission reported a nearly 16% fall in consolidated net profit to Rs 259 crore in Q3 FY22 from Rs 308 crore posted in Q3 FY21.

Consolidated net sales grew 11% to Rs 3889 crore in Q3 FY22 from Rs 3501 crore posted in Q3 FY21. Kalpataru said healthy growth in consolidated revenue led by improving execution momentum in T&D and Civil businesses. Profit before tax slipped 15.1% to Rs 348 crore in Q3 FY22 over Q3 FY21.

The company's exceptional items in Q3FY22 included gain on sale of KMTL of Rs 262 crores,value of fixed assets of Shree Shubham Logistics written down by Rs 22 crores and an amount aggregating of Rs 86 crore for shortfall in termination payment and expected credit loss provided for Kurukshetra Expressway.

Core EBITDA declined by 5% to Rs 362 crore in Q3 FY22 from Rs 383 crore in Q3 FY21. EBITDA margin slipped to 9.3% in Q3 FY22 from 10.9% in Q3 FY21. Kalpataru said EBITDA margins continued to remain in healthy range despite elevated commodity prices and freight cost

Consolidated order book as at Rs 31,702 crore as on 31 Dec 2021. Meanwhile, net debt was lower by 13% year on year to Rs 2,044 crore at the end of December 2021.

Commenting on the results, Manish Mohnot, MD & CEO, Kalpataru Power Transmission said, We have delivered a robust performance at consolidated level with double-digit revenue growth, stable EBITDA margin, record order inflows including L1 and notable decline in net debt. Despite the challenging operating environment laden with inflated input prices and competitive pressure, we continue to drive value accretive growth in our chosen business verticals by expanding international presence and strengthening our market position with a cautious approach. This is reflective in our record order inflows and L1 position in core T&D, B&F and Water businesses along with widened international presence in three new countries during the year. As part of our strategy to strengthen our core EPC business, we have achieved divestment of T&D BOOT assets. Simultaneously, we are working on sustainable solutions for our Road BOOT assets and divestment of other noncore businesses. In the near-term, we expect the operating environment to continue to remain challenging. In this scenario, we will manage our business with agility, with continued focus on improving project delivery and high emphasis on maintain healthy margins. We will continue to drive consistent and profitable growth through strengthening core business verticals, scaling up international markets, cost management and optimal investments.

Kalpataru Power Transmission is amongst the leading engineering, procurement, and construction (EPC) companies. It is executing projects that delivers complete solutions covering design, testing, fabrication, erection and construction of transmission lines, oil and gas infrastructure and railways projects on a turnkey basis.

Shares of Kalpataru Power ended 2.65% lower at Rs 391.65 on BSE on Friday.

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