Why Kalpataru Projects stock surged 5% after Q2FY25 results; check details

Shares of civil construction company Kalpataru Projects International surged 4.81 per cent at Rs 1,234.85 per share on the NSE after the company reported a strong surge in net profits for the second quarter of financial year 2024-25 (Q2FY25). 

 

Kalpataru Projects reported a 39.7 per cent year-on-year increase in net profit, reaching Rs 125.6 crore for the second quarter ending September 30, 2024, up from Rs 90 crore in the same quarter last year.

 

Revenue from operations rose by 9.1 per cent to Rs 4,930 crore, compared to Rs 4,518.4 crore in Q2 of the previous fiscal year, driven by strong execution and a healthy order backlog.

 

At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda) soared by 83.8 per cent to Rs 438.3 crore, compared to Rs 238.4 crore a year earlier, while the (Ebitda) margin improved to 8.9 per cent from 5.3 per cent in the corresponding period last year.

 

Kalpataru secured new orders worth Rs 835 crore, which included contributions from its international subsidiaries. Year-to-date (YTD) FY25, total order inflows reached Rs 11,865 crore, with an additional L1 position of over Rs 7,000 crore.

 

As of September 30, 2024, Kalpataru’s consolidated order book expanded by 29 per cent year-on-year to Rs 60,631 crore.

 

The company has a total market capitalisation of Rs 19,654.36 crore. Its shares are trading at a price to earnings multiple of 36.62.

 

At 11:32 AM, the stock price of the company pared most of its gains and was up 2.69 per cent at Rs 1,209.90 a piece on the NSE. By comparison, the NSE’s Nifty50 was down 0.64 per cent to 24,182.55 level.

 

Kalpataru Projects International, part of the Kalpataru Group, is one of India’s largest diversified engineering and construction companies. The firm specialises in Power Transmission and Distribution (T&D), Buildings and Factories (B&F), Water Supply and Irrigation, Railways, Oil and Gas Pipelines, Urban Mobility (including flyovers and metro rail), Highways, and Airports.