On Monday, December 14, KNR Constructions informed the stock exchanges that a meeting of the board of directors of the Company is scheduled to consider declaration of bonus shares and other related issues.
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.
"With our strong balance sheet and proposed monetisation of assets, there shall be enough liquidity to bid for NHAI's new projects. Our committed, dedicated construction professionals and workers are our great supporting strength in achieving sustainable growth," the company said in financial year 2019-20 annual report.
In spite of a recent increase in receivables, Motilal Oswal Financial Services believe KNR Construction's strong balance sheet gives it a key competitive advantage v/s peers in bidding for newer projects and in terms of strong execution, despite financing challenges in the sector as the dependency on bank financing is minimal.
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