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Kalpataru Power gains after board OKs share buyback

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Kalpataru Power Transmission rose 1.64% to Rs 195.45 after the company said its board approved a proposal to buyback shares worth up to Rs 200 crore at a price not exceeding Rs 275 per share.

The company on Wednesday (20 May) announced that its board approved a proposal to buyback shares worth up to Rs 200 crore at a price not exceeding Rs 275 per share. At the maximum buyback price and for the maximum buyback size, the indicative maximum number of equity shares to be bought back would be about 72,72,727 equity shares, which is about 4.70% of the total number of paid-up equity shares of the company.

The company announced its Q4 earnings on Wednesday. On a consolidated basis, Kalpataru Power Transmission reported a 92.2% drop in net profit to Rs 13 crore on a 0.1% rise in net sales to Rs 3527 crore in Q4 March 2020 over Q4 March 2019. EBITDA declined 7% to Rs 386 in Q4 March 2020 over Q4 March 2019. EBITDA margin for Q4 March 2020 stood at 10.9%.

Revenue and PAT in Q4FY20 were impacted due to lower execution on account of COVID-19 and exceptional items related to impairment in subsidiary

Consolidated order book was at Rs 22,834 crore as on 31 tMarch 2020; LMG order book stood at Rs 1,152 crore as on 31 March 2020

Consolidated net debt increased by 7.13% to Rs 3458 crore in Q4 March 2020 from Rs 3228 reported in Q4 March 2019.

Commenting on the results, Manish Mohnot, MD & CEO, KPTL said, "Our manufacturing facilities have started working and more than 80% of our sites are operational at different productivity levels. The share buyback approved by the Board of Directors today reinforces our commitment to KPTL's shareholders. Over the past decade, we have built KPTL into one of the leading power transmission and infrastructure EPC Company, with a significant presence in each of the business vertical that we operate in. We are committed to our goal to be a focused EPC player and target to be a debt-free company by end of FY21."

Commenting on the results, Ram Patodia, CFO, KPTL said, "The situation ahead seems to be very challenging and requires a focused approach for managing cash flow and cost. However, our strong balance sheet and order book position provides us the confidence that we will overcome the COVID-19 challenge and emerge stronger. Further, we are progressing well on sale of our T&D assets and are confident to complete the process in FY21."

Further, the board also approved capital raising through issuance of secured/unsecured non-convertible debentures (NCDs) upto Rs 300 crore in one or more tranches.

Kalpataru Power Transmission is one of the largest specialized EPC companies in India engaged in power transmission & distribution.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 21 2020. 10:50 IST
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