KNR Construction - Robust Order Book, Strong Execution, Net Debt Free Balance Sheet Augurs Well: Motilal Oswal
KNR Construction witnessed a strong execution in FY22, with revenue growing 21% to Rs 32.7 bn and healthy Ebitda margin of ~21%.
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Motilal Oswal Report
In this report, we present key takeaways from KNR Construction Ltd.’s FY22 Annual Report.
KNR Construction witnessed a strong execution in FY22, with revenue growing 21% YoY to Rs 32.7 billion, and a healthy Ebitda margin of ~21%. Its order book currently stands at Rs 93.5 billion (2.8 times FY22 revenue). Around 76% of the order book comprises of road projects, and the balance consists of Irrigation projects.
The order pipeline is decent, with the management expecting Rs 30-40 billion of project wins in FY23. It is looking at bidding in other regions within India.
KNR Construction is expected to invest ~Rs 5.8 billion over FY23, FY24, and FY25 towards its equity commitment of ongoing hybrid-annuity-model projects, along with financial support for meeting cash flow mismatches in its underlying special purpose vehicles.
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