KNR construction shares decline after a steep fall in profits for Q3!

KNR construction had a weak Q3 where revenue grew 16.32%, but net profit declined 53%.

This mid-size leading road construction company in the south, KNR construction has declined more than 5% in the last 5-days. This action is due to anticipation of Q3 results, where the company did not meet the expectation, revenue grew 16%, but net profit declined 53%. 

Q3 earnings report:  

In Q3FY22, on a consolidated basis, KNR construction revenue grew by 16.32% YoY to Rs 854.64 crore from Rs 734.72 crore in Q3FY21. On a sequential basis, the top-line was up by 1.49%. 

PBIDT (Ex OI) was reported at Rs 139.55 crore, down by 20.97% as compared to the year-ago period, as a result, the corresponding margin was reported at 16.32%, contracted by 770 basis points YoY. This is due to a significant increase in other expenditure from Rs 95 crore in the previous year same quarter to Rs 171 crore this quarter. 

PAT was reported at Rs 42.12 crore, down by 53.72% from Rs 91.02 crore in the same quarter for the previous fiscal year. The PAT margin stood at 4.92% in Q3FY22 contracted 746 basis points YoY in Q3FY22.

KNR Constructions Ltd, incorporated in 1995, is engaged primarily in the construction of roads, bridges, flyovers and irrigation projects. The order book of the company stood at Rs 10,009 crore as of December 2021. Some of the customers include the National Highways Authority of India (NHAI), Ministry of Road Transport & Highways (MoRTH), Government of Telangana, Karnataka State Highway Improvement Project (KSHIP), Madhya Pradesh Road Development Corporation Ltd (MPRDCL), etc. 

At 11.45 AM, KNR construction was trading at Rs 300, down by 1.04% for the day.