Kalpataru Projects International Ltd. share price target

results. Revenues came in at | 1931.4 crore, up 29.1% YoY, above our estimate of | 1751.5 crore. On a consolidated basis, revenues grew 15% while PAT grew 77% due to the better performance of developmental assets and interest rate reduction EBITDA came in at | 209.2 crore with EBITDA margins of 10.8%, marginally below our estimate of 11.0%, on account of a higher-thanexpected increase in employee expenses and raw material expenses KPTL reported PAT of | 104.8 crore, in line with our estimate of | 104.8, up 17% YoY. The effective tax rate has increased to 38.2%...

Even after surpassing the FY18 order-inflow guidance of Rs75-80bn, KPP has hinted 15-20% revenue guidance for FY19. We expect EBITDA margins in the range of 12-12.5%. While PGCIL backpedals, SEB/Railways and Pipeline may fill the void. With strong performance in 9MFY18, JMC Projects (JMCP) can match, if not exceed, 20% revenue-growth guidance in FY18. Cash-guzzling BOT portfolio could be divested. Company aims to improve RoCEby staying away from asset-heavy model. We roll our estimates to FY20. We expect Transmission business 13% CAGR over the next two years. With competitive intensity and international exposure, we...

ICICI Securities Ltd | Retail Equity Research Kalpataru power (KPTL) reported decent set of Q3FY18 results. Revenues were ahead of our estimates whereas marginal miss on...

Robust Earnings Visibility on High Order Book Led by better execution in T&D; business, standalone revenue of Kalpataru Power Transmission (KPTL) grew by 24% YoY to Rs14.17bn in 3QFY18. Following the negative impact of GST on revenue in earlier quarters, revenue from T&D; increased by 12% YoY owing to healthy execution. Notably, revenue from Railways and Piping business grew by 65% YoY and 150% YoY, respectively. Aided by lower interest and depreciation cost, and marginal improvement in operating margin, KPTL's PAT grew by 30.1% YoY to Rs752mn. At subsidiary level, JMC's revenue grew by 29.0% YoY to Rs7.0bn owing to improved project execution. Further, led by higher utilisation levels (82%), Shree...

ICICI Securities Ltd | Retail Equity Research Kalpataru Power (KPTL) is on a strong footing across business verticals. The company is well diversified across geographies and business verticals, which we believe are all at an inflection point and ensure a strong performance, going ahead, for the company. The standalone business with a backlog of | 9260 crore ensures strong revenue CAGR of 14.8% in FY17-20E. The key catalyst for strong revenue growth is the handsome scalability achieved in the infrastructure segment (railways &...

Earnings Continue to Remain Robust on High Order Book Despite GST headwinds, Kalpataru Power Transmission (KPTL) managed to report 7.0% YoY revenue growth in 2QFY18, in line with our estimate. Aided by lower interest cost, depreciation cost and marginal improvement in operating margins, KPTL's PAT grew by 23.7% YoY to Rs715mn. Revenue from railway and pipeline business grew by 50% YoY and 24% YoY respectively. However, T&D; segment reported a slower 4% YoY growth owing to execution challenges. Its overall operating profit grew by 8.9% YoY to Rs1.3bn, while EBITDA margin expanded by 20bps YoY to 10.9% owing to cost rationalisation, productivity enhancement...

While acknowledging the transient impact of GST, KPP retains: (a) annual revenue growth guidance of 15%; (b) order-inflow guidance of Rs75-80bn; and (c) EBITDA margins in the range of 10.5-11%. While PGCIL may soften the awarding of projects this fiscal, SEB will fill the void. With strong performance in H1, JMC Projects (JMCP) can match, if not exceed, 20% revenue-growth guidance in FY18. With higher exposure to private-sector, we, however, remain cautious. Yet the key lies in the fate of cash-guzzling BOT...

Standalone Order Book Continues to Remain Robust KPTL's standalone order book continues to remain robust at Rs97.5bn (1.9x FY17 revenues) as of Jun'17 out of which 43% are international orders which implies strong revenue visibility over the next 2 years. Further, KPTL has L1 position for orders over Rs25bn as of 1QFY18-end. While T&D; and Railways business account for ~73% and ~12% of KPTL's order book, respectively,...

JMC targets 15% revenue growth in FY18. With higher exposure to private sector projects, we remain cautiously optimistic. Further, we have revised the number downwards for asset heavy subsidiaries by 12-14% in FY18/19. This will contribute lower other income to standalone. With team in place, Shree Subham, has marched past EBITDA positive mark. With steep interest outgo, PBT is in red-albeit showing an improving trend. Without major change in estimates, we maintain HOLD. Strong growth in JMC soothes concerns: JMC reported 19% YoY growth in revenue at...

We roll forward our valuations to Jun-19 and reiterate BUY with a revised TP of Rs 426/sh (SA EPC at Rs 346/sh, 15x June-19E EPS). Kalpataru Powers (KPP) 1QFY18 revenue came in at Rs 11.7bn (+1.4% YoY) with T&D; revenues declining 3% YoY on back of deferrals due to GST. Growth was seen in Railways (+17% YoY) and Piping business (27% YoY). EBITDA margin improved 40bps to 11.7% on execution of high-margin Railway orders and cost control measures. APAT stood at Rs 705mn (+9.2% YoY). Order inflows increased to Rs 21.3bn (+8.7% YoY), leading to a robust closing order book of Rs 97.5bn (2.0x TTM revenues).