KNR constructions (KNR), reported Q1FY21 numbers. Revenue grew by 3% YoY to INR 480 cr. Despite the pandemic playing spoilsport

With COVID-related disruptions continuing to persist in 2QFY21 as well and monsoon further slowing down execution pick-up, it is expected to ramp up to ~80% in 3QFY21 only. Moderation in working capital is seen, but no further deterioration is expected in FY21. KNR Constructions: We maintain a BUY on KNR Constructions with an increased target price of Rs 300/sh (12x Jun-22E EPS, roll forward from Mar-22E). The company delivered another strong quarter with revenue/EBITDA/APAT ahead of our estimates by 28/36/109%. The order book (OB) is robust at Rs 78.5bn (~3.5x book to bill), having won two irrigation projects worth Rs 23bn. The NHAI bid pipeline is strong with KNR targeting Rs 20-25bn inflow for the rest of FY21. Labour availability is ~55-60% with execution run-rate of ~60-65%.

Q1FY21 revenue grew by 3.2% YoY despite Covid led disruption in execution & unavailability of manpower. EBITDA margin improved by 30bps YoY to 19.7% due to...

Team in the Asia Money poll 2020. Click Here Strong performance; outlook even stronger KNR Construction (KNR) has reported extremely good set of numbers for 1QFY21, driven by strong execution despite 3 weeks of lockdown and labour unavailability. Additionally, order inflows have also been strong, leading to better book to bill ratio at 3.2x compared to 2.33x in 4QFY20. Given the recent order inflow from the irrigation segment, the order book is now well diversified with more than 50% contribution from the high-margin irrigation segment. The company is targeting additional orders of Rs20-23bn from the road and irrigation segments each. Return to normal...

Considering strong execution, best in class WC, monetisation of BOT/HAM assets, healthy balance sheet, strong return ratios, we maintain BUY on the stock with revised SoTP TP of | 300. We will closely monitor irrigation receivables, execution that could be a key trigger for upgrade/downgrade....

19 August 2020 KNR Construction (KNR) outperformed in terms of execution by reporting revenue growth v/s our expectation of 35% YoY decline. The EBITDA margin expanded YoY on account of the rising share of higher margin irrigation projects, resulting in a strong beat on earnings. Including L1 orders, the order book (OB) stood strong at INR78.5b, implying OB/rev at 3.5x and providing healthy revenue visibility. KNR continues to surprise with its steady performance. However, the working capital cycle has witnessed marginal deterioration. This is primarily on account of pending dues from the Telangana government, which have been stalled since Feb20 and currently stand at INR6.8b. The management hopes to receive INR4.4b within the next few weeks. Factoring the strong performance in 1QFY21, we increase our FY21/FY22E EPS by 28%/7%. We maintain our (b) the book value of road assets.

We broadly maintain our revenue estimates however, we increase our EBITDA margin estimates by 48/ 50 bps for FY21E/ FY22E factoring Q1FY21 results. We have sizably lowered our depreciation estimates and increase our tax rate and accordingly increased our PAT estimates by 10.9%/ 10.4% for FY21E/ FY22E. Labour availability currently stands...

Stake sale in KNR Walayar Tollways BOT project to Cube Highways is in final stage of negotiations and is expected to conclude in next two months. KNR Constructions posted strong results beating our & street estimates, despite Covid-19 pandemic impacting execution. Margins were better with...

With fasterthanexpected rampup in operations and entire order book (current) coming under execution during H2 FY21, we have marginally increased our revenue estimates for FY21/FY22....

Q4FY20 revenue declined by 6% YoY due to Covid led disruption in execution while PAT declined by 27% YoY. EBITDA margin improved by 161bps YoY to 21.7% due to...

Its penchant to deliver better than expected on execution and margins continued even during the Covid-impacted Q4. More inspiring were pruned gross and net debt, implying management continues to strike a fine balance between the income statement and balance sheet. With its sound strategy intact, we see the Covid-disruption as short-lived, and KNR recovering from this largely unscathed (consequently, better placed). It also appears insulated from an expected near-term slowdown in ordering, thanks to the recently added irrigation orders....

Team in the Asia Money poll 2020. Click Here Better off to be with leader in turbulent times KNR Construction (KNR) reported good set of numbers for 4QFY20, revenue at Rs6.8bn declined by 5.6% YoY and was in line with consensus estimate. However, EBITDA increased by 1.9% YoY to Rs1.5bn as EBITDA margin was higher than expected at 21.7% (+160bps YoY). Adj. PAT declined by 27.1% YoY to Rs672mn primarily due to lower other income and higher finance and tax expenses. Revenue, EBITDA and PAT were 1.2%, 21.6% and 29% ahead of consensus estimates, respectively. For FY20, KNR reported revenue of Rs22.4bn, up 5.0% and EBITDA of Rs4.9bn, up...

KNR's order book was at | 5,229.7 crore as of Q4FY20. Including the Palani HAM project and newly won irrigation orders, total backlog at ~| 7888 crore, provides strong revenue visibility of 2.5-3 years. Additionally, the company has bid for state highway annuity project in Tamil Nadu (~| 500 crore) and is looking to bid for five to six HAM projects in NHAI in FY21, whenever bidding opens. Consequently, the company is looking forward to...

Out of its Portfolio of 5 HAM Projects, a) KNR Srirangam has achieved 37.4% physical progress,b)KNRTirumalaachieved54.4%,c)KNRShankampetachieved43.7%andd)KNR Somwarpeth achieved 6.9% progress. In the 5th HAM project namely KNR Palani, the companyhassubmittedfinancialclosuredocumenttoNHAIon22ndMay'20andexpectsto...

Transaction of stake sale in KNR Walayar Tollways BOT project with Cube Highways is expected to be concluded by 1HFY21E. KNRC reported strong revenues with healthy margins for 4QFY20, beating our estimates primarily due to strong execution in key projects and rising...

We expect a 17.6%/ 9.7% revenue/ Adj. PAT CAGR over FY20-22E, with EBITDA margins of 17.0% each for FY21E/ FY22E. Considering pick up in execution from Q3FY21E, healthy return ratios, a well-managed balance sheet, comfortable working capital, low D:E, and quality management, we maintain BUY with a SOTP-based TP to Rs247 (12x FY22E EPS and 1.2x PB for HAM + BOT investment). We have excluded KNR Walayar Tollways valuation from our SOTP as KNR has signed a deal with Cube Highways for sale at EV of Rs5.3 bn....

12 June 2020 Though 4QFY20 revenues were lower than expectation, KNR Construction (KNR) outperformed on operating margins yet again. Higher interest outflow and depreciation owing to mobilization of HAM projects, coupled with (incl. The net cash balance sheet coupled with pending proceeds from monetization of road assets, provides key competitive advantage in bidding for newer projects. However, owing to the impact of COVID-19 related execution challenges in 1HFY21, we have cut our FY21E EPS by 25%, but raised FY22E EPS by 9%. We maintain our 4QFY20 revenue was down 6% YoY (17% below est.) to INR6.8b. EBITDA was flat YoY at INR1.5b (9% below est.); EBITDA margin came in at 21.7%, up 160bp YoY owing to higher contribution from high margin irrigation projects. Higher interest and depreciation cost coupled with lower other income led to 17% YoY decline in PBT to INR859m.

Construction remains one of the most severely impacted sectors due to the Covid-19 lockdown. The tolling at highways was stopped given the lockdown while execution of EPC/HAM projects has come to a blanket halt amid unavailability of labour and raw materials. We expect labour unavailability to persist even once the lockdown is lifted as it could take time for remobilisation of labourers. Also, even if the work at project sites resume within one or two weeks post the lockdown, the onset of the monsoon season from Q2FY20E could slow down execution, going ahead. Amid these...

Construction remains one of the most severely impacted sectors due to the Covid-19 lockdown. The tolling at highways was stopped given the lockdown while execution of EPC/HAM projects has come to a blanket halt amid unavailability of labour and raw materials. We expect labour unavailability to persist even once the lockdown is lifted as it could take time for remobilisation of labourers. Also, even if the work at project sites resume within one or two weeks post the lockdown, the onset of the monsoon season from Q2FY20E could slow down execution, going ahead. Amid these...

KNR Constructions (KNRC) continued to report robust operating performance in 3QFY20 despite lower-than-expected revenue booking. While revenue grew by 24% YoY to Rs5.6bn vs. our estimate of Rs6bn, EBITDA witnessed a stellar 38% YoY growth to Rs1.24bn vs. our estimate of Rs1.09bn. Adjusted for Rs37mn claim received for arbitration claim under revenue, EBITDA margin stood higher at 21.6% vs. 20.1% in 3QFY19 and 19.7% in 2QFY20. A meaningful increase in depreciation (led by higher capex in irrigation) and interest expenditures (due to mobilisation advances) and lower other income resulted in muted PBT of Rs588mn (-1% YoY and -35% QoQ). Further, KNRC's adjusted PAT declined by 14% YoY to Rs445mn owing to higher tax expenses....