Stake sale in KNR Walayar BOT to Cube Highways concluded at equity value of Rs3.85bn and company received first tranche of Rs3.1bn. KNR Constructions posted a strong set of numbers with revenues (up 10% YoY) and margins above our and street estimates. Labour availability and operational efficiency across project sites have been recovering gradually,...

Q2FY21 revenue grew by 10% YoY (in-line with estimate) as execution is picking up and man power reached 80% of preCovid levels. EBITDA margin declined by 239bps YoY to 20.6% due to higher sub-contracting and other expenses. Current order book stands healthy at Rs8,555cr which is 3.8x TTM revenue and provides visibility....

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 a revised SoTP TP of | 310. We will closely monitor irrigation...

Sale of BOT project makes balance sheet even stronger BUY KNR Construction (KNR) reported good set of numbers for 2QFY21, driven by strong execution as labour availability was better compared to the previous quarter. Additionally, order inflows were strong, leading to better book-to-bill ratio at 3.7x compared to 3.2x in 1QFY21 and 2.4x last year. Given the recent order inflow from the irrigation and road segments, the orderbook is now well diversified with more than 40% contribution from the high-margin irrigation segment. The company is targeting additional orders of Rs20-25bn in 2HFY21. KNR has completed the sale of its BOT asset KNR Walayar Tollways Pvt Ltd to Cube Highways for a total EV of Rs5.1bn, including...

KNR Constructions: KNR delivered yet another strong quarter with Rev/EBIDTA/APAT beat of 21/26/51%. Roads/irrigation segment contributed 77/23% to the revenue. The order book (OB) is robust at Rs 85.5bn (~3.6x book to bill), having won projects worth Rs 34.6bn (1HFY21)and Rs11.6bn (2QFY21). The NHAI bid pipeline is strong with KNR targeting Rs 30-35bn inflow for the rest of FY21. Based on social distancing site efficiency is ~80% with KNR expecting Rs 6/7bn of revenue for 3Q/4QFY21. Of the outstanding Rs 7.4bn irrigation receivable about Rs 5.5bn may get realized by Nov-20 and balance by Mar-21. We maintain a BUY on KNR with target price of Rs 390/sh (15x Sep-22E EPS). Phoenix Mills: Phoenix Mills (PHNX) reported revenue at Rs 2.1bn, -48%/+60% YoY/QoQ and 15% ahead of our estimate. However, lower-than-expected EBITDA margin and higher interest costs led to loss of Rs 359mn (vs estimated loss of Rs 137mn). All the retail assets have been operating since the end of the quarter. While consumption had reached to 40-55% across major malls in 2QFY21, it reached to 85% of pre-COVID level during the first week of November-20, aided by longer operational hours, opening of F&B; section and festive season. Revenue from commercial was at 94% of 2QFY20. Residential segment also posted strong recovery with sales of Rs 447mn. On the back of QIP in August, net debt reduced to Rs 34bn from Rs 43bn on Mar 20-end with net D/E at 0.72x (vs 1.15x at the end of FY20). Despite the near term challenges, we maintain BUY on...

We maintain our revenue estimates and slightly increase our EBITDA margin estimates by 213/ 49 bps for FY21E/ FY22E factoring H1FY21 results. Accordingly, we increased our APAT estimates by 17.0%/ 2.4% for FY21E/ FY22E. We introduce FY23E. Labour availability currently...

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%.

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....

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...

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...

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.

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...

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...

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....

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...