Shares of KNR Constructions were trading lower on Thursday, February 6, after the company reported a weak set of earnings for the quarter ended December 31, with sharp year-on-year declines across profit, revenue, and operating performance. The stock slipped 2.59% to Rs 144.94 on the NSE in early trade, emerging as one of the top losers in the infrastructure space.
For the December quarter, KNR Constructions’ net profit plunged 58.7% year-on-year to Rs 102.8 crore, compared with Rs 248.6 crore in the same period last year. The sharp decline extended the downtrend seen in the previous quarter and weighed heavily on investor sentiment.
Revenue for the quarter also came under pressure, declining 12.4% year-on-year to Rs 743.2 crore, down from Rs 848 crore in the corresponding quarter last year. The muted topline performance reflected slower execution and continued pressure on the company’s core infrastructure projects.
Operating performance weakened significantly during the quarter. EBITDA fell 34.8% year-on-year to Rs 166.7 crore, compared with Rs 256 crore in Q3 of the previous financial year. As a result, EBITDA margin contracted sharply by 770 basis points to 22.4%, from 30.1% a year ago, highlighting margin stress amid lower revenue and higher cost pressures.
Despite the weak quarterly performance, the company reported a positive development on the order inflow front. During the quarter, KNR Constructions received a letter of acceptance (LoA) for a Rs 319.24-crore project from the Musi Riverfront Development Corporation for the construction of an iconic bridge across Mir Alam Tank in Hyderabad.
At the time of writing, KNR Constructions was trading below its previous close of Rs 148.79, within a day range of Rs 143.31 to Rs 145.90. The company’s market capitalisation stood at around Rs 40,760 crore, with investors closely tracking execution recovery and margin trends in the coming quarters.
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