More Stories

Informist, Tuesday, Dec. 17, 2024

 

Please click here to read all liners published on this story

--KNR Constructions ED: Aim for INR 80 bln of fresh orders in FY25
--KNR Constructions ED: Order book at INR 50 bln as of Sept-end
--KNR Constructions ED: Eyeing road, irrigation project tenders in Andhra
--KNR Constructions ED: Tracking 80-85 road projects to bid for in FY26
--KNR Constructions ED: See slow revenue growth in FY25 on weak order inflow
--KNR Constructions ED: May see spike in order inflow in FY26
--KNR Constructions ED: Infra cos may see good revenue growth from FY27
--KNR Constructions ED: Due diligence underway for sale of 4 road projects
--KNR Constructions ED: May get INR 12 bln equity by selling 4 road projects

By Narayana Krishna

 

HYDERABAD - KNR Constructions Ltd is targeting INR 80 billion of fresh orders in 2024-25 (Apr-Mar), Executive Director K. Jalandhar Reddy told Informist. "The revenue growth may be slow for FY25 due to weak order inflows in the last few quarters, but we are expecting order flow to improve, which would drive our growth next year onwards," Reddy said.

 

As of Sept. 30, KNR Constructions' order book was at INR 50 billion. The Hyderabad-based infrastructure developer is primarily focused on irrigation and road projects.

 

Reddy said the company is chasing 80-85 prospective road projects that might come up for bidding in FY26. The company, he said, was expecting a spike in new order inflows in FY26, as many state governments were gearing up to float tenders for roads and irrigation works. Order inflows were weak during the last several quarters due to elections to the Lok Sabha and several state assemblies, he said, adding that now that the elections were over, he was optimistic about an improvement in fresh orders.

 

Reddy said KNR Constructions is keen on tenders expected to be floated by the Andhra Pradesh government for roads and irrigation works, besides other infrastructure works around the capital, Amaravati. He said the company would bid for all road and irrigation works whenever an official announcement is made in this regard.

 

The N. Chandrababu Naidu-led Andhra Pradesh government has approved nearly INR 400 billion of development works, including pending works related to the Polavaram irrigation project, construction of a new building for the state assembly, high court and administrative complexes, besides new roads around Amaravati. The government is expected to begin tenders for various works from Monday.

 

Reddy said that apart from Andhra Pradesh, tenders from other states are also likely to support the revenue growth of infrastructure companies in FY27 and beyond.

 

KNR Construction is in the process of selling its stake in four road projects, for which the due diligence process is underway, Reddy said. The company may get nearly INR 12 billion of equity back into its accounts once the sale process is complete, he said. Reddy, however, declined to provide the details of the roads and the prospective buyers, as due diligence is in progress.

 

For Jul-Sep, KNR Constructions' net profit surged over threefold on year to INR 3.34 billion, while its revenue from operations fell 6.1% to INR 8.84 billion.

 

At 1319 IST, shares of KNR Constructions were at INR 347.70 on the National Stock Exchange, steady from the previous close.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.