Views on KNR Constructions Limited 1QFY2016 Results - Angel Broking

Views of Mr. Santosh Yellapu (Sr. Research Analyst - Infrastructure, Angel Broking) on KNR Constructions Limited 1QFY2016 Results:

Disappointing set of 1QFY2016 numbers

"KNR reported standalone sales of INR 171cr, down 27.6% yoy (against our estimate of INR 195cr). Despite lower revenues, lesser sub-contracting helped the company report better than expected EBITDA margins at 14.4% (ahead of our expectation of 13.7%). Reported EBITDA were at INR 25cr, below our expectation of INR 27cr.

KNR reported PAT of INR 15cr (below our expectation of INR 16.6cr). Reported PAT margins were at 8.8%, slightly ahead of our expectation of 8.5%. Better than expected PAT margins is owing to (1) higher EBITDA margins and other income, and (2) lower than expected depreciation expenses.

Despite disappointing numbers, recent large ticket order wins give revenue visibility for the next few quarters. We continue to maintain our NEUTRAL rating on the stock."

Shares of KNR CONSTRUCTIONS LTD. was last trading in BSE at Rs.521.5 as compared to the previous close of Rs. 528.25. The total number of shares traded during the day was 3164 in over 260 trades.

The stock hit an intraday high of Rs. 549.5 and intraday low of 521.5. The net turnover during the day was Rs. 1690515.

Source : Equity Bulls

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