Q3FY21 Result Update - Kalpataru Power - ICICI Direct

For Q3FY21, KPTL's standalone revenue was at Rs. 1993 crore (our estimate of Rs. 2183 crore) merely growing 0.7% YoY on the back of steady execution across all businesses amid challenging economic conditions and labour availability constraints. EBITDA came in at Rs. 207 crore (our estimate of Rs. 231.4 crore), down marginally by 0.5% while EBITDA margins sustained at 10.4% with marginal decline of 10 bps YoY. Adjusted PAT (net of exceptional items) came in at Rs. 147.9 crore, up 16.5% YoY partly aided by reduction in interest expense, which declined 45% to Rs. 23 crore YoY. KPTL reported exceptional item worth Rs. 154 crore towards gain on sale of Alipurduar Transmission (ATL) and Jhajjar KT.

Valuation & Outlook

KPTL's strong order book with good traction in non-T&D business (railways, pipeline), improved subsidiary performance and operating leverage gains are expected to support consistent growth. Also, recent acquisition in Brazil to provide diversification in international T&D markets. Strategy to monetise non-core assets and utilise proceeds towards debt reduction and acquisitions in growing international markets would further strengthen balance sheet. We value KPTL on an SoTP basis and revise our rating from HOLD to BUY with a target price of Rs. 490 (earlier: Rs. 200) with base business at 10x FY23E.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_KalpataruPower_Q3FY21.pdf

Shares of KALPATARU POWER TRANSMISSION LTD. was last trading in BSE at Rs.369.2 as compared to the previous close of Rs. 364.2. The total number of shares traded during the day was 24390 in over 964 trades.

The stock hit an intraday high of Rs. 390.6 and intraday low of 368. The net turnover during the day was Rs. 9208450.

Source : Equity Bulls

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