Q4FY21 Result Update - Kalpataru Power - ICICI Direct

For Q4FY21, KPTL's standalone revenue came in at Rs. 2337 crore (vs. our estimate of Rs. 2762 crore) merely growing 1.5% YoY. The key reason for execution miss was disruptions faced by the company during the fag end of the quarter. On account of execution miss, EBITDA came in at Rs. 243 crore (vs. our estimate of Rs. 290 crore), down marginally by 4% YoY while EBITDA margins sustained at 10.4%, flat QoQ. Given the strong reduction in debt throughout FY21, interest costs came in Rs. 28 crore, down 39% YoY. Consequently, PAT came in at Rs. 130 crore vs. our expectation of Rs. 182 crore, mainly on account of slower execution pace.

Valuation & Outlook

Despite short term challenges amid pandemic and rising commodity prices, we believe KPTL's strong order book with good traction in non-T&D business (railways, pipeline), improved subsidiary performance would aid consistent growth in the medium term. Strategy to monetise non-core assets & utilise proceeds towards debt reduction and acquisitions in growing international markets would further strengthen its balance sheet. We value KPTL on an SoTP basis and maintain BUY rating with a target price of Rs. 470 (earlier Rs. 490) with base business at 10x FY23E EPS.

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Shares of KALPATARU POWER TRANSMISSION LTD. was last trading in BSE at Rs.379.1 as compared to the previous close of Rs. 378.4. The total number of shares traded during the day was 76681 in over 2373 trades.

The stock hit an intraday high of Rs. 403.35 and intraday low of 378.35. The net turnover during the day was Rs. 29589525.

Source : Equity Bulls

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