Rs 4,406 crore order book: This construction company received two back-to-back work orders of worth Rs 198 crore and 327 crore
The stock has given 32.23 per cent returns in the last 12 months.
KNR Constructions Limited (KNRCL) has informed the exchange about receiving a Letter of Acceptance for a significant irrigation project from the Irrigation & CAD Department. The project, titled "SRLIP to Paleru Link Canal – Package No. 13," involves earthwork excavation, embankment formation, concrete lining, and the construction of CM and CD structures.
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The work spans from Chimalapadu village in Singreni Mandal to Burda Raghavapuram village in Enkoor Mandal, covering 10.5 km within Khammam District, Telangana. The project has been awarded to KNR-ACPL-SVK Joint Venture, where KNRCL holds a 51 per cent stake, ACPL 20 per cent, and SVK 29 per cent.
The total contract value stands at Rs 198.28 crore (excluding GST). The project will follow an item rate contract model with a completion period of 24 months, along with a defect liability period of 2 years.
This project adds to KNRCL’s portfolio of infrastructure projects and is expected to enhance connectivity and irrigation facilities in the region.
Recently, The Company has received a Letter of Acceptance for SRLIP - Distributary Package No. 6. The project involves earthwork excavation, embankment formation, structure construction, and canal lining for distributaries D-1 to D-15 of the Sathupally Main Canal and D-16 to D-35 of the NTR Flood Flow Canal under the Sitarama Lift Irrigation Project in Telangana.
The contract is valued at Rs 327.89 crore (excluding GST) and follows an item rate contract model. The project completion timeline is 24 months, with an additional 2-year defect liability period
KNR Constructions Ltd, incorporated in 1995, is a Hyderabad-based infrastructure project development company providing EPC services in segments such as roads and highways, irrigation and urban water infrastructure management.
In the Quarterly Results of September 2024, the company reported revenue of Rs 1,944.86 crore, reflecting a year-on-year (YoY) growth of 87.28 per cent and a quarter-on-quarter (QoQ) growth of 97.45 per cent. The net profit stood at Rs 441.47 crore, showing a significant YoY increase of 199.55 per cent and a QoQ growth of 155.81 per cent. The net profit margin improved to 22.70 per cent, compared to 17.52 per cent in June 2024 and 14.19 per cent in September 2023.
For the financial year 2024, the company reported revenue of Rs 4,429.49 crore, registering a growth of 9.04 per cent compared to Rs 4,062.36 crore in FY23. The net profit for FY24 was Rs 1,106.96 crore, an increase of 72.68 per cent from Rs 590.10 crore in FY23. The net profit margin for FY24 stood at 13.32 per cent, higher than the 8.41 per cent recorded in FY23.
The stock has given 32.23 per cent returns in the last 12 months.
Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.