PL First Cut – Kalpataru Power (KPP) Q1FY24

PL First Cut – Kalpataru Power (KPP) Q1FY24 – Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd

Kalpataru Power (KPP) Q1FY24 Results First Cut – Healthy topline growth; Results below estimates

Result summary

✳️Standalone revenue grew 15.4% YoY to ~Rs36.2bn (PLe ~Rs39.2bn and consensus estimate of Rs38.9bn), driven by growth across segments except O&G.

✳️Segment: T&D grew 8.3% YoY to Rs14bn, Railways grew 21.4% YoY to Rs4.4bn, B&F grew 9.5% YoY to Rs10bn, Water grew 48% YoY to Rs9bn and Urban Infra grew 100% YoY to Rs1.5bn. While Oil & Gas segment declined 26.6% YoY to Rs2.2bn.

✳️EBITDA grew 17.2% YoY to Rs3.1bn (PLe ~Rs3.3bn and consensus estimate of Rs3.2bn), with EBITDA margins remaining broadly flat at 8.7% (vs ~8.5% in Q1FY23).

✳️Adj. PAT declined 22.7% YoY to Rs1.3bn (PLe ~Rs1.5bn and consensus estimate of Rs1.1bn), on account of lower other income amid high base (Rs290mn -down ~56% YoY on high base), higher interest cost (up ~23%, YoY) and higher effective tax rate (at 28% vs 21.3% in Q1FY23).

✳️Order inflow for Q1FY24 came in at Rs51.2bn. Order backlog stands at Rs473bn (3.2x TTM revenue) as on Q1FY24 and is L1 in orders worth Rs40bn.

✳️At the CMP, the stock is currently trading at 16x/12.1x FY24/25E. We have ‘BUY’ rating on stock with TP of 625.