KNR Construction | Annual Report Update: Robust order book places KNRC on a strong footing
- KNRC witnessed a strong execution in FY22, with revenue growing 21% YoY to INR32.7b, and a healthy EBITDA margin of ~21%. Its order book currently stands at INR93.5b (2.8x FY22 revenue).
- Around 76% of the order book comprises of Road projects, and the balance consists of Irrigation projects. The order pipeline is decent, with the management expecting INR30-40b of project wins in FY23. It is looking at bidding in other regions within India.
- Due to the monsoon and delays in receivables from the Irrigation segment, the pace of execution is likely to be slow in the near term. As additional projects move into execution in the later part of FY23, the pace of execution is expected to improve in FY24.
- We expect margin to remain stable, with a reduction in input costs and execution of some high-margin irrigation projects. We maintain our Buy rating on the stock with a SoTP-based TP of INR310.
The Tata Group has started an exercise to evaluate options to consolidate AirAsia India and Vistara under Air India to bring operational synergies among the three airlines under its umbrella, sources said. Air India, which the group had taken control of in January after winning the bid to acquire the national carrier for Rs 18,000 crore in October last year, has set up a team under its Director of Operations, R S Sandhu, sources familiar with the development said. The team will evaluate synergies in operations between Air India Express and AirAsia India as well as between Air India and Vistara, they said.
- KNRC witnessed a strong execution in FY22, with revenue growing 21% YoY to INR32.7b, and a healthy EBITDA margin of ~21%. Its order book currently stands at INR93.5b (2.8x FY22 revenue).
- Around 76% of the order book comprises of Road projects, and the balance consists of Irrigation projects. The order pipeline is decent, with the management expecting INR30-40b of project wins in FY23. It is looking at bidding in other regions within India.
- Due to the monsoon and delays in receivables from the Irrigation segment, the pace of execution is likely to be slow in the near term. As additional projects move into execution in the later part of FY23, the pace of execution is expected to improve in FY24.
- We expect margin to remain stable, with a reduction in input costs and execution of some high-margin irrigation projects. We maintain our Buy rating on the stock with a SoTP-based TP of INR310.
The Tata Group has started an exercise to evaluate options to consolidate AirAsia India and Vistara under Air India to bring operational synergies among the three airlines under its umbrella, sources said. Air India, which the group had taken control of in January after winning the bid to acquire the national carrier for Rs 18,000 crore in October last year, has set up a team under its Director of Operations, R S Sandhu, sources familiar with the development said. The team will evaluate synergies in operations between Air India Express and AirAsia India as well as between Air India and Vistara, they said.
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