KNR Constructions Ltd
Construction & Engineering
FV – Rs 2; 52wks H/L –201.7/81.6; TTQ – 11.2 Lacs; CMP – Rs 184 (As On January 23, 2017);                      

            Market Cap – Rs 2600 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

• Promoter stake have decreased to 58.09% from 60.75% in June,2016
• On 13/12/2016 there was a stock split from Rs.10 per share to Rs.2 per share.

Standalone Financials and Valuations for H1 FY17

Valuation Parameters:

1. Long Term Debt to Equity – 0.91
2. ROE % – 18
3. Market Cap/Sales – 0.4

• As on 31st March, 2016, the order book stood at about Rs. 3463 Crs comprising of Rs. 3406 Crs in road sector and Rs. 57 Crs in irrigation projects.
• KNR’s mainstay for revenue is EPC orders for road projects. Its order book has been growing at a fast clip since 2015. It won new orders totalling ₹1,334 crore in 2016-17, taking the total outstanding orders to ₹4,579 crore as of September 2016.
• KNR sold two of its operational annuity-based BOT projects for ₹850 crore in November 2016. The cash will provide capital for construction, and the management has indicated that it is part of its strategy to focus on EPC business.

Overview:

• KNR Constructions Ltd is a multi-domain infrastructure project development company.
• The Company undertakes engineering, procurement and construction (EPC) contracts, as well as build-operate-transfer (BOT) projects across various sectors, such as construction and maintenance of roads, highways, flyovers and bridges.
• Its range of verticals also include irrigation projects, water management, agriculture and trading business.
• It has completed approximately 5,890 kilometers of projects across over 10 states in India.
• Its urban water infrastructure management project is Challaghatta Main Valley Project, which involves the remodeling of primary and secondary storm drains, bridges/culverts and related works in Challaghatta Main Valley in Bangalore City.
• The Company’s irrigation and water management projects include Shankara Samudram Balancing Reservoir, Eastern Kosi Canal system, Reservoir across Mathadivagu and Budpur Balancing Reservoir.

Ongoing Major Projects:

1. Bijapur – Hungung Section of NH – 13 – Karnataka
2. Lumding to Lanka section i/c Lamka Bypass of NH – 54 – Assam
3. Ganjam – Sunakhala of NH – 5 – Orissa
4. Madurai – Kanyakumari of NH – 7 – Tamil Nadu
5. Outer Ring Road , Hyderabad City

Bulk Deals:

Management:

• K. Narasimha Reddy – MD
• K. Jalandhar Reddy – CFO

Major Non – Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

The Company’s Net Profit after Tax and extraordinary expenses during the year was Rs. 126.39 crore as compared to Rs. 69.76 crore in FY15. This exceptional amount was due to Income tax refund of previous years on account of 80IA benefit and interest on tax refund classified as other Income.