KNR Constructions hits lifetime high on strong order book position

KNR Constructions has rallied 13% to Rs 726, extending its Tuesday 3% gain on the BSE, after the company said it has strong engineering, procurement and construction (EPC) order book position of Rs 4,258 crore as on June 30, 2016 (Q1FY17) comprising of Rs 3,528 crore in roads sector and Rs 730 crore in irrigation.

On August 8, KNR Constructions said that it bagged orders worth Rs 1334.70 crore towards 4 laning of Hubli-Hospet section NH-63 in the state of Karnataka. Since then, the stock risen 21% from Rs 600.

Meanwhile, the company has reported a healthy 87% year on year (YoY) jump in standalone net profit at Rs 30 crore for Q1FY17, on back of strong revenue growth. It had profit of Rs 16 crore in the same quarter year ago.

Total revenue grew 77% YoY to Rs 303 crore from Rs 171 crore in the year ago quarter.

KNR Constructions said the growth in turnover during the current quarter of financial year due to execution of the orders received in last year is now contributing to the top line.

The company’s EBITDA (earnings before interest, depreciation and taxes) margin unchanged at 14.4%.

At 11:33 am, the stock was up 12% at Rs 720 on the BSE, as compared to 0.14% rise in the S&P BSE Sensex. A combined 41,755 shares changed hands on the BSE and NSE so far.

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