KNR Constructions' Q1 FY25 results show positive growth, PAT up by 139.9%

KNR Constructions, a midcap company in the capital goods industry, has recently declared its financial results for the quarter ending March 2024. According to the latest report, the company has shown positive growth in its financial performance, with a score of 14 out of 20, an improvement from the previous score of 10 in the last three months.

One of the key factors contributing to this growth is the company’s Profit After Tax (PAT), which has seen a significant increase of 139.9% year on year, reaching Rs 353.30 crore. This trend is expected to continue in the near term, indicating a positive outlook for the company.

Another positive aspect of KNR Constructions’ financials is its Operating Profit Margin, which is at its highest at 26.49% and has shown consistent growth in the last five quarters. This reflects the company’s improved efficiency and management of costs.

The company’s Net Sales have also reached its highest at Rs 1,414.00 crore in the last five quarters, with a positive trend in the near term. This is a testament to the company’s strong sales performance and market demand for its products.

KNR Constructions has also shown a strong Operating Profit (PBDIT) of Rs 374.51 crore, the highest in the last five quarters. This indicates the company’s ability to generate profits from its operations.

On the downside, the company’s interest costs have increased by 34.02% quarter on quarter, reaching Rs 37.07 crore. This could be attributed to increased borrowings, which may impact the company’s profitability in the long run.

Additionally, the company’s Non-Operating Income has also increased significantly, reaching its highest at Rs 125.25 crore in the last five quarters. While this may seem positive, it is important to note that this income may not be sustainable in the long term.

Overall, KNR Constructions has shown a positive financial performance in the quarter ending March 2024, with strong growth in key areas such as PAT, Operating Profit Margin, and Net Sales. However, the company needs to keep a close eye on its interest costs and non-operating income to maintain its profitability in the future. Based on these factors, MarketsMOJO has given a ‘Hold’ call for KNR Constructions’ stock.