KNR Constructions Faces Financial Strain Amid Declining Sales and Rising Costs

KNR Constructions has recently undergone a financial trend adjustment, reflecting challenges in its performance metrics for the quarter ending March 2025. The company reported a significant decline in net sales, which fell to Rs 975.21 crore, marking a decrease of 31.03%. Additionally, the profit after tax (PAT) for the quarter was Rs 155.19 crore, down 56.1% compared to previous periods.
Despite these setbacks, KNR Constructions reported a higher PAT for the nine-month period, totaling Rs 858.25 crore. However, the company faced rising interest expenses, which grew by 67.63% to Rs 170.75 crore. This increase has impacted the operating profit to interest ratio, which is currently at its lowest level of 5.46 times. Other key indicators, such as the operating profit to net sales ratio and earnings per share, also reached their lowest points, indicating ongoing financial strain.

In terms of market performance, KNR Constructions has lagged behind the Sensex, with a year-to-date stock return of -38.87% compared to the Sensex's 4.24%. Over the past year, the company's stock has decreased by 30.29%, while the Sensex has gained 10.24%. These trends highlight the challenges faced by KNR Constructions in a competitive market environment.