Why is Kalpataru Projects Share Price Rising?

Kalpataru Projects’ share price has nearly doubled, rising almost 100% over the past year. Over a 3-year period, the shares have surged by about 200%, providing significant returns to shareholders.

After the release of the company’s second-quarter results, Kalpataru Projects’ revenue for Q2 FY25 met their expectations. However, growth in project execution was hindered by slow payments from water projects, although this situation is expected to improve after the state elections. The company expects an annual pipeline of about ₹600 billion for domestic transmission and distribution projects over the next few years.

Q2 FY25 Results

Kalpataru Projects reported a 39.7% increase in net profit year-on-year, reaching ₹125.6 crore for the second quarter ending September 30, 2024, compared to ₹90 crore in the same quarter last year.

Revenue from operations rose by 9.1% to ₹4,930 crore, up from ₹4,518.4 crore in Q2 of the previous fiscal year, driven by strong project execution and a solid order backlog. At the operating level, earnings before interest, tax, depreciation, and amortisation (EBITDA) surged by 83.8% to ₹438.3 crore, compared to ₹238.4 crore a year earlier. The EBITDA margin improved to 8.9% from 5.3% in the same period last year.

Kalpataru secured new orders worth ₹835 crore, which included contributions from its international subsidiaries. For the year-to-date (YTD) FY25, total order inflows reached ₹11,865 crore, with an additional L1 position of over ₹7,000 crore.

About Kalpataru Power Transmission Ltd

Kalpataru Power Transmission Ltd is a global EPC (Engineering, Procurement, and Construction) company involved in various sectors, including power transmission and distribution, oil and gas pipelines, railways, and biomass power generation. In July 2023, the company acquired a 51% ownership stake in Fasttel Engenharia S.A. in Brazil, gaining management control through its wholly-owned subsidiary, Kalpataru Power Do Brasil Participações Ltda.

On November 5, 2024, Kalpataru Projects’ share price opened at ₹1,251.00 on the NSE and reached a low of ₹1,230.05.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.