Kalpataru Projects Share Price Falls 5% Following Disappointing Q1FY25 Results

Shares of Kalpataru Projects International fell by 5% to ₹1,289 per share on July 30, following a weak performance in the April-June quarter (Q1FY25).

The real estate company reported a 26% year-on-year drop in consolidated net profit, which fell to ₹84 crore in Q1FY25 from ₹113 crore in the same period last year. Meanwhile, total income increased to ₹4,609 crore in Q1FY25, while expenses rose by 9% year-on-year to ₹4,472 crore.

The company's order book stood at ₹57,195 crore as of June 30, 2024, not including orders worth ₹838 crore secured in July 2024.

"We have shown a resilient performance in Q1FY25 despite challenges such as lower manpower availability and delays in collections due to typical seasonality and general elections. However, as we move into Q2 FY25, we are seeing a reduction in working capital intensity with better budgetary allocations," stated Manish Mohnot, MD & CEO of Kalpataru Projects. 

Kalpataru Projects is a leading specialised engineering, procurement, and construction (EPC) company involved in power transmission and distribution, buildings and factories, water supply and irrigation, railways, oil and gas pipelines, urban mobility (flyovers and metro rail), highways, and airports. The company is currently executing projects in over 30 countries and has a presence in over 70 countries globally.

Recently, the company, along with its joint ventures and international subsidiaries, secured orders worth ₹2,995 crore. These new orders are in the transmission & distribution (T&D), buildings & factories (B&F), and water business sectors.

This year, the stock of this real estate giant has surged over 88%, significantly outperforming the benchmark Nifty 50's 14% rise over the same period. Kalpataru Projects International share price reached a 52-week high of ₹1,427 per share on July 19, 2024.

The company announced it secured additional new orders worth ₹838 crore in July 2024, bringing the total order inflows to ₹7,015 crore so far in FY25. Furthermore, the company reported that its order book reached ₹57,195 crore as of June 30, 2024, marking an increase of nearly 21% year-on-year.