Shares of Kalpataru Projects International Ltd. surged nearly 12% on Monday after signing three contracts worth approximately Rs 7,550 crore with Saudi Arabia's Aramco.
The three contracts are for the three packages of the third expansion phase of the Master Gas System Network, or MGS‐3, in Saudi Arabia with Aramco for a contract value of about Saudi riyal 3.4 billion, which is equivalent to Rs 7,550 crore.
The company's total consolidated order book rose 27% year-on-year to Rs 58,415 crore as of the fiscal year ended March 2024, with orders across its various segments, including transmission and distribution, oil & gas, and civil construction. In FY24, the company secured total orders worth Rs 30,022 crore, up 19%, with an additional L1 of Rs 5,000+ crore.
Before receiving this order from Aramco, the company had secured orders totaling around Rs 850 crore in FY25, with an additional L1 position of over Rs 5,000 crore.
For FY25, the company is targeting revenue growth in excess of 20%, with a profit before tax margin closer to 5% for the fiscal year. The company has not given order book inflow growth yet and would like to wait for the post-election clarity from the sectors in which there is a clear focus. It will release guidance in Q1 FY25.
Kalpataru Projects Q4 Result Highlights (Consolidated, YoY)
Revenue up 22.3% to Rs 5,971 crore. (Bloomberg estimate: Rs 6,098 crore)
Ebitda up 36.1% to Rs 452 crore. (Bloomberg estimate: Rs 541.2 crore)
Margins at 7.6% versus 6.8% (Bloomberg estimate: 8.9%)
Net profit up 20.7% to Rs 169 crore. (Bloomberg estimate: Rs 208 crore)
Board recommends dividend of Rs 8 per share
Key Levels To Watch
Support: Rs 1,147 (one-week low)
Analyst Recommendation
Shares of the company surged to 11.96% before paring gains to trade 5.91% higher at Rs 1,266.50 apiece as of 10:15 a.m., compared with a 0.26% decline in the benchmark S&P BSE Sensex.
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