Kalpataru Projects receives favourable judgement from Arbitral Tribunal in NHAI case.

Following the announcement, shares of Kalpataru Projects were trading lower by nearly 2% at ₹1,343.80 per share.

The company stated that the claim amount, once received, will be material for the company. The Arbitral Tribunal has laid down the principles of computing the claims, net of premium payable, to WEPL. WEPL had invoked the arbitration against NHAI under the Concessional Agreement terms.

For the quarter ended June 30, 2024, Kalpataru Projects reported a 26% year-on-year (YoY) decline in its net profit to ₹84 crore. The company’s grew by 8% YoY to ₹4,587 crore.

Kalpataru Projects reported a 1% YoY decline in the company’s core earnings before interest, taxes, depreciation, and amortisation (EBITDA) to ₹378 crore. The core EBITDA margin for Q1FY25 contracted to 8.2% from 9% in the corresponding period last year. The net profit margin contracted 1.8% from 2.7% in the same period last year.

At the end of June 30, 2024, the company’s order book stood higher by 21% YoY at ₹57,195 crore.

Manish Mohnot, managing director and chief executive officer of Kalpataru Projects International, said that the company saw lower manpower availability and delays in collections due to seasonality and the general elections. In the coming quarter, the company expects to meet its target of net working capital of below 100 days. The company aims to achieve 20% YoY revenue growth in FY25.

“More importantly, most of the new orders secured are in the T&D and B&F business, which are at better margins and in-line with our focus to improve profitability going forward,” he said.

The company's shares have risen by nearly 88% since the beginning of the year, and the stock has gained over 113% in the past year.