KNR Constructions' poor form continues; Q3 net profit, revenue, margins weaken

Infrastructure firm KNR Constructions Ltd on Thursday, February 5, reported a weak earnings report for the quarter ended December 31 with sharp year-on-year declines seen across net profit, revenue, and EBITDA, continuing the downward trend reported the previous quarter as well.

Net profit was plunged 58.7% to ₹102.8 crore for Q3 of the current financial year, down from ₹248.6 crore in the year-ago period.

Revenue also came under pressure, declining 12.4% year-on-year to ₹743.2 crore against ₹848 crore in the

corresponding period last year.

Operating performance weakened significantly, with EBITDA falling 34.8% year-on-year to ₹166.7 crore from ₹256 crore in the same period last year. Similarly, EBITDA margin declined by 770 basis points to 22.4% from 30.1% in the year-ago period.

However, there was a bright spot — during the quarter, the firm had received a letter of acceptance (LoA) for a ₹319.24-crore project from the Musi Riverfront Development Corporation to construct an iconic bridge across Mir Alam Tank in Hyderabad.

Shares of the company ended ₹148.85 apiece, which is 3.62% lower than the day's opening on the NSE.

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