PL First Cut – Kalpataru Power (KPP) Q2FY24

PL First Cut – Kalpataru Power (KPP) Q2FY24 – Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd

Kalpataru Power (KPP) Q2FY24 Results First Cut – Healthy topline growth; miss on EBITDA margins and PAT front

Result summary

✳️Standalone revenue grew 15.4% YoY to ~Rs38.4bn (PLe ~Rs37bn), driven by continued execution momentum.

✳️Gross margins declined 173bps YoY to 21.2%, likely due to job mix.

✳️EBITDA grew 11.6% YoY to Rs3.1bn (PLe ~Rs3.3bn), with EBITDA margins contracting by 37bps YoY to 8% (PLe 9%), partly aided by lower other expenses as % of sales (5.9% vs 7.1% in Q2FY23).

✳️Adj. PAT grew 8.7% YoY to Rs1.1bn (PLe ~Rs1.4bn), impacted by higher interest cost (up ~13.3%, YoY) and higher effective tax rate (at 29.4% vs 28.3% in Q2FY23).

✳️At the CMP, the stock is currently trading at 16.2x/12.2x FY24/25E. We have ‘BUY’ rating on stock with TP of 732.