After obtaining an order for power transmission projects worth ₹ 1,241 Cr, infrastructure stock rises by 4%.

After obtaining an order for power transmission projects worth ₹ 1,241 Cr, infrastructure stock rises by 4%. Kalpataru Projects International Ltd’s shares surged by over 4% after winning orders totalling Rs. 1,241 crore for power transmission and residential and commercial building projects.

Price Movement: During Tuesday’s trading session, Kalpataru Projects International Ltd.’s share price increased by almost 4%, closing at Rs. 1,367.25 per share, with an intraday high of Rs. 1,426.95 per share. Since then, the share price has decreased and is now trading at Rs. 1,387.15 a share.
One of the biggest engineering and construction companies in India, Kalpataru Projects International Limited (KPIL), has announced the receipt of fresh orders totaling Rs. 1,241 crore.
The new contracts cover residential and commercial building projects in India as well as projects in the Transmission and Distribution (T&D) sector, both in domestic and foreign markets.

Price Movement: During Tuesday’s trading session, Kalpataru Projects International Ltd.’s share price increased by almost 4%, closing at Rs. 1,367.25 per share, with an intraday high of Rs. 1,426.95 per share. Since then, the share price has decreased and is now trading at Rs. 1,387.15 a share.
One of the biggest engineering and construction companies in India, Kalpataru Projects International Limited (KPIL), has announced the receipt of fresh orders totaling Rs. 1,241 crore.
The new contracts cover residential and commercial building projects in India as well as projects in the Transmission and Distribution (T&D) sector, both in domestic and foreign markets.

Order Book: As of June 30, 2024, KPIL has a diverse order book worth Rs. 57,195 crore, which indicates a robust order intake and good growth visibility. The firm has an L1 status of about Rs. 5,000 crore and obtained orders worth Rs. 7,015 crore in FY25. Order inflows, which were mostly from Buildings and Factories (B&F) (28 percent), Transmission and Distribution (T&D) (61 percent), and Water (11 percent), showed increased margins in line with the company’s profitability objectives.

Management Thoughts: Manish Mohnot, MD & CEO of KPIL, commented on the news, saying, “We are happy with the robust ordering momentum.” Our order book has been considerably bolstered by these new orders, with YTD order inflows exceeding Rs. 11,000 crores. More crucially, our Transmission & Distribution (T&D) and Buildings and Factories (B&F) businesses account for about 80–85% of the new order inflows, including L1.

Financial Outcome: Kalpataru Projects recorded net sales of Rs. 4,587 crore for Q1 FY25, an 8 percent rise from Rs. 4,241 crore in the same quarter the previous year, according to its most recent financial update. But within the same time period, the company’s net profit decreased to Rs. 84 crore from Rs. 113 crore.

Overview of the Company: An important international Engineering, Procurement, and Construction (EPC) firm with headquarters in India, Kalpataru Projects International Ltd. specializes in infrastructure projects for a range of industries, including electricity transmission, oil and gas, railroads, and urban development.The firm has been in operation for more than 40 years, and its operations in over 70 countries attest to its significant worldwide presence and diverse project portfolio.

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