Consolidated sales for the quarter was down by 6% to Rs 3032 crore. But with OPM erode by 30 bps to 12.8%, the operating profit was down by 8% to Rs 388 crore. After accounting for higher other income, lower interest and higher depreciation, the PBT (before EO & Profit from share of Assoc) was down by 9% to Rs 202 crore. The share of loss from JV was flat at Rs 8 crore and the PBT (after SoPA) was down by 9% to Rs 194 crore. EO Expense was a profit of Rs 4 crore (nil in corresponding previous period) the PBT was down by 7% to Rs 198 crore. With taxation stand lower by 22% to Rs 59 crore, the PAT was up by 1% to Rs 139 crore. With MI being a loss of Rs 5 crore compared to a profit of RS 5 crore, the PAT was up by 9% to Rs 144 crore.

Half Yearly Performance

Sales for the period was down by 8% to Rs 3341 crore and that with 30 bps contraction in OPM to 10.7%, the operating profit was down by 10% to Rs 358 crore. Gained by 31% jump in other income to Rs 46 crore the PBIDT was down by 7% to Rs 404 crore. The interest cost was down by 26% to Rs 58 crore and the depreciation was up by 9% to Rs 58 crore. PBT was down by 5% to RS 288 crore. EO Exp was an income of Rs 14 crore compared to nil in the corresponding previous period. Thus the PBT after EO was flat at Rs 302 crore. With taxation stand lower by 12% to Rs 74 crore, the PAT was up by 4% to Rs 228 crore.

Consolidated sales was down by 10% to Rs 5362 crore and with OPM contract by 70 bps to 12.4%, the operating profit was down by 15% to Rs 666 crore. Eventually the net profit (after MI) was down by 19% to Rs 189 crore after accounting for higher OI, lower interest, higher depreciation, higher share of loss from associate, higher EO income, lower taxation and Rs 34 crore swing in MI to share of loss of Rs 22 crore.

Other developments 

Order Book of KPTL standalone as end of Sep 30, 2020 including that of Linjemontage of Sweden stood at Rs 12292 crore.  

YTD FY21 order inflows at Rs 3225 crore largely driven from orders in T&D business. Of the YTD FY21 order inflow about 76% is from T&D International; 22% T&D Domestic and 2% Railways. Received new orders of Rs 668 crores in Q3FY21 till date. In addition the company is also L1 in orders worth Rs 2400 crore.  

Operations return to normalcy at the end of Sep-20 as the lockdown is eased further; Majority of the projects currently operating at pre-COVID levels  

The Board of Directors of the Company in its meeting he!d on May 20, 2020 had approved a proposal for buyback of Equity Shares of the Company for an amount not exceeding Rs.200 Crore (Maximum Buyback Size, which shall exclude transaction cost of buyback) from the Open Market through Stock Exchanges (NSE and BSE) at the Maximum buyback price of Rs 2751- per equity share. The indicative number of Equity shares to be bought back at the Maximum buyback size would be 7272727 Equity Shares (if worked out at the maximum buyback price} which is about 4. 70% of the paid-up equity shares of the Company as on March 31, 2020. The buyback period commenced on June 01, 2020. During the half year ended September 30, 2020, the Company bought back 29.84,372 equity shares from the Open market through stock exchanges, out of which settlement of 200000 Equity Shares was pending as on September 30, 2020. Subsequent to the period ended September 30, 2020, the Company has further purchased 20, 11,890 number of shares till date.  

Exceptional items for the half year ended September 30, 2020 includes Gain on sale of investment in Jhafiar KT Transco Private Limited of Rs. 14 Crores (net of transaction cost) and for year ended March 31, 2020 includes Gain on sale of entire stake in investment in Kalpataru Satpura Transco Private Limited of Rs. 31 Crores and impairment of investment in two of the subsidiary companies of Rs. 7 Crores. 

Management Comment 

Commenting on the results, Mr. Manish Mohnot, Managing Director & CEO, KPTL said: "Our operating and financial performance has improved significantly over the previous quarter given relaxation of lockdown, improved labour availability and restored normalcy of supply chains. Our focus on business diversification as well as profitable execution has helped us in sustaining and delivering a reasonable performance in these challenging times. In addition, we are moving swiftly on completing sale of our remaining T&D assets and restructuring Road BOOT assets. We believe these steps will significantly help us to unlock capital and reinvest in future growth and profitability. On a consolidated basis, we have achieved around 60% of the targeted order inflows for the current financial year, and we are confident of surpassing our order inflow target for FY21."