KNR Construction Q1 Review - Robust Execution: Prabhudas Lilladher
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Prabhudas Lilladher Report
KNR Construction Ltd. posted strong results beating our and street estimates, despite second wave of pandemic impacting execution.
Margins were better with rise in share of high margin irrigation segment (28% in the revenue mix).
Currently labour availability stands at pre Covid-19 levels and execution is expected to garner pace further.
Working capital cycle has reduced to 66 days (versus 82 days QoQ) owing healthy cash collection.
Dues from Telangana government pertaining to irrigation stand at Rs 6.5 billion (of which Rs 2.7 billion is billed), expect to receive payments within next two to three months.
With this and conclusion of Cube deal, KNR Construction would substantially improve its working capital cycle.
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