Patel Engineering reported a strong set of earnings for the June quarter, with higher profit and improved operating margins helping lift investor sentiment. Shares of the infrastructure and construction company gained over 3% in Monday's trade following the results.
At around 2:39 pm, the stock was trading at Rs 29.50 on the NSE, up 3.2% from its previous close after touching an intraday high of Rs 30.25.
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Profit Climbs 22%, Margins Improve
The company reported a consolidated net profit of Rs 98.5 crore for the June quarter, up 21.8% from Rs 80.9 crore in the same period last year.
Revenue from operations rose 3.9% year-on-year to Rs 1,281 crore, compared with Rs 1,233 crore a year earlier. While topline growth remained modest, Patel Engineering delivered a stronger improvement in profitability during the quarter.
EBITDA increased 9.1% year-on-year to Rs 180 crore from Rs 165 crore in the year-ago period. The EBITDA margin also improved to 14% from 13.4%, indicating better cost management and execution across its projects.
The sharper rise in operating profit compared with revenue helped drive the company's bottom-line growth during the quarter.
Stock In Focus After Earnings
The quarterly results kept Patel Engineering shares in focus, with the stock rising more than 3% during Monday's session.
Despite the day's gains, the stock has declined around 21% over the past year. However, it has recovered from its 52-week low of Rs 22 and remains below its 52-week high of Rs 41.32.
As of the previous trading session, the company had a market capitalisation of about Rs 2,820 crore and was trading at a price-to-earnings (P/E) multiple of 10.39.
Investors will be watching whether Patel Engineering can sustain its improvement in margins in the coming quarters, especially as execution across infrastructure projects gathers pace. Continued growth in profitability and order execution will remain key factors for the stock after its latest quarterly performance.
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