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Kalpataru Power Transmission Q1 Review - Resilient Margins; All Eyes On Deleveraging: Dolat Capital

Kalpataru Power Transmission Q1 Review - Resilient Margins; All Eyes On Deleveraging: Dolat Capital

<div class="paragraphs"><p>Electrical power lines and pylons.&nbsp; (Photographer: Dwayne Senior/Bloomberg)</p></div>
Electrical power lines and pylons.  (Photographer: Dwayne Senior/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Kalpataru Power Transmission Ltd. delivered resilient standalone Ebitda margin of 10.2% (~120 basis points ahead of consensus estimate) as provisions of Rs 1.4 billion done for higher commodity prices in March 2021 offset the negative impact of $3 million (50% of annual estimate) in Q1 FY22 due to increased fright and logistics cost.

Despite in line operating performance, profit after tax came in 16% below consensus estimate owing to increased interest costs (up 21% QoQ) and higher tax rate (34%). 

Although order inflow during Q1 FY22 was subdued, Kalpataru Power has retained its FY22 guidance of Rs 90 billion given the healthy tendering visibility (~Rs 450 billion) from international transmission and distribution, railway and oil and gas.

Click on the attachment to read the full report:

Dolat Capital Kalpataru Power Transmission Q1FY22 Result Update.pdf

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