MOSL: THE CORNER OFFICE (KNR CONSTRUCTION) — Growth concerns addressed-financing plans in place for new projects
THE CORNER OFFICE (KNR Construction) — Growth concerns addressed; Financing plans in place for new projects
Mr. K. Jalandhar Reddy, Executive Director
Mr. K. Jalandhar Reddy is the Promoter and Executive Director of KNR Constructions Limited. He has over 18 years of experience in the Highway and infrastructure sector. He started his career with the organization as a project Manager and was elevated to Executive Director on April 1, 1997. He heads the tendering and bidding activities and is in charge of most of the projects in Southern India
We met Mr. K. Jalandhar Reddy, Promoter and Executive Director of KNR Construction (KNRC) to get an update on its business and understand its strategy. Our key takeaways:
Recent order wins address medium-term revenue visibility concerns
KNRC has been able to ramp up order inflows by winning four HAM projects with an EPC business opportunity of INR31b, leading to order backlog of INR59b and providing revenue visibility of 3.3x its TTM revenue. Incrementally, KNRC expects order inflow of INR30b to materialize in 1HFY19 (two projects in Telanga and one KSHIP project), which will further boost its revenue visibility. With healthy order inflows and potentially strong order inflow piepline, concerns on growth have been addressed by the company.
Focus shifts to financial closure and timely execution of new HAM projects
With revenue growth visibility concerns being addressed by the company, focus has now shifted to successfully executing projects after achieving financial closure for the same. Currently, all the four HAM projects have 80% land available on 3D basis (publication of notification to acquire land in gazette) and expectation is to have 80% land availability on 3H stage (compensation being paid) by September 2018.
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