homemarket NewsJ Kumar Infra will maintain guidance of 14 15% operating margin, says Kamal Gupta — stock hits record high
J Kumar Infra will maintain guidance of 14-15% operating margin, says Kamal Gupta — stock hits record high
J Kumar Infraprojects remains upbeat about the order inflows. The company expects an order inflow of Rs 8,000 crore as again Rs 5,000 crore of an earlier guidance. Following this, the stock touched an all-time high of Rs 418 apiece in trade today.
Construction engineering company J Kumar Infraprojects will be able to maintain a guidance of 14-15 percent of operating margin and all its current projects are within 14-15 percent of margins, said Managing Director Kamal Jagdish Gupta while speaking to CNBC-TV18 on Wednesday.
Gupta said the company works in a very niche area where the competition is comparatively less. "We believe to take on more complex engineering projects. So, we are more into flyover, bridges, metros, elevated underground, hospitals, water tunnels, roads as well. So, I cannot say that this particular sector or this particular segment will generate more revenue, but of course, since we are working in a very niche area where the competition is comparatively less, not like inroads."
J Kumar Infraprojects remains upbeat about the order inflows. The company expects an order inflow of Rs 8,000 crore as again Rs 5,000 crore of an earlier guidance.
“Our guidance initially was Rs 5,000. We have revised over target, and we are anticipating an inflow of around Rs 8,000 crore. So, to maintain an order book of around Rs 15,000 crore by the year end of FY24,” Gupta noted.
'A billion-dollar revenue company by FY27'
The company is on a comfortable journey towards its vision for a billion-dollar revenue company by FY27 with an order book of Rs 20,000-25,000 crore. "So, we are prepared for bigger challenges. J Kumar is looking for bigger ticket size projects and more complex projects with a healthy balance sheet,” he said.
With the speed of the projects improved, the margins will be better, the MD said, adding that the construction engineering company expects a positive uptick in the guidance.
"The Goregaon-Mulund Link Road twin tunnel project will be the biggest road tunnel boring machine (TBM) in India. So, our share will be Rs 3,100 crore. So of course, we are expecting a positive uptick in the guidance. So maybe it will go up Rs 4,800 crore,” Gupta said.
Shares of J Kumar Infraprojects hit a record high of Rs 418 today after the company said that it will maintain a guidance of 14-15 percent operating margin. The stock closed 3.66 percent higher at Rs 406.25 apiece on the NSE.
The company posted a 18 percent year-on-year increase in net profit at Rs 73 crore for the June quarter. The firm reported a 14 percent YoY rise in its revenue from operations at Rs 1,131 crore for the quarter under review as against Rs 994 crore in the year-ago period.
Its EBITDA (earnings-before-interest-taxes-depreciation and ammortisation) margin rose marginally by 20 basis points to 14.3 percent in the reporting quarter.
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