KNR Constructions JV secures Rs 4,801-crore contract, shares rise over 8%

KNR Constructions JV secures Rs 4,801-crore contract, shares rise over 8%

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26 Aug, 2025 12:21

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KNR Constructions shares rose over 8% on June 25 after the firm's JV with Harsha Constructions secured Rs 4,801-crore short term contract to develop coal mining block in Jharkhand.

"The Company is in receipt of Letter of Acceptance for “Short Term Contract for Development and Operation of Banhardih Coal Mining Block in the State of Jharkhand” from Patratu Vidyut Utpadan Nigam Ltd (a subsidiary of NTPC in Joint venture with JBVNL), awarded to M/s KNRCL-HCPL (JV) (KNR Constructions Ltd: 74%, Harsha Constructions Pvt Ltd : 26%)," said the company in a stock exchange filing.

At 3:25 pm on June 25, KNR Constructions shares were trading 8.3% higher at Rs 229.79 apiece. The 52-week low of the stock is Rs 192.55 and 52-week high is Rs 415.4. The market capitalisation of the stock is Rs 6,536 crore.

The contract period is five operating years plus initial development stage period of 360 days and the mine reserve is 34.5 million tonne.

In May, the company reported profit before tax (PBT)of Rs 57.73 crore in Q4FY25, down by 86.32% from Rs 422.16 crore recorded in Q4FY24.

EBITDA slipped 40.85% year on year to Rs 221.50 crore during the quarter. EBITDA margin reduced to 22.7% in Q4 FY25 as compared to 26.5% registered in Q4 FY24.

Total expenses fell 26.85% to Rs 8,171.5 crore in Q4FY25. Cost of materials consumed stood at Rs 3,742 crore (down 27.32% YoY), employee benefits expense was Rs 412.44 crore (down 4.99% YoY), and finance costs were at Rs 405.84 crore (up 9.48% YoY) during the period under review.

As of March 31, 2025, KNR Constructions recorded an order book of Rs 5,051.8 crore, out of which Rs 2,561.1 crore is from other road projects, Rs 2,490.7 crore is from the irrigation sector and the pipeline sector.