The stock surged as much as 3.32% to ₹29.54 after the Mumbai-based company revealed that its consolidated profit after tax grew 21.7% year-on-year to ₹98.5 crore for the quarter ending June 30. Revenue rose by 3.8% to ₹1,280.7 crore.
Operating performance improved at a quicker rate compared to sales. Earnings before interest, tax, depreciation, and amortization increased by 8.6% to ₹179.6 crore, with the EBITDA margin expanding to 14% from 13.4% a year prior.
The figures indicate enhanced profitability in spite of relatively weak top-line growth, as Patel Engineering highlighted project execution and operational efficiencies as key factors contributing to the quarter’s success.
Core construction business strengthens
Civil construction, which constitutes nearly all of Patel Engineering’s revenue, experienced a 3.6% increase in sales to ₹1,276.8 crore. Profit from this segment rose more significantly by 11.9% to ₹120.1 crore, up from ₹107.3 crore a year earlier.
The company’s smaller real estate segment also showed improvement, turning a profit of ₹2.7 crore from a loss of ₹0.7 crore a year earlier, with revenue climbing to ₹3.9 crore from ₹0.6 crore.
The growth in annual earnings stood in contrast to a weaker sequential revenue performance. Sales dropped by 9.9% from the March quarter, while profits more than doubled from ₹43.6 crore.
Civil construction revenue decreased sequentially by 10.1%, with segment profit falling by 25.8%. However, the real estate segment turned around from a ₹6.9 crore loss in the March quarter to a ₹2.7 crore profit.
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₹14,636 crore order book
At the end of June, Patel Engineering reported an order book of ₹14,636 crore, providing the company with visibility on future revenues as it undertakes projects across India’s infrastructure landscape.
Managing Director Kavita Shirvaikar noted that the quarter demonstrated the advantages of disciplined project execution and cost control, emphasizing that the company remains dedicated to enhancing execution efficiency and preserving strong liquidity.
Progress was also reported on several of its large hydropower initiatives.
The Subansiri Lower Hydropower Project in Arunachal Pradesh achieved 1,000 MW of operational capacity following the commissioning of Unit 4, with concreting work commencing for Unit 7.
Concrete work at the Kwar Hydropower Project surpassed the halfway point during the quarter. Additionally, Patel Engineering initiated construction on the 1,125 MW Dorjilung Hydropower Project in Bhutan.
In June, the company’s long-term credit rating was upgraded to A from A-, reflecting an improvement in its financial status.
Despite the gains on Monday, shares of Patel Engineering remain down approximately 19% over the past year and more than 39% over the last three years.
