Patel Engineering Share Rose Over 3%: Q2 FY25 PAT Grew ~151%

Patel Engineering Limited, one of India’s leading infrastructure and construction companies, has announced its financial results for the quarter (Q2 FY25) and half year (1H FY25) ending September 30, 2024. The results highlight the company’s strong performance amid changing market conditions and reflect its ability to effectively execute critical infrastructure projects.

Resilient Growth Amid Evolving Market Dynamics

In Q2 FY25, Patel Engineering demonstrated resilience with significant progress in key infrastructure sectors including hydropower, irrigation, and tunnelling. The company continues to strengthen its position as a major player in India’s infrastructure development, reaffirming its commitment to the nation’s critical infrastructure needs.

Notably, the company’s order book as of 30th September 2024 stood at ₹1,72,607 million, signalling strong demand for its services. Additionally, Patel Engineering emerged as the lowest bidder for a ₹2,400 million hydropower project from NHPC Ltd. at the Teesta-V Power Station in Sikkim, further solidifying its leadership in the hydropower sector.

Q2 FY25 Financial Highlights

• Revenue Growth: Consolidated revenue from operations for Q2 FY25 stood at ₹11,743 million, compared to ₹10,213 million in Q2 FY24, reflecting a year-on-year growth of 14.98%.
• EBITDA Performance: Consolidated operating EBITDA for Q2 FY25 grew by 15.80%, reaching ₹1,622 million, up from ₹1,401 million in Q2 FY24. EBITDA margin for Q2 FY25 was 13.81%, slightly improving from 13.71% in Q2 FY24.
• Net Profit: The company recorded a significant rise of ~151% in net profit for Q2 FY25, to ₹808 million (6.88% margin) from ₹322 million (3.15% margin) in Q2 FY24.
• Debt Reduction: As of 30th September 2024, consolidated gross debt stood at ₹14,377 million, marking a reduction from ₹18,855 million as of 31st March 2024. This decrease is attributed to effective debt management and repayment strategies.
• Earnings Per Share (EPS): EPS for Q2 FY25 improved to ₹0.87, up from ₹0.46 in Q2 FY24, reflecting the company’s robust earnings growth.

Efficient Use of QIP Funds

Patel Engineering has effectively utilized the funds raised through its Qualified Institutional Placement (QIP). The company deployed approximately ₹3,040 million of the ₹4,000 million raised towards the repayment and prepayment of certain outstanding borrowings, enhancing its financial stability. ₹558.33 million was allocated for general corporate purposes, supporting the company’s continued growth and expansion.

On November 14, 2024, Patel Engineering shares opened at ₹51.51 and reached the day high of ₹52.70 at 11:00 AM, reflecting a rise of 3.20% from the previous close.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.