Key highlights of the 4QFY24 Result
Strong performance; In-line with our expectations
The company during the quarter has reported 58.6%/71.2%/35.5% YoY growth in Sales/EBIDTA/PAT to Rs 289.4 cr/Rs 92.9 cr/ Rs 43.0 cr respectively. The full year FY24 Sales/EBITDA/PAT were up 59.0%/61.6%/47.5% YoY to Rs 1,023.9 cr/ Rs 336.8 cr/ Rs 161.7 cr respectively. The EBITDA margin for FY24 remained stable at 32.9% up 51 bps YoY. The overall full year performance in terms of revenue and EBITDA were higher than our expectations, however profit marginally missed our expectation on account of higher interest costs.
The order book provides healthy revenue visibility for next 2-3 years: The current order book as of Mar’24 is 1,234 MW including 366+ MW under IPP and 866 MW under CPP. The management is confident of growing the earnings by 45-50% CAGR over next 2-3 years. The current order book in rupee terms is estimated to be at Rs 3,500-3,700 cr which is ~3.5x of its FY24 sales thus offering healthy revenue visibility in medium terms.
Post fund raising, D/E is now at 1x: The company during the year has raised Rs 422 cr through mix of both preferential issue and QIP. The fund inflow has helped to improve the overall balance sheet with current D/E ratio of 1x as compared to 2x in FY23. The company’s overall debt will remained stable for FY25 while FY26 will see an uptick as the execution of IPP orders picks-up.
Valuation still attractive; Maintain buy rating- Target Rs 2,219/- At the current price, the stock is trading at 43.4x/27.2x of its FY25E/FY26E earnings respectively. We maintain our buy rating on the stock with an upgraded price target of Rs 2,219/-thus providing an upside potential of 21%.
Click here to download KPI Green Energy Ltd- Rising Star- 4QFY24 Results Update by SBI Securities
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