Kalpataru Projects International (KPI) has reported a marginal decline in its consolidated net profit for Q3 FY25, with figures showing a 3% dip to Rs 139.59 crore compared to Rs 144.07 crore in the corresponding quarter last year. Despite this decline in profitability, the company has demonstrated strong overall performance, highlighted by significant revenue growth and an expanding order book.
Financial Performance Overview
In the December 2024 quarter, KPI's total income surged to Rs 5,742.76 crore, up from Rs 4,909.95 crore in the same period a year ago. This robust revenue growth, recorded at 17%, underscores the company’s resilience in a competitive market. Additionally, KPI reported an EBITDA margin of 8.4%, reflecting efficient operational performance despite the marginal decline in net profit.
While the net profit dip of 3% may raise concerns, industry experts note that such fluctuations are not uncommon in dynamic sectors, especially when companies experience substantial revenue increases alongside significant operational investments.
Strategic Appointments and Leadership
In tandem with its financial disclosures, Kalpataru Projects International has made pivotal strategic appointments. The board has approved the reappointment of Manish Mohnot as Managing Director & CEO for three years from April 1, 2025, to March 31, 2028, pending shareholder approval. This move is seen as a vote of confidence in Mohnot’s leadership, given his role in driving the company’s recent growth.
Additionally, Deepak Sharma has been designated as the Senior Management Personnel with the role of President, Group Procurement & Supply Chain Management, effective from February 13, 2025. These leadership decisions are expected to reinforce the company’s operational efficiency and strategic positioning in the EPC sector.
Order Book Growth and Future Outlook
Looking ahead, KPI’s performance appears promising. Year-to-date order inflows, including L1 bids, have exceeded Rs 22,600 crore, reflecting strong market demand for the company’s services. The order book itself has grown by 19% year-on-year to reach Rs 61,429 crore as of December 31, 2024.
Moreover, the company has secured additional new orders worth Rs 820 crore in Q4 FY25 (January-March 2025), including significant contributions from its international subsidiaries. These developments highlight KPI's expanding market footprint and its ability to capture new opportunities, both domestically and internationally.
Despite the reported net profit dip, KPI’s strong revenue performance, strategic leadership appointments, and robust order inflow suggest a positive outlook. The company continues to solidify its position as one of the largest specialized EPC firms, operating across diverse sectors such as Power Transmission & Distribution, Buildings & Factories, Water Supply & Irrigation, Railways, Oil & Gas Pipelines, Urban Mobility (Flyovers & Metro Rail), Highways, and Airports.
With projects currently underway in over 30 countries and a global footprint spanning 75 countries, Kalpataru Projects International remains well-positioned to navigate industry challenges and capitalize on growth opportunities in the evolving infrastructure landscape.
Conclusion
Kalpataru Projects International’s Q3 FY25 performance reflects a blend of short-term profitability challenges and long-term strategic strengths. While a 3% decline in net profit indicates some operational pressures, the remarkable revenue growth, expanding order book, and robust leadership appointments signal a strong foundation for future growth. As KPI continues to execute complex projects across the globe, its strategic initiatives and financial resilience will be key to sustaining competitive advantage in the evolving EPC industry.