Why G R Infraprojects shares fell 4% today

G R Infraprojects shares declined around 4% on Tuesday, May 12, after the company reported a sharp year-on-year fall in EBITDA and net profit for the fourth quarter on a consolidated basis, despite posting growth in revenue.

The company’s revenue rose 9.9% year-on-year to Rs 2,500 crore in Q4, compared with Rs 2,276 crore in the same quarter last year. However, the operating performance weakened during the quarter as EBITDA fell 32.4% to Rs 368 crore from Rs 545 crore in the year-ago period.

The company’s EBITDA margin also came under pressure, declining 930 basis points to 14.7% from 24.0% in the corresponding quarter of the previous year. The margin contraction indicates weaker operating profitability despite higher revenue.

Net profit for the quarter declined 48.8% year-on-year to Rs 207 crore, compared with Rs 405 crore in the same period last year. The sharp fall in profit, along with lower EBITDA and margin pressure, weighed on investor sentiment and led to weakness in the stock.

Overall, G R Infraprojects shares moved lower as the company’s Q4 performance showed revenue growth but a significant decline in profitability and margins.

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