Patel Engineering's Q4 net profit crashes 73 pc over rising costs

IANS May 13, 2025 229 views

Patel Engineering reported a 73% drop in Q4 net profit, despite a 20% increase in revenue. Rising expenses and narrowing margins significantly impacted earnings, leading to a decline in EBITDA and stock price. Managing Director Kavita Shirvaikar emphasized the company's achievements, including crossing Rs 5,000 crore in annual revenue. She remains optimistic about future growth, citing the government's focus on renewable energy and infrastructure development.

"Despite the profit setback, the company highlighted major achievements in its operational performance." - Kavita Shirvaikar
Mumbai, May 13: Patel Engineering Limited on Tuesday reported a sharp drop in its net profit for the fourth quarter (Q4) of FY25 despite strong revenue growth, as rising expenses and narrowing margins put pressure on earnings.

Key Points

1

Net profit fell to Rs 38.17 crore from Rs 140.35 crore

2

Revenue increased by 20% to Rs 1,611.86 crore

3

Total expenses surged 22.04% impacting EBITDA and margins

4

Stock price dropped 3.77% on the NSE

The company posted a consolidated net profit of Rs 38.17 crore in Q4, down 73 per cent from Rs 140.35 crore in the same period last fiscal, according to its stock exchange filing.

Revenue, however, rose 20 per cent year-on-year (YoY) to Rs 1,611.86 crore from Rs 1,343.18 crore, total expenses also jumped significantly.

The company reported expenses of Rs 1,498.3 crore in Q4, up 22.04 per cent from Rs 1,227.71 crore in the year-ago period.

This rise in costs contributed to a decline in EBITDA, which fell by 8 per cent to Rs 218.34 crore compared to Rs 237.58 crore last financial year.

EBITDA margin also narrowed sharply to 13.5 per cent from 17.7 per cent, the company said in its exchange filing.

The disappointing bottom line impacted on the company’s stock, which was down Rs 1.68 or 3.77 per cent to trade at Rs 42.92 on the National Stock Exchange (NSE) during the intra-day session.

Despite the profit setback, the company highlighted major achievements in its operational performance for the full year.

Managing Director Kavita Shirvaikar noted that Patel Engineering crossed Rs 5,000 crore in annual revenue for the first time, reflecting consistent growth and operational strength.

She also pointed to a robust order book worth Rs 15,218 crore as of March 31, with an additional Rs 2,500 crore in L1 orders expected to be confirmed.

“Looking ahead, the company remains optimistic due to the government's continued focus on renewable energy and infrastructure development, particularly in hydropower, pumped storage, and tunneling projects -- areas where Patel Engineering has a strong foothold,” Shirvaikar mentioned.

Patel Engineering, a 76-year-old company founded in 1949, specialises in heavy civil engineering works.

Reader Comments

R
Rahul K.
Such a drastic profit drop is concerning for shareholders! 😟 The company needs to control costs better. Rising expenses eating into profits despite good revenue growth shows poor cost management. Hope the management has a concrete plan to improve margins.
P
Priya M.
The order book looks promising though! Rs 15,218 crore plus more in pipeline shows strong future potential. Infrastructure sector is booming in India, and Patel Engg has been around for decades. This might be just a temporary setback.
A
Amit S.
Construction material costs have skyrocketed across India - steel, cement, everything. Not entirely company's fault. Government should look at stabilizing input prices for infra companies. Still, crossing ₹5000cr revenue is no small achievement!
S
Sunita R.
The stock market reaction seems overdone. 3.77% drop for one bad quarter when the company has such strong fundamentals? Long-term investors should see this as a buying opportunity. Hydropower and tunneling projects have great scope in coming years.
V
Vikram J.
EBITDA margin down from 17.7% to 13.5% is the real worrying sign here. Company needs to explain what's causing this squeeze - is it labor costs, material costs, or inefficiencies? Transparency would help regain investor confidence.
N
Neha P.
As someone from Mumbai, I've seen Patel Engineering projects around the city for years. They've built some iconic structures. One bad quarter doesn't define a 76-year-old company. Their expertise in hydropower will be crucial for India's renewable energy goals.

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Patel Engineering Q4 net profit Rising costs Kavita Shirvaikar Revenue growth