Kalpataru Power selling non-core assets to boost return ratios: CEO Manish Mohnot

Mumbai: Kalpataru Power Transmission Ltd (KPTL) is selling non-core assets to boost its return on capital ratio, Manish Mohnot, MD and CEO, said.

The company has sold its remaining 50% stake in a commercial realty investment in Thane, Mumbai, which will bring in Rs140 crore to the company’s coffers next month, he said in a phone interview.

KPTL is also developing a residential property in Indore, at an investment of Rs250 crore. “We have already sold 10-15% of the units here. We expect to sell this completely by FY20-21.”

“This will help us unlock value in our non-core assets, improve our return ratios and manage working capital requirements,” Mohnot explained.

KPTL, one of the larger power transmission and EPC players in the country, is focusing on expanding business with limited equity infusion. The sale of non-core assets is part of this effort as are plans to expand operations in its subsidiary Shree Shubham Logistics, a warehouse and supply chain operator, by beginning to take warehouses on hire instead of building new facilities.

“The logistics market is not mature enough to pay higher prices for warehouses of better quality. So to stabilise the warehouse business, we have begun expanding operations by hiring existing facilities as well,” Mohnot said.

KPTL expects 15-20% topline growth in its transmission business in the coming two years. For Q4, the company reported revenue of Rs1,931.4 crore and net profit of Rs104.8 crore.

For FY18, revenue stood at Rs5,778.5 crore, while net profit rose 20% year-on-year to Rs322 crore.

JMC Projects, its road developer subsidiary, reported standalone net profit of Rs34.3 crore in Q4, up 110% from the year-ago period.