MUMBAI: 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.
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.