Infrastructure firm KNR Constructions Ltd received a consequential order for a tax refund of approximately ₹18.43 crore for assessment year 2020-21. According to reports from CNBC TV18, the refund was issued following the approval of the company's appeal by the CIT(A)-12, Hyderabad, after the Assistant Commissioner of Income Tax, Central Circle-2(2), Hyderabad, issued the consequential refund order.
The current refund stems from earlier tax additions related to 80-IA deduction and an exceptional item, for which the assessing officer had initially issued a refund of ₹3.72 crore for the same assessment year. As reported by CNBC TV18, the company had filed an appeal before the CIT(A)-12, Hyderabad, which allowed the appeal, leading to the subsequent consequential refund of ₹18.43 crore.
Shares of KNR Constructions Ltd ended at ₹145.25, gaining ₹7.90 or 5.75% on the BSE on February 17. According to CNBC TV18, the company noted that this development has no impact on its financials, operations, or other activities. The positive market reaction reflects investor confidence in the tax refund recovery.
Despite the tax refund development, KNR Constructions reported challenging third quarter results for the current financial year. As reported by CNBC TV18, the company's net profit plunged 58.7% to ₹102.8 crore for Q3, down from ₹248.6 crore in the year-ago period. Revenue also declined 12.4% year-on-year to ₹743.2 crore against ₹848 crore in the corresponding period last year.
The company's operating performance weakened significantly during the quarter. According to CNBC TV18, EBITDA fell 34.8% year-on-year to ₹166.7 crore from ₹256 crore in the same period last year. EBITDA margin declined by 770 basis points to 22.4% from 30.1% in the year-ago period, reflecting the challenging operating environment faced by the infrastructure company.
