During Friday’s session, the share price of a global infrastructure EPC major moved up by nearly 2 percent to Rs. 1,233.35 on BSE, after the company announced securing orders worth Rs. 1,097 crores in the international Transmission & Distribution (T&D) business.
With a market cap of Rs. 32,616.2 crores, at 03:06 p.m., the shares of KEC International Limited were trading in the green at Rs. 1.225.25, up by nearly 1.2 percent, as against its previous closing price of Rs. 1,211.85.
What’s the news
KEC International has announced securing new orders worth Rs. 1,097 crores in the International Transmission & Distribution (T&D) Business, as per the latest regulatory filings on stock exchanges.
In UAE, the company received a project for setting up 400 kV Transmission lines, while in the Americas, KEC International received an order for the supply of towers, hardware and poles across the United States, Mexico and Brazil.
The management stated that 72 percent of this year’s order intake is attributed to the T&D business. With these orders, the year-to-date order intake has surpassed Rs. 19,500 crores, representing a significant growth of approximately 70% compared to the previous year, reinforcing the company’s confidence in the achievement of future growth plans.
Previous Orders
29th November 2024: the company received new orders of Rs. 1,040 crores in its T&D business in the international markets. These include the supply of towers, hardware, and poles in the Americas, as well as 220 kV transmission lines in the CIS region.
12th December 2024: KEC International secured orders worth Rs. 1,073 crores across multiple business segments.
In the T&D segment, the company won contracts for T&D projects in the Middle East and the SAARC region. Within the Civil segment, it has secured orders in the industrial sector in India.
Additionally, in the Transportation segment, KEC, in a joint venture (JV), bagged an order for the design, supply, and construction of a passenger ropeway in the North-East. Meanwhile, in the Cables segment, it received orders to supply various types of cables for both domestic and international markets.
Financial
The revenue from operations of KEC International stood at Rs. 5,113 crores in Q2 FY25, rising by 14 percent YoY from Rs. 4,499 crores in Q2 FY24, and the net profit grew by 53 percent YoY to Rs. 85 crores from Rs. 56 crores, during the same period.
EBITDA for Q2 FY25 increased by 17 percent YoY to Rs. 320 crores, up from Rs. 274 crores in Q2 FY24, while the EBITDA margins grew marginally to 6.3 percent, from 6.1 percent, over the same period.
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Order Book & Management Guidance
As of the second quarter of FY25, the consolidated order book of KEC International reached Rs. 34,088 crore, with a growth of 50% in order intake amounting to Rs. 13,482 crore.
The management has projected EBITDA margins of 9-10 percent by the end of FY25, supported by enhanced project execution and the resolution of payment-related challenges.
While labour shortages and adverse weather conditions have posed challenges to project execution, the management remains confident about future revenue growth and margin improvements. This optimism is fueled by a robust order book and a strong pipeline of upcoming projects.
Stock Performance
The stock has delivered multibagger returns of nearly 105 percent in one year, and around 33 percent of positive returns in the last six months. The shares of KEC International have given positive returns of about 11.6 percent in the last one month.
About the company
KEC International Limited is a global infrastructure Engineering, Procurement and Construction (EPC) major and an RPG Group Company, with a presence in the verticals of Power Transmission and Distribution (T&D), railways, civil, urban infrastructure, solar, oil & gas pipelines, and cables.
Established in 1979, RPG Enterprises has a turnover of close to $4.8 Billion, with diverse business interests in the areas of Infrastructure, Tyres, Pharma, IT and Specialty as well as in emerging innovation-led technology businesses.
Written by Shivani Singh
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