The shares of the second-largest manufacturer of electric power transmission towers gained up to 4 percent after the company bagged significant work orders for Rs 1,136 crore across its various businesses.
With a market capitalization of Rs 28,616.50 crore, the shares of KEC International Ltd were trading at Rs 1,075.00 per share, decreasing around 5 percent as compared to the previous closing price of Rs 1,127.60 apiece.
Reason for Rise
The shares of the company have seen positive movement after KEC International Ltd. has secured orders worth ₹1,136 crore across businesses, including a 765 kV transmission line project from PGCIL, a Train Collision Avoidance System (Kavach) order, and a pipeline design, supply, and build project from a leading PSU in India.
Financial performance
Analyzing a company’s financial performance, revenue increased by 13 percent from Rs 4,499 crore in Q2FY24 to Rs 5,113 crore in Q2FY25, during the same time frame, the company’s net profit increased significantly by 52 percent from Rs 56 crore to Rs 85 crore.
Recent Developments
Recently, KEC International Ltd has secured new orders worth ₹1,142 crores across its various business segments. In Transmission & Distribution (T&D), the company received contracts for a 380 kV transmission line in Saudi Arabia and for supplying towers, hardware, and poles in the Americas.
In its railway segment, KEC won a contract for constructing bridges and associated works for a railway line in India. Additionally, the Cables division secured orders for supplying different types of cables for both domestic and international markets, further strengthening its diversified portfolio.
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Order Book & Foot print
Consolidated reported a strong performance with a YTD order intake of ₹13,482 crore, marking a 50% year-on-year growth. The company’s order book stands at ₹34,088 crore, with an additional L1 position valued around ₹8,500 crore, reflecting robust demand and business momentum.
KEC International Ltd has an amazing order book of Rs 42,500 crore, with 51% coming from T&D, 31% from Civil, 10% from Railways, 2% from Oil & Gas pipelines, and 4% from Renewables.
The company presently works on infrastructure projects in over 30 countries and supplies towers and cables to over 110 nations.
Strategic Development & Market outlook
The corporation intends to split its cable business into companies to optimize capital allocation. The cable market is expected to develop at a 10%+ CAGR until FY’28. The company seeks to raise ₹1,500 crores through stock and NCDs for liquidity and general business reasons.
The company’s tender pipeline exceeds ₹1,50,000 crores, and government infrastructure initiatives are expected to drive substantial development. Rising private investment strengthens its prospects. Despite probable monsoon hurdles, management is confident in attaining 15% sales growth.
Company profile
KEC International Limited is an India-based worldwide infrastructure engineering, procurement, and construction (EPC) firm. The company operates in the following verticals: electricity transmission and distribution, trains, civil, and urban infrastructure, solar, oil and gas pipelines, and cables.
Written by:- Abhishek Singh
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