KEC International Hit 52-Week High with ₹1,012 Crore Worth of Order Wins

KEC International, a prominent infrastructure player in the industry, witnessed a significant surge in its shares, reaching 52-week high at ₹739 in early trade on September 12. This impressive performance was attributed to the company's recent achievement in securing new orders worth ₹1,012 crore across various business segments.

Civil Business Expands with Data Centers and FMCG Projects

KEC International's Civil business division secured substantial orders from new clients in the data center and FMCG segments. These orders encompass the construction of a cutting-edge data center in Western India and the establishment of a manufacturing facility for a renowned global FMCG giant in Southern India.

Transmission & Distribution (T&D) Gains Momentum

The Transmission and distribution (T&D) business of KEC International also showcased remarkable growth by securing orders for T&D projects in India and the Americas. Notably, this includes a pivotal 765-kV transmission line order in India from an existing private client, along with the supply of towers, hardware, and poles in the Americas. In addition to these achievements, KEC International's Cables business received orders for the supply of various types of cables both in India and overseas markets.

Consistent Success in Securing Orders

This impressive feat comes on the heels of the company's previous successes. In the recent past, KEC International secured new orders worth ₹1,007 crore across its diverse business verticals. Notable highlights included a prestigious order for the design, engineering, procurement, and construction of a multispeciality hospital in India, as well as a substantial order for a 380-kV overhead transmission line project in the Middle East. The Cable business also bagged orders for the supply of various types of cables.

Order Book &  Positive Stock Performance

The relentless pursuit of excellence has yielded remarkable results, with KEC International's year-to-date order intake surpassing a record level of over ₹6,500 crore, marking an impressive growth of 11% compared to the previous year.
Reflecting this success, KEC International's share price has witnessed a remarkable upswing, surging by more than 13% in the past month alone. Year-to-date, the stock has gained over 43%, demonstrating its resilience and growth potential. Over the last year, KEC International shares have rallied by an impressive 65%.

Future Outlook

With an order book that continues to strengthen and a positive financial outlook, KEC International's management has set ambitious targets. They anticipate revenue exceeding ₹24,000 crore for the financial year ending March 2024, driven by their robust order book. Moreover, they expect margins to improve, reaching 6% in the April-September period and further increasing to 8% in the second half of the financial year, supported by strong execution and moderation in commodity rates.

Expansion Plans in the Railway Sector

In its FY23 annual report, KEC International highlighted its proactive efforts to expand its presence in the international railway market by leveraging its expertise gained in the Transmission and distribution business. With a positive outlook for investments in the railways sector, the company is poised for growth in the coming years.

Diverse Operations Globally

KEC International, an infrastructure major, operates across various sectors, including power transmission and distribution (T&D), railways, civil engineering, cables, and oil and gas pipelines. The company's presence extends to more than 30 countries, underscoring its global reach and impact.

Impressive Financial Results

EC International reported robust financial results for the quarter ended June 30, with net profit growing by 35.4% year-on-year to Rs 42 crore and revenue increasing by 27.9% to ₹4,244 crore. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a significant jump of 45.1% compared to the previous year, reaching ₹244 crore. The company's margin improved by 64 basis points to 5.7%.

Conclusion

KEC International's recent achievements and strong financial performance underscore its position as a leading player in the infrastructure sector. With a diversified portfolio, a global presence, and a commitment to excellence, the company continues to set new records and strengthen its foothold in the industry.