K E C International Ltd Share Price – NSE /  BSE

Infrastructure Developers & Operators, Small Cap

The company’s railway business received orders for tunnel ventilation system and associated works in India.

The civil business has acquired a significant order in the industrial segment for civil and mechanical works at a steel plant in India.

Additionally, the cables division has also won contracts for the supply of various types of cables, both domestically and internationally.

Vimal Kejriwal, MD & CEO, KEC International, commented, “We are pleased with the order wins secured across our business verticals. Our Railway business has strengthened its presence in the emerging tunnel ventilation segment, while our civil business has expanded its portfolio with the addition of a prestigious new client in the Metals & mining segment. With these orders, our YTD order intake stands at over Rs 12,300 crore, reflecting a stellar growth of over 60% compared to last year. Notably, a substantial 70% of this year’s order intake comes from our transmission & distribution (T&D) business.”

KEC International is part of the RPG group. The company is a global EPC major in power T&D systems. It has also diversified in railway infrastructure, manufacturing cables (for power, telecom, solar and railways), civil construction with a focus on construction of industrial plants, warehouses, residential and commercial complexes, smart infrastructure, and renewable sector (solar) projects.

The company's consolidated net profit surged to Rs 87.58 crore in the quarter ended June 2024 as against Rs 42.33 crore during the previous quarter ended June 2023. Sales rose 6.32% to Rs 4511.89 crore in Q1 FY25 as compared to Q1 FY24.

Shares of KEC International rose 0.65% to currently trade at Rs 948.80 on the BSE.

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The agency has, however, reaffirmed the company’s short term rating at ‘CARE A1+’.

CARE Ratings stated that the revision in the ratings assigned to bank facilities and instruments of KEC International (KEC) considers lower-than envisaged recovery in its gross current assets in FY24 (refers to April 01 to March 31) and Q1FY25 (refers to April 01 to June 30) leading to prolonged elongation of gross current asset days (GCA), continued reliance on working capital borrowings including short term debt and leveraged capital structure.

Furthermore, higher debt levels and moderate profitability led to steady deterioration in debt coverage indicators.

KEC plans to raise equity in the near term, of which, nearly Rs 1000 crore shall be utilised towards growth capital for reduction of debt thereby improving its leveraged capital structure and liquidity position.

Long-term fund-raising plan including issuance of Non-convertible debentures (NCDs) of approximately Rs 500 crore is expected to improve the capital structure and also mitigate the roll over risk associated with short term debt.

Going forward, improvement in the profitability and rationalising elongated current asset days are critical for improving debt coverage indicators.

Nevertheless, the ratings continue to derive strength from the company’s dominant market position of the engineering, procurement and construction (EPC) business in the power transmission and distribution (T&D) segment, extensive experience of promoters, financial flexibility available being a part of the RPG group, strong project execution capabilities and robust order book position, which is diversified across multiple sectors and geographies.

Ratings factor in the significant addition of orders in Q1FY25 post slender moderation in FY24 leading to strong order book position providing revenue visibility in the near-to-medium term.

KEC International is part of the RPG group. The company is a global EPC major in power T&D systems. It has also diversified in railway infrastructure, manufacturing cables (for power, telecom, solar and railways), civil construction with a focus on construction of industrial plants, warehouses, residential and commercial complexes, smart infrastructure, and renewable sector (solar) projects.

The company's consolidated net profit surged to Rs 87.58 crore in the quarter ended June 2024 as against Rs 42.33 crore during the previous quarter ended June 2023. Sales rose 6.32% to Rs 4511.89 crore in Q1 FY25 as compared to Q1 FY24.

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KEC International has secured new orders of Rs. 1,423 crore for Design, Supply and Installation of 380 kV Transmission Lines in Saudi Arabia.

Vimal Kejriwal, MD & CEO, KEC International commented, “We are happy with the continuous inflow of orders, especially in our T&D business. These orders in Saudi Arabia along with the earlier orders in UAE and Oman have further reinforced our leadership in the Middle East and substantially enhanced our international T&D order book. With these orders, our YTD order intake stands at over Rs 11,300 crores, animpressive growth of ~75% compared to last year.”

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Vimal Kejriwal, MD & CEO of KEC International said, “We are happy with the continuous inflow of orders, especially in our T&D business. These orders in Saudi Arabia along with the earlier orders in UAE and Oman have further reinforced our leadership in the Middle East and substantially enhanced our international T&D order book. With these orders, our YTD order intake stands at over Rs 11,300 crore, an impressive growth of about 75% compared to last year.”

KEC International is a global infrastructure engineering, procurement and construction (EPC) major. It has presence in the verticals of Power transmission and distribution, railways, civil, urban infrastructure, solar, Oil & gas pipelines, and cables.

The company's consolidated net profit surged to Rs 87.58 crore in the quarter ended June 2024 as against Rs 42.33 crore during the previous quarter ended June 2023. Sales rose 6.32% to Rs 4511.89 crore in Q1 FY25 as compared to Q1 FY24.

The counter hit an all time high of Rs 1,039 in today’s intraday session.

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