KEC International | Stock Performance Analysis | Market Updates

KEC International Secures Order Worth Rs 1004 Crore: Complete Details Inside

In the recent quarter, the company has reported a remarkable year-over-year growth in its net profit, exceeding 400%.

KEC International Ltd is primarily engaged in the EPC business, which encompasses infrastructure projects, products, and systems. It focuses on activities related to power transmission, distribution, railway, and various other EPC sectors, and has announced significant orders received by the company.

Order Details

KEC International a global infrastructure EPC major and an RPG Group Company, has secured new orders totalling Rs 1,004 crores across its various businesses.

Transmission & Distribution (T&D): The business has secured orders for Transmission & Distribution (T&D) projects in both India and the Americas. This includes a composite order for constructing transmission lines, substations, and underground cabling within India. Additionally, orders have been obtained for the supply of towers, hardware, and poles in the Americas region.

Civil: The business has secured an order for a residential project from a renowned real estate developer in India.

Railways: The business has secured an order for 2 x 25 kV Overhead Electrification (OHE) and associated works for speed upgradation in India.

Cables: The business has obtained orders for the supply of conductors and cables within India. This encompasses a significant maiden order for power transmission conductors (ACSR and AL-59) from a reputed government utility. Additionally, the company will provide various types of cables as part of these orders.

Management Commentary

Vimal Kejriwal, MD & CEO of KEC International Ltd., commented, “We are pleased with the new order wins across our business verticals, especially the breakthrough order for the supply of power transmission conductors. This achievement aligns with our strategy of backward integration and capitalizing on opportunities within the continuously growing demand for power transmission conductors globally. The consistent inflow of orders in T&D has significantly bolstered our order book, particularly within India. Our Civil business has further expanded its presence in the residential segment with the addition of an esteemed client. We are also excited about the Railway order for the Semi High-Speed Rail under Mission ‘Raftaar.’ With these orders, our Year-to-Date order intake stands at approximately Rs 17,500 crores.”

Share Performance

Today, the company’s shares commenced trading at Rs 669.95 per share, which is lower compared to the preceding day’s closing figure of Rs 663.60 per share. During the intraday trading session, the stock reached highs and lows of Rs 680 and Rs 661.25 respectively. Eventually, the company’s shares concluded at Rs 671.90 per share on the BSE. The market capitalisation of the company stands at Rs 17,273.77 crore. Additionally, the stock has delivered an impressive return of around 44% in the past year.

In terms of ownership, the Promoter holds 51.88%, while Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) hold 10.90% and 26.95% respectively. The remaining 10.28% is held by public investors, as per the most recent update.

Financial Overview

In Q3 FY24, KEC International reported a revenue of Rs 5,007 crore, representing an impressive year-on-year growth of 14.45% from Rs 4,375 crore in the same quarter last year. The company’s operating profit stands at Rs 308 crore, with an operating profit margin of 6% compared to Rs 200 crore in the same quarter last year. The net profit of the company stood at Rs 97 crore in the December quarter, representing a year-on-year growth of over 430% from Rs 18 crore.

Investors must keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.