The shares of the second-largest manufacturer of power transmission towers gained up to 3 percent after the company bagged a prestigious work order of Rs 1,142 crore.
With a market capitalization of Rs 24,769.91 crore, the shares of KEC International Ltd were trading at Rs 930.50 per share, increasing around 0.06 percent as compared to the previous closing price of Rs 931.05 apiece.
Reason for rise:-
According to the company filing, 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.
Financial conditions:-
Looking into the company’s financial condition, revenue jumped by 6 percent from Rs 4,244 crore in Q1FY24 to Rs 4,512 in Q1FY25, however during the same period of time, net profit magnified drastically by 110 percent from Rs 42 crore to Rs 88 crore.
Order Book & Footprint:-
KEC International Ltd has an amazing order book of Rs 42,000 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.
Segment performance:-
Revenues for the Transmission & Distribution (T&D) category were ₹2,499 crores (17% YoY), while Civil ₹1,059 crores (11%), Railway ₹471 crores (-38%), Oil & Gas Pipeline ₹126 crores (21%), Renewables acquired a 625 MWp solar project, and Cables reported ₹363 crores in income.
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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