Shares of this cable stock under the mid-cap category jumped up to 3 percent in Thursday’s trading session after the company successfully secured orders worth Rs 2,257 crores across various business segments.
With a market capitalization of Rs 17,796.94 crores, the stocks of KEC International Limited opened their trading hour on Thursday at Rs 701 and currently trade at Rs 692.25. The company’s scrip witnessed an intra-day high of Rs 710.35 indicating a gain of nearly 3 percent as compared to the previous closing levels of Rs 689.70 apiece.
Such upside movement in the company’s stock price was observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated about bagging an order across numerous verticals of the company totaling Rs 2,257 crores.
The ‘T&D’ business secured orders for projects within India as well as outside India, the former from Power Grid Corporation of India Limited (PGCIL) for Substations and the latter from the American regions for the supply of towers, hardware, and poles.
For its ‘Oil & Gas Pipelines’ segment, the company successfully secured its first international order for a pipeline laying project. In addition, the ‘Civil’ and ‘Cables’ businesses of the company received orders for the metals & mining segment from a reputed steel player and supply of various types of cables in India and overseas respectively.
“With these orders, our YTD order intake has surpassed Rs 16,000 crores. These orders will significantly contribute towards our targeted growth going forward.”, commented Mr. Vimal Kejriwal, MD & CEO, KEC International Limited.
During the recent financial quarters, the company reported robust financial performance as far as the prime business indicators, viz, operating revenues and after-tax profits are concerned. The former rose from Rs 4,499 crores during Q2FY24 to Rs 5,007 crores during Q3FY24, and the latter, during the same period, shifted from Rs 56 crores to Rs 97 crores.
The recent investor presentations of the company emphasize its expansion activities, i.e., expansion of power manufacturing capacity in the Dubai facility by 20 percent, securing the largest tower supply order from the United States of America, and plans to expand the product portfolio at Vadodara cable plant for aluminum conductors.
Moreover, the company maintains a positive outlook for its ‘Transmission & Distribution’ (T&D) business with a robust tender pipeline and record order book. The company also expects to maintain an overall guidance on its revenues of Rs.20,000 crores.
KEC International Limited is an infrastructure EPC company having a presence in power transmission and distribution, railway construction, cable manufacturing, water resource management, and renewable energy sectors. It generates a majority of its revenue from the execution of infra EPC contracts.
Written by Amit Madnani
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