The shares of the second-largest manufacturer of electric power transmission towers gained up to 5 percent after the company’s net profit and revenue magnified by 52 percent and 14 percent YoY, respectively in Q2FY25.
With a market capitalization of Rs 25,605.78 crore, the shares of KEC International Ltd were trading at Rs 961.90 per share, decreasing around 1.08 percent as compared to the previous closing price of Rs 967.85 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after KEC International Ltd announced its financial performance in which revenue magnified by 14 percent on a yearly basis from Rs 4,499 crore in Q2FY24 to Rs 5,113 crore in Q2FY25, however, on a Quarterly basis revenue zoomed by 13 percent from Rs 4,512 crore in Q1FY25 to Rs 5,113 crore Q2Y25.
Moreover, net profit is magnified multifold times by 52 percent on a yearly basis from Rs 56 crore in Q2FY24 to Rs 85 crore in Q2FY25, meanwhile on a quarter-on-quarter basis net profit plummeted by 3.4 percent from Rs 88 crore in Q1FY25 to Rs 85 crore in Q2FY25.
Recent Developments:-
Recently, 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.
Order Book & Foot print:-
Consolidated reported a strong performance with a YTD order intake of ₹13,482 crore, marking a 50% year-on-year growth. The company’s order book stands at ₹34,088 crore, with an additional L1 position valued around ₹8,500 crore, reflecting robust demand and business momentum.
KEC International Ltd has an amazing order book of Rs 42,500 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.
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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