KEC International Ltd shares opened flat today and currently trade at Rs 469. The scrip, in the past week, has gained around 4 percent. Keeping a horizon of a year, the stock has been able to provide 17.3 percent returns to its shareholders.
The company, via a press release over the exchange last week, announced that it has received work orders worth Rs 1,213 crores across various businesses. Details of the same are mentioned below.
The ‘Transmission & Distribution’ (T&D) business secured orders for projects in India, SAARC, the Middle East, East Asia Pacific, and the Americas. ‘Civil’ business secured an order in the urban infra segment in the country. Lastly, the ‘Cables’ business secured orders for various types of cables domestically and overseas too.
KEC International Ltd is an infrastructure engineering, procurement, and construction (EPC) company that has a presence in power transmission and distribution, cable manufacturing, railway construction, water resource management, and renewable energy sectors.
Roughly half of the company’s business occurs within the country with the rest executed in countries around the globe. Primarily, the company generates revenue by performing infrastructure engineering, procurement, and construction contracts.
Having a look at the financials, the company has reported numbers with opposing directions on a QoQ basis as far as the revenues and net profits are concerned. Revenues moved up from Rs 4,064 crores in Q2 to Rs 4,375 crores in Q3. On the other hand, the net profits showed a down movement from Rs 55 crores in Q2 and reached down to around one-third value of Rs 18 crores in Q3.
The profitability ratios too have been showing a downward trend with ROE moving from 17.95 percent in FY20-21 to 9.52 percent in FY21-22. ROCE figures shifted from 21.35 percent in FY20-21 to 13.8 percent in FY21-22.
The debt to equity ratio of the company worsened with an increase in numbers on a YoY basis with 0.57 during FY20-21 to 0.79 in FY21-22.
As per the quarter ending December 2022, promoters hold a 51.88 percent stake in the company. FIIs increased their stake from 11.58 percent in Q2 to 12.62 percent in Q3.
Written by Amit Madnani
