Latest news with #KECInternationalLtd
Mint
7 days ago
- Business
- Mint
KEC is making amends to repair margin, allay debt concerns
KEC International Ltd's problems of weak margin profile in select segments, elevated debt, and an elongated working capital cycle are set to ease. The capital goods company is prioritising improving its cash flows and profitability. This is backed by better traction in transmission and distribution (T&D) business and KEC's strategic moves to reduce the earnings drag from non-T&D segments. At its annual investor conference recently, KEC said its current order book, including L1 positions, stood at around ₹40,000 crore. The order book was ₹33,398 crore in FY25. Plus, KEC has a strong bid pipeline of around ₹1.8 trillion, of which 50% is T&D, which typically has a higher margin and a favourable working capital cycle. A robust order book provides near-term revenue visibility. But execution remains crucial to meet its revenue growth guidance of 15% in FY26 from around 10% in FY25. Also Read: PMI: India's services exports bump may lose steam amid global economic gloom The Middle East, Australia and the Americas are boosting T&D demand in the international market, the management said. Domestic T&D demand is robust, led by rising power demand and the shift from fossil fuels to renewable energy. Plus, competitive intensity in the T&D segment has cooled off with the average number of bidders per project dropping to three to five from around 10 earlier. Margin pressure Reducing competitive intensity in T&D could act as a margin lever for KEC, which is eyeing an operating margin of 8-8.5% in FY26 from 6.9% in FY25. On the flip side, the non-T&D business, particularly civil and railways, is facing pressure on margin and net working capital (NWC) days. Also Read: Ola Electric's new breakeven targets appear more like wishful thinking For these segments, KEC is trying to improve return ratios with higher collections, targeting better margins in projects, and timely project completion. However, Motilal Oswal Financial Services cautions, while NWC improvement can happen faster, margin improvement will still take some time to reflect for non-T&D segments. KEC expects NWC days to drop from 122 in FY25 to 100 in FY26. KEC reduced its net debt by ₹500 crore in FY25 to ₹4,558 crore, and a similar drop is likely in FY26. It is also making efforts to lower interest costs from 3% to 2.5%. 'Whilst historically lower margins and NWC elevated segmental mix led to debt bloat up, KEC's course correction may see debt stabilizing with growth driven by surplus cash flow from operations," said an HDFC Securities report on 4 June. If this strategy yields desired results, it may help reverse the performance of the stock, which is down about 27% in 2025 so far. Also Read: Lemon Tree ends FY25 on a good note, but investors must watch debt levels
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Business Standard
04-06-2025
- Business
- Business Standard
KEC International bags ₹2,211 crore orders across T&D, cables, pipelines
The orders span transmission lines in Saudi Arabia, cable supply in multiple markets, and a second oil & gas terminal contract in Africa, taking total YTD order inflow past ₹4,200 crore New Delhi KEC International Ltd, a global infrastructure EPC company under the RPG Group, has secured new orders amounting to ₹2,211 crore across its key business segments. In the Transmission & Distribution (T&D) sector, the company has received contracts for projects in the Middle East and the Americas, which include the design, supply, and installation of 380 kV overhead transmission lines in Saudi Arabia. It has also secured supply contracts for towers, hardware, and poles in the Americas. In the Oil & Gas Pipelines segment, KEC has bagged its second international order for terminal station works in Africa, in addition to its ongoing pipeline-laying project in the region. KEC International is a global infrastructure Engineering, Procurement, and Construction (EPC) company with operations spanning multiple sectors, including Power Transmission & Distribution, Civil, Transportation, Renewables, Oil & Gas Pipelines, and Cables. It is the flagship entity of the RPG Group. Vimal Kejriwal, MD & CEO of KEC International, said, 'These wins reaffirm the MENA region's strategic importance as a key growth driver for us. Our subsidiary, SAE Towers, has secured a significant tower supply order in Mexico, reflecting an uptick in the North American T&D market. With these orders, our YTD order intake stands at over ₹4,200 crore, a robust growth of around 40 per cent vis-à-vis last year.' Last month, KEC International reported a 76 per cent year-on-year increase in consolidated net profit, reaching ₹268 crore for the quarter ended March 2025. The company had posted a net profit of ₹152 crore in the same quarter of the financial year 2023–24. Revenue for Q4FY25 rose to ₹6,872 crore from ₹6,165 crore, marking a growth of 11.46 per cent.
Business Standard
19-05-2025
- Business
- Business Standard
K E C International Ltd Spurts 3.9%
K E C International Ltd has added 17% over last one month compared to 5.28% gain in BSE India Infrastructure Index index and 4.69% rise in the SENSEX K E C International Ltd rose 3.9% today to trade at Rs 831.95. The BSE India Infrastructure Index index is up 0.91% to quote at 605.98. The index is up 5.28 % over last one month. Among the other constituents of the index, Rail Vikas Nigam Ltd increased 3.65% and Ircon International Ltd added 2.94% on the day. The BSE India Infrastructure Index index went down 2.25 % over last one year compared to the 11.13% surge in benchmark SENSEX. K E C International Ltd has added 17% over last one month compared to 5.28% gain in BSE India Infrastructure Index index and 4.69% rise in the SENSEX. On the BSE, 23059 shares were traded in the counter so far compared with average daily volumes of 66867 shares in the past one month. The stock hit a record high of Rs 1312 on 04 Dec 2024. The stock hit a 52-week low of Rs 605.05 on 07 Apr 2025.
Business Upturn
19-05-2025
- Business
- Business Upturn
KEC International shares surge 4% on Rs 1,133 crore T&D order win
By Aman Shukla Published on May 19, 2025, 09:39 IST KEC International Ltd. saw its shares rise by 4% after announcing new Transmission & Distribution (T&D) orders worth ₹1,133 crores in India. As of 9:39 AM, the shares were trading 1.92% higher at Rs 815.95. The contracts were secured from the Power Grid Corporation of India Limited (PGCIL) and a reputed private developer. The order from PGCIL includes the construction of a ±800 kV HVDC transmission line and a 765 kV GIS substation, while the private sector contract involves a 400 kV Quad transmission line. Mr. Vimal Kejriwal, MD & CEO of KEC International, stated, 'We are delighted with the multiple orders secured by our T&D business. These prestigious orders have substantially strengthened our India T&D order book. The HVDC project win further builds on last year's successes, and we continue to see strong growth potential in the sector.' He emphasized the growing demand for power infrastructure in India, driven by rapid energy needs and government focus on renewable energy and robust transmission systems. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
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Business Standard
12-05-2025
- Business
- Business Standard
KEC International wins ₹1,034 cr orders across key infrastructure sectors
KEC International, the flagship company of the RPG Group, has secured Rs 1,034-crore new orders in the domestic and international markets. The contracts have been secured in transmission & distribution (T&D), civil and cables verticals, the company said. The orders include supply of towers, hardware and poles in the Americas, establishing a semiconductor plant for a prominent private player in India, executing an upstream project for a leading steel player in India and supply of various types of cables. Total value of the new orders is Rs 1,034 crore. KEC International Ltd MD & CEO Vimal Kejriwal said, "We are pleased to begin the financial year with prestigious order wins in emerging and high-growth segments. Our T&D business has achieved a major milestone by securing its first ever order in the STATCOM segment, representing a strategic advancement in the substation value chain." The civil business has marked entry into the semiconductor segment with a significant order from a new client and strengthened its order book in the metals & mining segment with a repeat order for an upstream project in a steel plant, he said. KEC International is a global infrastructure Engineering, Procurement and Construction (EPC) major. It has a significant presence in the verticals of power transmission & distribution, civil, transportation, renewables, oil & gas pipelines, and cables. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
