KEC International Surges Over 8% on Bagging Rs 1007 Cr Order

KEC International Ltd., a prominent global infrastructure EPC (Engineering, Procurement, and Construction) major and a part of the RPG Group, has successfully obtained new contracts worth Rs 1,007 crores spanning its diverse range of operations: 

Civil: The company has been awarded a prestigious contract to oversee the Design, Engineering, Procurement, and Construction of a Multi-speciality Hospital in India. 

Transmission & Distribution (T&D): The T&D division has secured a significant contract for a 380 kV Overhead Transmission line project in the Middle East. 

Cables: The cable division has received orders for the supply of various cable types both within India and internationally. 

Today, the shares of the company surged by over 8% in the early morning trading session. While writing this article, the company’s shares are trading at a price of Rs 659.80 each on the BSE, representing a 5.75% increase of Rs 35.85 compared to the previous day’s high price. 

Vimal Kejriwal, MD & CEO of KEC International Ltd., remarked, “We are delighted by the consistent influx of orders, particularly within our T&D and Civil segments. Aligned with our strategic approach, the civil division has expanded its footprint by securing a groundbreaking contract for constructing a Multi-speciality Hospital in Eastern India. The T&D project in the Middle East region has significantly augmented our international T&D market order book. With these recent orders, our Year-to-Date (YTD) order intake has reached a record level of over Rs. 5,500 crores, showcasing a robust growth of approximately 15% compared to the previous year.” 

The company released its June quarter results on August 03. The revenue from operations saw a YoY increase of 28%, rising from Rs 3318 crore to Rs 4244 crore. The operating profit showed growth from Rs 168 crore to Rs 244 crore; however, on a sequential basis, it decreased from Rs 283 crore to Rs 244 crore. The operating profit margin stood at 6%, a rise from the previous 5% during the same period last year. 

However, the company’s net profit reached Rs 42 crore, in contrast to a net profit of Rs 31 crore during the corresponding period last year. 

KEC International is a global infrastructure major specializing in Engineering, Procurement, and Construction (EPC). It maintains a presence across various sectors including Power Transmission and Distribution, Railways, Civil Engineering, Urban Infrastructure, Solar Energy, Oil & Gas Pipelines, and Cables. The company is actively engaged in infrastructure projects across 30+ countries and has established its footprint in 110+ countries, encompassing EPC services, Tower Supply, and Cables. KEC International serves as the flagship company of the RPG Group. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.