KEC International soars 7% on strong Q3 results; Rs 20 billion order win

KEC International has soared 7% to Rs 372 on BSE after the company announced that it has secured new orders of Rs 20.35 billion across its businesses.

“The increased capital outlays for capacity creation in railways announced in the 2018 Union Budget augurs well for the business and we see it as a major growth driver in the coming years. These new orders and a strong L1 pipeline give us confidence to achieve our growth targets,” said Vimal Kejriwal, MD & CEO, KEC International.

The company’s railways business has secured three composite orders aggregating to Rs 17.69 billion for tripling of railway lines, including laying of tracks, civil engineering, electrification, signalling and telecommunication works, in North and East India.

The transmission & distribution (T&D) business has secured an order of Rs 1,610 million for turnkey construction of 132 kV and 220 kV Transmission Lines in West Bengal. The civil Business has secured an order of Rs 300 million for the construction of residential buildings and workshop for a metals & mining company,” KEC International said in a press release.

The company said its cables business has received orders of Rs 630 million for various types of cables and the solar business has received orders of Rs 120 million for the construction of rooftop and ground-mount PV system, it added.

Meanwhile, the company reported a strong 79% year on year growth in net profit at Rs 1.12 billion for the quarter ended December 2017 (Q3FY18). Revenue grew 22% at Rs 24.05 billion over the previous year quarter. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved to 10% from 9% in year ago quarter.

KEC International said the company’s current unexecuted order book stands at Rs 171 billion. It has achieved year to date order inflows of Rs 113 billion.

At 11:08 AM; the stock was trading 4.6% higher at Rs 364 on BSE, as compared to 0.18% rise in the S&P BSE Sensex. A combined 851,719 equity shares changed hands on the counter on BSE and NSE so far.