KEC International surges 3% after bagging orders worth Rs 1,003 cr; details

Shares of KEC International soared as much as 3.12 per cent on BSE at Rs 972.15 per share on Monday’s intraday trade. This came after the company bagged new work orders worth Rs 1,003 crore. 

Infrastructure EPC major, and an arm of RPG Group in an exchange filing on Sunday said that the orders span across segments of railways, civil and cables. 

Without specifying details the company said that in railways, it has secured an order for Tunnel Ventilation system and associated works in India, while in civil, the company has secured an order in the industrial segment for civil and mechanical works for a steel plant in India. Meanwhile in cables it has got orders for supply of various types of cables in India and overseas. 

 

“We are pleased with the order wins secured across our business verticals. Our Railway business has strengthened its presence in the emerging Tunnel Ventilation segment, while our Civil business has expanded its portfolio with the addition of a prestigious new client in the Metals and Mining segment. With these orders, our YTD order intake stands at over Rs. 12,300 crores, reflecting a stellar growth of over 60 per cent compared to last year. Notably, a substantial 70 per cent of this year’s order intake comes from our Transmission & Distribution (T&D) business,” said Vimal Kejriwal, MD & CEO, KEC International. 

Last week, Care Ratings downgraded the company’s credit rating to ‘A+;Stable’ from ‘AA-; Negative’. The credit rating agency said the revision in the ratings assigned to bank facilities and instruments of KEC International Limited (KEC) considers lower-than envisaged recovery in its gross current assets in FY24 and Q1FY25 leading to prolonged elongation of gross current asset days (GCA), continued reliance on working capital borrowings including short term debt and leveraged capital structure. 

Adjusted total outside liabilities to tangible net worth (TOL/TNW) steadily deteriorated from 3.57x as on March 31, 2022, to 4.27x as on March 31, 2024, KEC had disclosed in an exchange filing. 

KEC International is a global player in infrastructure engineering, procurement, and construction (EPC). The company operates across various sectors including Power Transmission and Distribution, Railways, Civil Engineering, Urban Infrastructure, Solar Energy, Oil & Gas Pipelines, and Cables. As a flagship entity of the RPG Group, KEC International maintains a robust global presence.

The company is actively engaged in executing infrastructure projects in over 30 countries and has established its footprint in more than 110 countries.

Its operations span across EPC services, supply of towers, and cables, reflecting its diversified capabilities and expansive reach in the global infrastructure landscape.

Tha market capitalisation of KEC International is Rs 24,420.82 crore, according to Bombay Stock Exchange (BSE). Its shares are trading at a price to earnings multiple of 137 times with an earning per share of Rs 6.84. 

At 09:51 AM, KEC Interanational’s shares pared most of its gains and were trading 0.77 per cent higher at Rs 949.90. In comparison, the BSE Sensex was trading 0.34 per cent higher at 84,834 levels.