KEC International in focus; shares gain 8% after June quarter result

KEC International shares surged nearly 8 per cent on the BSE on Tuesday after the company, in its June quarter result announcement, said it was confident of delivering a good performance in the financial year 2020-21 (FY21).  For the first quarter of the fiscal year 2020-21 (Q1FY21), the company reported an 8.4 per cent year-on-year (YoY) drop in its revenue at Rs 2,207 crore against Rs 2,412 crore in Q1FY20. 

The company said the revenue in the month of April was impacted significantly due to Covid-19 disruption; however, numbers for May and June were better than the corresponding months of last year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Rs 195 crore, down 22 per cent against Rs 251 crore in the year-ago period. EBITDA margin was at 8.8 per cent against 10.4 per cent in Q1FY20. The company's profit before tax (PBT) came in at Rs 96 crore, down 30 per cent YoY while net profit slipped 20 per cent to Rs 71 crore against Rs 89 crore in the previous year quarter. CLICK HERE TO READ PRESS RELEASE

“We are pleased to have delivered a steady performance amidst global upheavals. Our performance for the quarter reflects our concerted efforts toward accelerated ramp-up in execution, optimisation of costs, and focus on cash flows. We have started deploying various mechanisation and digitalisation initiatives across projects to improve productivity and quality of execution with reduced manpower strength. With operations nearing pre-Covid levels and an order book plus L1 pipeline of over Rs. 24,500 crore, we are confident of delivering a good performance in FY21," said Vimal Kejriwal, MD & CEO of KEC International. 

At 10:24 AM, the stock was trading over 6 per cent higher at Rs 291.30 on the BSE. In comparison, the S&P BSE Sensex was ruling 0.8 per cent higher at 38,488.20 levels.