KEC International slumps after Q2 PAT drops 44% YoY

KEC International tumbled 4.88% to Rs 493.25 after the company reported 44% drop in consolidated net profit to Rs 80 crore on a 10% rise in revenue to Rs 3,587 crore in Q2 FY22 over Q2 FY21.

EBITDA fell by 14% to Rs 253 crore in Q2 FY22 from Rs 293 crore in Q2 FY21. EBITDA margin was at 7.1% as on 30 September 2021 as against 9% as on 30 September 2020.

Profit before tax in Q2 FY22 stood at Rs 101 crore, down by 48% from Rs 195 crore in Q2 FY21.

The company incurred an exceptional expense of Rs 44 crore during the quarter. Exceptional item is amount written off against a legacy arbitration case in South Africa, the company said.

Vimal Kejriwal, MD & CEO, KEC International, commented, We are pleased with the strong growth in revenues for the quarter, amidst a challenging environment. The growth has been delivered by good performances across all our businesses such as T&D (excluding SAE), Civil, Railways and Cables.

The margins have been impacted by the elevated raw material prices and the continued headwinds in Brazil. With the new orders announced last week, our order book along with current L1 pipeline stands at a record level of over Rs. 28,500 crore.

KEC International is a global infrastructure engineering, procurement and construction (EPC) major. It has presence in the verticals of power transmission & distribution, railways, civil, urban infrastructure, solar, smart infrastructure, oil & gas pipelines, and cables.

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