KEC International gains on bagging new orders worth Rs 1,073 cr

KEC International rallied 3.36% to Rs 1,194.95 after the company announced that it has secured new orders of Rs 1,073 crore across its various businesses.

The companys Transmission & Distribution (T&D) division has received orders for T&D projects in the Middle East and SAARC region.

Additionally, KEC's civil business has secured new orders within the industrial segment in India.

In its transportation segment, the company has received an order in a joint venture for the design, supply, and construction of a passenger ropeway in the Northeast.

Furthermore, KECs cables business has been awarded orders for the supply of various types of cables both in India and abroad.

Vimal Kejriwal, MD & CEO, KEC International commented, We are pleased with the various orders secured across our business verticals. We are particularly enthused by our maiden order in the growing segment of ropeways. With the recent wins in the Middle East and SAARC, we have bolstered our International T&D order book in addition to our already robust India T&D order book, further solidifying our overall T&D business. With these orders, our YTD order intake now stands at over Rs 18,400 crore, reflecting a remarkable growth of around 60% vis-a-vis last year. The uptick in order intake has resulted in our order book + L1 being over Rs 40,000 crore. With this formidable order book and a promising pipeline of tenders, we have a clear visibility of growth in the coming quarters.

Meanwhile, the company has executed the business transfer agreement with its subsidiary, KEC Asian Cables (KACL), to transfer its Cables business, on a going concern basis, via slump sale.

The company stated that the subsidiarisation of the cables business will help improve focus on its core activities, go-to-market approach and capital allocation.

In consideration for the slump sale, KACL shall pay to the company the sum of Rs 125 crore. The transaction is a related party transaction with a subsidiary company of the company and is being done at arms length, it added.

KEC International is part of the RPG group. The company is a global EPC major in power T&D systems. It has also diversified in railway infrastructure, manufacturing cables (for power, telecom, solar and railways), civil construction with a focus on construction of industrial plants, warehouses, residential and commercial complexes, smart infrastructure, and renewable sector (solar) projects.

KEC International has reported 53% jump in consolidated net profit to Rs 85 crore on a 14% increase in revenues to Rs 5,113 crore in Q2 FY25 as compared with Q2 FY24.

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