KEC International stock price jumps 7% on Rs 1,171-crore order win; details

KEC International stock in focus: Construction engineering company KEC International share price surged as much as 7.22 per cent to hit an intraday high of Rs 930 per share on Thursday, August 29, 2024.

The surge in KEC International stock price came after the company announced that it has secured new transmission and distribution (T&D) orders worth Rs 1,171 crore in the Middle East.

The company has bagged a 400 kV transmission line order in the United Arab Emirates (UAE). The second order is for a 380 kV Transmission line in Saudi Arabia, KEC International said in a statement.

“We are delighted with the ongoing success in our T&D business, highlighted by a series of significant order wins. The sustained inflow of orders in the Middle East has substantially expanded our International T&D order book. These orders, coupled with the orders announced earlier during the year, reaffirm our confidence in achieving the targeted growth going forward,” said Vimal Kejriwal, MD & CEO, KEC International.

Including the latest deal win, KEC International year-to-date (YTD) order intake stands at approximately Rs 10,000 crore, a growth of 80 per cent compared to last year, KEC International said.

Financial performance

KEC International’s June quarter (Q1FY25) profit after tax (PAT) came in at Rs 88 crore, as against Rs 42 crore in the same quarter last year.

Its topline or revenue jumped to Rs 4,512 crore, as opposed to Rs 4,244 crore. 

The company’s earnings before interest, tax, depreciation and amortisation (Ebitda) surged to Rs 294 crore in the June quarter of FY25, from Rs 244 crore in the June quarter of FY24. Consequently, Ebitda margin expanded to 6.5 per cent in Q1FY25, from 5.8 per cent in Q1FY24. 

Net debt including Acceptances stood at Rs 5,596 crore as on June 30, 2024, a reduction of more than Rs 100 Cr visà-vis June 30, 2023, despite a revenue growth of approximately Rs 2,000 crore, i.e., 11 per cent in trailing 12 months, KEC International said in a statement.

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 23,909.22 crore, according to Bombay Stock Exchange (BSE).

At 9:54 AM, KEC International shares were trading 7.15 per cent higher at Rs 929.30 per share. By comparison, BSE Sensex was trading 0.20 per cent higher at 81,952.26 levels.