 "KEC International's focus on cash flows, working capital is paying off")
KEC International’s stock has had a strong run up on the bourses led by a rebound in profitability and better cash flows. This in turn is helping to reduce its debt and boost return ratios. Operating profit margins have witnessed a sharp revival at 9.5 per cent in FY17, compared with 6 per cent in FY15, with the change in management’s focus towards profitable projects.
A reduction in the working capital cycle has helped KEC lower its net debt to equity position to 1.1x from 2.3x over the same period. While these initiatives have helped the stock rise over 250
