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KEC Exhibits Substantial QoQ Growth in FY-23: PAT Up 78.08%

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KEC International Ltd. [NSE: KEC, BOM: 532714], an Indian EPC major, has announced its financial results for the quarter ended 30th September 2022.

KEC International’s Standalone Financials for Q2 of FY-23

KEC reported Rs. 3,735.70 crore as its standalone revenue from operations for the quarter ended 30th September 2022.

The company earned a standalone Profit After Tax (PAT) of Rs. 35.81 crore during the same period.

KEC’s Consolidated Financial Results

YoY Comparison of KEC’s Financials: Q2 FY-23 vs. Q2 FY-22

Comparison of KEC’s Financial Results: Q2 FY22 vs. Q2 FY23 vs. Q1 FY23

KEC’s Consolidated revenue from operations increased by a steady 13.28% on a Year-over-Year (YoY) basis. The company reported Rs. 4,064 crore as its revenue for Q2 of FY-23 as against the Rs. 3,587.46 crore revenue clocked during the corresponding quarter of FY-22.

PAT of the company saw a 31.2% slump YoY, to Rs. 55.24 crore reported for Q2 of the current fiscal from Rs. 80.29 crore, which was earned during Q2 of the previous fiscal.

QoQ Comparison of KEC International’s Financial Performance: Q2 FY-23 vs. Q1 FY-23

Quarter-over-Quarter (QoQ) comparison of KEC’s revenue from operations reflects a robust growth by 22.48% from the Rs. 3,318.08 crore revenue for the quarter ended 30th June 2022.

The most remarkable growth in KEC’s financials was seen in the company’s PAT from Q1 to Q2 of the current fiscal. This figure exhibited a staggering 78.08% growth from the Rs. 31.02 crore profit earned during Q1 of FY-23.

Company’s Insights on its Financial Performance

Commenting on the company’s financial results, Mr. Vimal Kejriwal, MD & CEO, KEC International Ltd. said, “We have delivered strong growth in revenues and order intake. The margins continue to be impacted due to the elevated logistics costs, execution of legacy projects with adverse commodity prices and SAE Brazil performance.”

SAE Brazil is a subsidiary of KEC International. Due to a case against SAE Brazil in South Africa, KEC International had to compensate Rs. 76 crore out of its profits earned during Q2 of FY-23.

Mr. Kejriwal further said that in order to prevent situations where legacy projects are executed at unfavourable commodity prices, the company has begun working on projects which are secure as far as commodity prices and logistic costs are concerned.

The company’s consolidated Year-to-Date (YTD) order book for FY-23 stood at Rs. 27,569 crore as of 30th September 2022. The corresponding consolidated YTD order intake stands at Rs. 10,465 at the end of Q2 of FY-23.

“Based on the traction in order intake, record order book + L1 of over Rs. 34,000 crore and a healthy tender pipeline, we are confident of delivering continued strong growth in the coming quarters”, he added.

About KEC International Ltd.: Maharashtra-headquartered KEC International is a major Indian EPC player with a presence in almost 100 countries. Its portfolio comprises projects in Power Transmission and Distribution, Urban, Solar, Infrastructure, Railways, Civil, Oil & Gas pipelines, Smart Infrastructure and Cable sectors.