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KEC International Q3 FY-24 Results: Revenue up 14%, PAT Grows to Five-fold YoY

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KEC International Ltd. [NSE: KEC, BOM: 532714], a major Indian EPC player, has announced its financials for Q3 of FY-24.

KEC’s Q3 FY-24 Standalone Financial Results

KEC International reported a revenue of Rs. 4,397.76 crore from operations during Q3 of FY-24.

Further, the company’s Profit After Tax (PAT) stood at Rs. 44.05 crore during Q3 of FY-24.

Further, Earnings Per Share (EPS) of the company stood at Rs. 1.71 in Q3 of FY-24.

KEC International’s Q3 FY-24 Consolidated Financials

YoY Comparison of KEC’s Financials: Q3 FY-24 vs. Q3 FY-23

KEC’s Revenue Comparison: Q3 FY23 vs. Q3 FY24 vs. Q2 FY24

During Q3 of FY-24, KEC earned a revenue of Rs. 5,006.72 crore, this shows a YoY increase of 14.45% from its Rs. 4,374.62 crore top-line recorded during Q3 of FY-23.

PAT of the company increased to Rs. 96.87 crore during Q3 of FY-24 which is 5.50 times of KEC’s Rs. 17.60 crore PAT clocked during Q3 of FY-23.

KEC’s PAT Comparison: Q3 FY23 vs. Q3 FY24 vs. Q2 FY24

EPS of the company was Rs. 3.77 during Q3 of FY-24 against Rs. 0.68 in Q3 of FY-23.

QoQ Financials of KEC International: Q3 FY-24 vs. Q2 FY-24

On a Quarter-over-Quarter (QoQ) basis, the company’s revenue increased by 11.28% from Rs. 4,499.03 crore recorded for Q2 of FY-24.

KEC’s PAT stood at Rs. 55.83 crore in Q2 of FY-24. This reflects a steep QoQ increase of 73.51% in profit from Q2 to Q3 of FY-24.

KEC International’s Segment-Wise Revenue Comparison

Rs. in Crore

Comparison of KEC’s Segment-wise Financials: Q3 FY-23 vs. Q3 FY-24

Transmission & Distribution (T&D): T&D segment of the company contributed a major chunk to the company’s revenue during Q3 of FY-24. The company earned a revenue of Rs. 2,723 crore from its T&D business during Q3 of FY-24 against Rs. 2,259 crore recorded for Q3 of FY-23. This represents an increase of 20.54% on a YoY basis.

Civil: This segment bought in a revenue of about Rs. 1,100 crore during Q3 of FY-24, which is approximately 30.18% higher YoY than the company’s Rs. 845 crore civil segment revenue reported during Q3 of FY-23.

Railways: Revenue from KEC’s Railway business vertical decreased by 27.20% YoY to Rs. 653 crore during Q3 of FY-24 from Rs. 897 crore in Q3 of FY-23.

They company’s Year-To-Date (YTD) order inflow from this segment stood at about Rs. 850 crore as on 31st December 2023, which is significantly lower than its order intake of about Rs. 2,900 crore for the corresponding period in FY-23. KEC attributed this drop to growing competition from Tier II and III EPC contractors. Further, the company attributes this decline to its “clientele changing from PSUs to Zonal Railways”.

Cables: This segment bought in a revenue of Rs. 383 crore in Q3 of FY-24 against Rs.368 crore reported for Q3 of FY-23. This reflects an increase of 4.08%.

Oil & Gas: KEC’s Oil & Gas segment revenue stood at Rs. 182 crore for Q3 of FY-24 as compared to Rs. 159 crore reported for Q3 of FY-23. Therefore, KEC’s revenue from this segment grew by 14.47%.

KEC’s share price increased by 4.60% after the company announced its financials for Q3 of FY-24 as compared to the share price on the previous trading day.

Further, volume of share trades peaked at 28,95,000 trades on the day after announcement of KEC’s Q3 FY-24 financials against 6,82,000 trades on the previous trading day. This represents an increase to over four-fold in the volume of trades.

KEC to Expand Business in India and Dubai, Order Book Crosses 30,000 Cr.

KEC’s Dubai Facility

During the company’s Q3 FY-24 earnings call, Mr. Vimal Kejriwal, Managing Director & Chief Executive Officer of KEC International Ltd. announced an investment of Rs. 60 crore to add an Aluminium conductor line at its Vadodara plant. He said that this expansion is expected to be completed “within the next few quarters”. He explained, “This development is anticipated to add to the competitiveness of our T&D business and also revenues of our cable business”.

He mentioned that the company will be investing about Rs. 10 crore to expand its automated transmission tower manufacturing capacity in Dubai from 50,000 tonne per annum to 60,000 tonne per annum.

Speaking about KEC’s order book during the company’s earnings call for its Q3 FY-24 financial results, Mr. Vimal Kejriwal said that the company’s order book stands at about Rs. 30,000 crore as on 31st December 2023.

Mr. Kejriwal further added, “In terms of order intake our YTD (Year-to-Date) order intake stands at approximately Rs.13,000 crores with significant contributions from T&D and civil businesses. Notably 25% of these orders are from supply of products such as towers, cables, hardware and poles”.

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 and gas pipelines, Smart Infrastructure, and Cable sectors.