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KEC Posts Q3 FY23 Financials: Revenue Up 30.98% YoY, but Profits Slump

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KEC International Ltd. [NSE: KEC, BOM: 532714], a major Indian EPC player, has announced its financial results for the quarter ended 31st December 2022.

Standalone Figures for KEC’s Financial Performance

KEC International reported a standalone revenue of Rs. 3,867.52 crore from its operations during Q3 of FY-23.

Standalone Profit After Tax (PAT) of the company was Rs. 14.75 crore for the third quarter of the ongoing financial year.

KEC International’s Consolidated Financial Performance

YoY Comparison of KEC’s Financial Figures: Q3 FY-23 vs. Q3 FY-22

Comparison of KEC’s Financial Results: Q3 FY22 vs. Q3 FY23 vs. Q2 FY23

Year-over-Year (YoY) comparison of KEC’s Q3 revenue reflects a 30.98% jump to Rs. 4,374.62 crore in FY-23 from Rs. 3,340.02 crore reported for FY-22.

PAT, however, exhibited a massive downfall, plummeting by 81.2% to Rs. 17.60 crore in the third quarter of FY-23 as compared to KEC’s net profit of Rs. 93.61 crore clocked during Q3 of FY-22.

KEC’s QoQ Financial Performance: Q3 FY-23 vs. Q2 FY-23

On a Quarter-over-Quarter (QoQ) basis, KEC’s revenue from operations increased slightly by 7.64%. The company reported a revenue of Rs. 4,064.00 crore from its operations during the second quarter of FY-23.

Profits of the company tanked by 68.14% from Q2 to Q3 of the current fiscal. For the quarter ended 30th September 2022, KEC’s net profit stood at Rs. 55.24 crore.

Company’s Insights on its Financial Performance

Commenting on the company’s financial performance, Mr. Vimal Kejriwal, MD & CEO, KEC International Ltd., stated, “We have delivered a robust growth in revenues. The growth is backed by good performances in T&D, Civil and Oil & Gas businesses”.

He further added that the company’s margins have been impacted by legacy projects and unfavourable commodity prices in Brazil. Mr Kejriwal said that SAE Brazil, the company’s subsidiary, has not performed well, further impacting KEC’s margins.

With the closure of last EPC project in Brazil, we are confident of a gradual revival in the performance of SAE in the quarters to come, he explained.

Healthy Order Intake, KEC’s FY-23 YTD Order Intake Crosses 15,500 Cr.

KEC stated in a press release dated 31st January that the company’s Year-To-Date order intake stands at Rs. 15,554 crore, which reflects a 10% YoY growth. The company further stated that in the calendar year 2022, that is Q4 of FY-22 and the first three quarters of FY-23, the company’s order book stands at Rs. 28,981 crore, which is 19% higher than the corresponding figure for calendar year 2021.

We continue to witness good traction in order intake”, said Mr. Kejriwal, continuing, our order book along with current L1 pipeline stands at a record level of over Rs. 35,000 crore. Most of these orders have been secured at current commodity prices and logistics costs. Our robust and well-diversified order book gives us confidence of concluding the year with healthy growth” .

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.