KEC Intl

KEC International posted a set of exuberant consolidated numbers for Q4 and FY15 on the back of a good operational performance. This EPC company reported a whopping 85% (YoY) jump in net profit at Rs.63 crore for Q4FY15. This was helped by a 16% rise in net sales at Rs.2491 crore, a marginal drop in cost-to-revenue at 93% from 94% and an other income of Rs.9 crore. EBITDA for the quarter came in at Rs.183 crore, up 20% while margins were at 7.26% v/s 6.98%.

The company has a high debt at Rs.2045 crore (long term + short term borrowings), up 13% as at end of FY15. Interest outgo is steep at Rs.570 crore for the year compared to Rs.436 crore in FY14. It ended FY15 with a consolidated net profit at Rs.161 crore, up by a huge 140%. Its order intake in Q4 was at Rs.3820 crore and new order win stands at Rs.1461 crore. The company has consolidated its presence in Africa and CIS region.

The market, post the numbers was more enthused with the prospect of Q1 turning out to be more interesting. The company has stated that it has entered into a sale agreement in April’15 of its telecom assets at 381 sites in the states of Chhattisgarh, Meghalaya and Mizoram to ATC Telecom. This will bring in the company some Rs.81 crore and we could see this money coming in current Q1 if all approvals go through.