KEC builds up on Rs 622 cr order win

EPC player KEC International is up close to 4% on both BSE and NSE and is currently trading at Rs. 139 per share, when the broader markets are just about flat. Volumes on the counter are also very strong – approximately 24 lakh shares have changed hands in first 90 minutes of trade, as against 2 week average traded quantity of 15 lakh shares.

This RPG Group company has won orders worth Rs. 622 crore for its transmission and distribution (T&D) and cables business. While T&D orders aggregate to Rs. 510 crore, spanning North India, Kenya and Americas, balance Rs. 112 crore is order for power and telecom cables. Just last month, in June, company had secured new orders worth Rs. 1,002 crore for T&D, railways and cables business. This was in addition to new order wins of Rs. 1,461 crore in Q4FY15 and worth Rs. 1,565 crore in April 2015. Thus, company has been witnessing healthy order inflow, especially from the Africa, Middle East and CIS nations in the past few months.

For FY15, company reported revenue of Rs. 8,468 crore and net profit of Rs.161 crore, indicating that margins are yet to firm up.