KEC International shares gain nearly 3% on robust Q1 results, fundraise plan

Shares of the company rallied to an intraday high of ₹905.4 apiece on the NSE, reflecting gains of 2.88% over the previous close. The stock, however, pared gains to trade 0.33% lower at ₹877.15 apiece on the NSE at 12:32 pm.

The global engineering, procurement and construction (EPC) services provider for power transmission projects, on July 26, reported a 108% jump in net profit to ₹87.6 crore for the April-June quarter (Q1FY25) compared to ₹42 crore a year ago.

The company’s revenue increased 6.3% to ₹4,512 crore in the first quarter of FY 2024-25 compared to the year-ago period. Its EBITDA (earnings before interest, tax, depreciation and amortisation) grew 10.6% year-on-year to ₹270 crore while EBITDA margin stood at 6%.

The company stated that acute shortage of manpower owing to workers returning to their native places during the elections impacted revenues.

KEC International also informed the bourses about plans to raise up to ₹6,000 crore through the qualified institutional placement (QIP) route and the issuance of non-convertible debentures (NCDs).

The company aims to raise ₹4,500 crore through QIP and ₹1,500 crore non-convertible debentures on private placement basis in one or more tranches. It also announced that it would transfer its cables business to a newly established arm to streamline operations.

KEC International’s total order flow for FY 2024-25 has crossed ₹7,500 crore, reflecting a growth of 70% over the last year and highlighting a major expansion in the project portfolio.

Last week, the company secured new orders worth ₹1,422 crore for transmission and distribution projects in India and the United States.

A high-voltage transmission line order for 765 kV and 400 KV lines in India from Power Grid is among the new projects. KEC will supply substation structures for projects in the US.

KEC International is an EPC major in infrastructure segments like T&D, Civil, Urban Infrastructure Railways, Oil and Gas, and Renewables and Cables.