KEC International emerges frontrunner to acquire 46.64% stake in ITD Cementation

ITD Cementation’s promoter company, Italian-Thai Development Public Company holds a 46.64% stake in ITD Cementation. In July, the company informed the exchanges that the promoters were seeking to completely exit the company.

The transaction for the promoter stake is likely to happen at the current valuation of nearly ₹9,000 crore. If KEC International acquires the promoter stake, the company will have to pay a consideration in the range of ₹4,000 crore to ₹4,500 crore.

ITD Cementation is also in talks with another domestic entity and a foreign entity for the stake sale.

For the quarter ended June 30, 2024, KEC International reported a 107% year-on-year (YoY) surge in its net profit to ₹88 crore. The company’s consolidated revenue for the quarter grew 6% YoY to ₹4,512 crore.

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter jumped 20% YoY to ₹294 crore. The EBITDA margins in Q1FY25 expanded to 6.5% from 5.8% in the corresponding period last year. Meanwhile, the net profit margins for the quarter expanded to 1.9% from 1% in the previous year.

KEC International’s order book at the end of the June quarter stood at ₹32,715 crore.

Shares of the company have risen by nearly 52% since the beginning of the year. The stock has gained over 47% in the past year.