KEC International Sees a Significant Boost in Stock Price
Shares of KEC International, a leading infrastructure company, saw a surge of 4.6% to reach an intraday high of Rs 723.35 on the BSE on Monday, December 15. This increase comes after the company announced that it has secured fresh orders worth Rs 1,150 crore for its transmission and distribution (T&D) business and civil engineering arm.
New Orders and Their Significance
The India T&D vertical has secured its largest-ever domestic contract, which includes the construction of a 765 kV transmission line and a 765/400 kV air-insulated substation. Additionally, the company's civil engineering arm has bagged an order for civil and structural works related to a 150 MW thermal power plant.
Reaction from the Company
Vimal Kejriwal, MD and CEO of KEC International, expressed delight over these order wins, stating that they have substantially increased the share of private sector clients in the company's India T&D order book. He also mentioned that the civil business has increased its presence in the growing thermal power plant segment.
Performance and Outlook
KEC International reported a 19% year-on-year increase in revenue for the quarter ended September, driven primarily by a strong performance in the T&D segment, which recorded growth of 44%. However, the civil construction business was impacted by monsoon-related disruptions and delays in certain water projects.
The company's year-to-date order intake has crossed Rs 18,000 crore, reaffirming its confidence in achieving its annual order intake target. Despite this, KEC International shares are down over 40% since the beginning of the year and nearly 12% in the last month alone.
Key Takeaways
- KEC International secures fresh orders worth Rs 1,150 crore.
- The company's India T&D vertical secures its largest-ever domestic contract.
- The civil engineering arm bags an order for a 150 MW thermal power plant.
- KEC International's year-to-date order intake crosses Rs 18,000 crore.