KEC International cracks Rs 622 crore order

KEC International (KECIL) cracked new orders amounting to a total of Rs 622 crore in its transmission & distribution and cables business on July 10, 2015. The company secured new orders across India, Kenya and America. It got two orders from the Power Grid Corporation of India (PGCIL) for supply and construction of transmission lines in Northern India. KECIL also secured an order of Rs 303 crore for the construction of a High Voltage Direct Current (HVDC) transmission line in Kenya. The company secured orders of Rs 81 crore for the supply of lattice towers, monopoles and hardware in the Americas. KECIL secured orders of Rs 112 crore for the supply of power and telecom cables. The share price of the company surged by 4.04 per cent and trading at Rs 139.05 on intraday.

KCIL succeeded in obtaining total orders of more than Rs 3810 crore Q1FY16. The company's transmission and distribution segment got 80.47 per cent of total orders amounting to Rs 3066 crore in Q1FY15.  It had  8.37 per cent of total orders for cables segment. KECIL had  the remaining 11.15 per cent of total orders for its Railways business.

KECIL, a RPG Group company provides global infrastructure Engineering, Procurement and Construction (EPC). It is India's second largest manufacturer of electric power transmission towers. The company has segments like Power Transmission & Distribution, Cables, Railways, Water & Renewables. It has presence in over 61 countries across the globe. KECIL has eight manufacturing facilities for lattice towers, monopoles, hardware and cables. The Company’s manufacturing facilities located at Vadodara in Gujarat, Mysore in Karnataka and Silvassa in Union Territory.

KECIL reported a consolidated total income of Rs 8468 crore in FY15 with 7.16 per cent growth on yearly basis. The company's EBITDA increased by 3.76 to Rs 512 in FY15 from Rs 493 in FY14. Its EBITDA margin contracted by 20 basis points to 6.04 per cent in FY15 as compared to the previous financial year. KECIL's profits increased during FY15 because it sold land at Thane for Rs 134.65 crore. Net profit of the company boosted by 144.15 per cent to Rs 161 crore in FY15 from Rs 67 crore in FY14.

One of its competitors, Kalpataru Power Transmission (KPTL) too bagged an order amounting to Rs 1035 crore on July 1, 2015 in both domestic and international markets. The company secured three transmission line projects amounting to Rs 600 crore with  one each in Kenya, Qatar and Cambodia. It got 4 contracts in the railway division worth Rs 325 crore.

The government initiative towards providing 24x7 supply of electricity will encourage heavy electrical equipment industry. The crucial element in smart cities is to  provide efficient electricity to citizens as well as industries in order to create a positive sentiment towards the industry. On the verge of urbanisation the sector is demanding in India. One can expect more traction across this segment which will be beneficial to the sector in days ahead.