KEC International Q3 Results Review - Margin Trajectory To Improve Sequentially: Yes Securities

Yes Securities Report

KEC International Ltd. reported a mixed set of numbers, with healthy topline growth in transmission and distribution (up 40% YoY) and non‐T&D segments such as civil (up 75% YoY) and oil and gas pipelines (up 124%) too contributed to the growth.

Despite robust gross margins, Ebitda margins remained under pressure owing to higher execution of legacy projects at adverse prices and SAE Brazil performance.

Order inflows declined 24% YoY due to delay in order finalisation. As on Q3 FY23 order book stands at ~Rs 289.8 billion (1.8 times trailing twelve months revenue), providing revenue visibility for next few quarters.

Going forward, KEC expects adverse impact of SAE legacy projects and margin to improve sequentially. Management is confident of exceeding previously guided order inflow outlook of Rs 180‐200 billion in FY23 and achieving high single‐digit margins by FY24.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.