KEC International - Strong Order Book, Scalability Potential In Rail, Civil Are Key Positives: Nirmal Bang

Nirmal Bang Report

We hosted management of KEC International Ltd. as part of our virtual investor conference to gain insights into the current business environment, ordering outlook, commodity costs and supply chain headwinds, besides the company’s outlook going ahead.

The management highlighted that the ordering outlook remains strong with tenders under evaluation and in the pipeline standing at Rs 1.1 trillion.

Final legacy projects in Brazil have been completed and the management expects commissioning of the same in Q3 FY23 itself. It further expects revival in SAE Towers Holding LLC's performance Q4 FY23 onwards.

KEC’s margins were affected mainly by elevated commodity and logistics costs and SAE Brazil’s performance. However, with exposure to the legacy projects largely reduced (5% of orderbook), we believe that margins are likely to improve Q3 FY23 onwards as KEC starts executing projects booked under the current commodity prices.

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.