BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Report
The key takeaways from KEC International Ltd.'s FY20 annual report are as follows:
1) a geographically well-diversified order book and robust pipeline; International transmission and distribution (SAARC/Middle East and North Africa, ex-SAE Towers) and Civil and Railways would continue to drive growth in FY21E.
2) moderate profitability, dipped in FY20.
3) incremental borrowing cost (current interest rate less than 7%) has come down (FY20 finance cost at 2.8%; -20 basis points YoY); approximately 55% debt is in forex.
4) sustained increase in wheeling charges intensity has led to lower cash flow from operations/Ebitda over past two years, but net working capital is stable.
Our channel checks for capital goods suggest that well-diversified companies are witnessing accelerated recovery in execution as international operations remain mostly unaffected while the labour situation is improving locally.
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