KEC International - Healthy Tender Pipeline, Margins Likely To Revive: Prabhudas Lilladher

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Prabhudas Lilladher Report

We attended KEC International Ltd.'s analyst meet, wherein management highlighted its focus on revenue growth, profitability and better working capital management.

Tender pipeline remains healthy at Rs 1.1 trillion, (domestic ~50%) of which orders worth ~Rs 300 billion are already tendered out. Margins are expected to improve from H2 FY23 and likely to reach double digit by FY24.

Going forward we expect working capital to improve owing to focus on cash collection, SAE Tower legacy order getting completed, receivables coming from Afghanistan and railways payment getting normalised.

Given healthy order book and tender pipeline, KEC maintained its revenue growth guidance of ~15% and order inflow of ~Rs 19-20 billion for FY23E.

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