This Multibagger Stock Transfers Cable Business to Subsidiary; Boasts Rs 13,500 Crore Order Book!

Cable Business Transferred to Subsidiary, Boosting Growth with Rs 13,500 Crore Order Book and Strong Future Outlook

KEC International Limited has announced the successful transfer of its Cables Business to its subsidiary, KEC Asian Cables Limited (KACL), effective January 1, 2025. This transfer was executed as a slump sale, following the satisfaction of all conditions under the Business Transfer Agreement. The move is expected to streamline operations and enhance efficiency in the Cables segment.

Strong Financial Performance in Q2 FY’25
KEC reported revenues of Rs 5,113 crores for Q2 FY’25, registering a 14 per cent year-on-year growth, driven by the Transmission and Distribution (T&D) segment. EBITDA for the quarter grew by 17 per cent, with margins improving to 6.3 per cent. Profit Before Tax (PBT) increased by 72 per cent, while Profit After Tax (PAT) stood at Rs 85 crores, showcasing robust financial health.

Impressive Order Book
The company achieved a record year-to-date order intake of Rs 13,500 crores, marking a 50 per cent growth year-on-year. Notably, 70 per cent of this order intake came from the T&D segment. The total order book now exceeds Rs 34,000 crores, with an additional Rs 8,500 crores in the pipeline, giving KEC a combined visibility of over Rs 42,500 crores.

Segment-wise Performance Overview

• Transmission & Distribution (T&D): Revenues grew 28 per cent year-on-year to Rs 2,831 crores, supported by strong project execution in India and overseas.
• Civil: Revenues rose 9 per cent to Rs 1,152 crores despite challenges like labor shortages. The segment’s order book remains strong at over Rs 10,000 crores.
• Railways: Revenue declined 35 per cent to Rs 503 crores, but the company secured Rs 1,300 crores in new orders, including metro projects.
• Oil & Gas: Revenues stood at Rs 92 crores, with a focus on international expansion.
• Cables: Revenues grew 7 per cent to Rs 441 crores, with plans to invest in new product segments.
• Renewables: Execution of key projects contributed to a strong order book of Rs 1,300 crores.

ESG and Sustainability Efforts
KEC was ranked as the top company in the infrastructure engineering sector for sustainability, highlighting its commitment to ESG principles.

Stock Performance and Outlook
KEC's stock has delivered 100 per cent returns over the last year and 12.37 per cent in the past month. The stock was trading at Rs 1,214.40 (+1.22 per cent) as of 10:30 AM on Wednesday. With a strong order book and improved margins, the company is optimistic about achieving its EBITDA margin guidance of 9-10 per cent by the end of FY’25.

Disclaimer: The article is for informational purposes only and not investment advice

1 comments on article "This Multibagger Stock Transfers Cable Business to Subsidiary; Boasts Rs 13,500 Crore Order Book!"

DEBSHARMA NATH

Sir super fine excellent

1/2/2025 7:23 PM

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