KEC International reports 22.5% rise in operating profit

vijay-kejriwalKEC International Ltd, the infrastructure unit of RPG Group, reported a 22.5% rise in EBITDA to Rs 185 cr for its second quarter of FY17.

EBITDA margin, which shows how profitable the company’s operations are, increased by 140 bps to 8.7% from 7.3%, reflecting a 28.11% growth in EBITDA to Rs 154.79 cr.

“We have consistently delivered healthy margins with our sustained focus on profitability. We have significantly scaled our Substation Business portfolio and building upon our success in the domestic market, we are steadily expanding our presence in the International Substation arena”, said Vimal Kejriwal, MD & CEO, KEC international Ltd.

The net revenue has increased by 2.7% to Rs 2,121 cr from Rs 2066 cr of same quarter last financial year.

The profit before tax has increased by by 72.4% to Rs 100 cr from Rs 58 cr last year Q2 and profit after tax has been increased by 132.1% to Rs 65 cr from Rs 28 cr of same quarter in FY16.

The Company has secured new orders of Rs 686 crore in Transmission & Distribution, Railways, and Cables Businesses.

Transmission & Distribution Business has secured orders of Rs 381 crore in India, Bangladesh and Bhutan.
Railways Business secured Overhead Electrification orders of Rs 236 crore in Uttar Pradesh and cable business secured supply orders of Rs 69 crore.

“Railways Business is also on a high growth trajectory on the back of consistent order inflows, increase in Capital outlay and enhanced client focus on execution”, Said Vimal Kejriwal.

KEC International is a global infrastructure engineering, procurement and construction (EPC) major.

It has presence in power transmission and distribution, cables, railways, water and renewables.

Globally, the Company has powered infrastructure development in 61 countries. It is the flagship Company of the RPG Group.

RPG Enterprises, established in 1979, is one of India’s largest business groups with turnover over Rs 21,000 cr. The group has more than fifteen companies in the field of Infrastructure, Tyre, IT and Specialty.