KEC International bags ₹1,171 cr orders in Middle-East; stock surges 9%

Shares of KEC International, a construction engineering firm, surged as much as 9.2% to hit an intraday high of ₹947.70 apiece on Thursday after it secured new transmission and distribution (T&D) orders worth ₹1,171 crore in the Middle-East. The new contracts include a 400 kV transmission line project in the United Arab Emirates (UAE) and a 380 kV transmission line in Saudi Arabia, the construction engineering firm said in a BSE filing on Wednesday evening. With these orders, the company's year-to-date (YTD) order intake stands at around ₹10,000 crore, up 80% compared to last year.

At the time of reporting, shares of KEC International were trading at ₹924.35, up 6.6% from the previous closing price of ₹867.30. The stock opened higher at ₹897.85 today, in sync with the strong broader market. The company currently has a market capitalisation of ₹23,763.96 crore.

The construction engineering firm’s stock has risen by 6.77% over the past month, jumped 28.44% in the last six months, and soared 54.12% year-to-date (YTD). KEC International stock touched its 52-week-high of ₹968.20 on July 3, 2024, and a 52-week-low of ₹551 on November 8, 2024.

Vimal Kejriwal, MD & CEO of KEC International, said, "We are delighted with the ongoing success in our T&D business, highlighted by a series of significant order wins. The sustained inflow of orders in the Middle East has substantially expanded our International T&D order book."

KEC International provides engineering, procurement, and construction (EPC) services. It works in areas such as power transmission and distribution, railways, civil engineering, urban infrastructure, solar energy, oil and gas pipelines, and cables. The company operates in over 30 countries and has a presence in more than 110 countries.

Last week, KEC International won orders worth ₹1,079 crore in its T&D and cable businesses. The company secured T&D project orders across India, the Middle East, and the Americas. These include a 765 kV/400 kV transmission line order from a private developer in India, 230 kV/132 kV transmission line orders in Saudi Arabia and Oman, and the upgradation of an existing 400 kV transmission line in the UAE. Additionally, KEC International will supply towers, hardware, and poles in the Americas, the company stated in a release.

KEC International reported a profit after tax (PAT) of ₹88 crore in Q1 FY25, up from ₹42 crore in the same quarter last year. Revenue from operations increased to ₹4,512 crore in the quarter ending June 2024, up from ₹4,244 crore in the same period of previous year. The company’s EBITDA (Earnings before interest, tax, depreciation, and amortisation) surged to ₹294 crore from ₹244 crore, with the EBITDA margin expanding to 6.5% from 5.8%.