Shares of KEC International surged over 3% following the announcement of robust fiscal first-quarter results and plans for a significant fundraising initiative. The company reported a net profit of ₹87.6 crore for the quarter ending in June, more than double the ₹42 crore recorded in the same period last year.
KEC International’s revenue increased by 6.3% year-on-year, reaching ₹4,512 crore. The company’s operating income, or EBITDA, rose by 10.6% to ₹270 crore, with an EBITDA margin of 6%.
Besides these good earnings, KEC International also declared its intention to raise up to ₹6,000 crore. This shall have the issuance of ₹4,500 crore through a qualified institutional placement and ₹1,500 crores in one or more tranches by way of issuance of nonconvertible debentures. The initiative of raising funds is subject to an overall borrowing limit approved by shareholders earlier, and a committee has already been constituted by the Company to manage this process.
The company is also looking to achieve operational streamlining by transferring its cable business to a newly established subsidiary.
KEC International’s shares were trading over 1 per cent higher at ₹889.30 as of 9:34 a.m. on the National Stock Exchange. The stock has risen 46 per cent year to date.
Source: MoneyControl
News Desk
