Shares of KEC International surged 4 percent to Rs 975 in morning trade on September 23 after the company announced new order wins totaling Rs 1,003 crore across its railways, civil works, and cables business segments.
KEC International secured a contract for a tunnel ventilation system and related works in India in its railways division. The company also won an order in the industrial sector for civil and mechanical work at a steel plant. Additionally, its cable business received multiple orders for the supply of various types of cables, both domestically and internationally.
Around 70 percent came from the Transmission and Distribution business of KEC. Vimal Kejriwal, Managing Director and Chief Executive Officer, said, “KEC’s railways business has started multiplying its revenue with the emergence of new opportunities in tunnel ventilation apart from existing electrical business. Another development was the expansion of the civil business into the metals and mining sector with a new client.
Its order intake for the current fiscal till the first half alone accounted for over Rs 12,300 crore as part of the RPG Group, forming a substantial part of the all-time high order book of Rs 18,102 crore for FY24.
The new orders come after a downgrade by CARE Ratings for KEC International’s long and short-term bank facilities for slower-than-expected recovery in gross current assets, continuing dependence on working capital borrowings, and leveraged capital structure.
By 9:20 am, the company’s shares were exchanging hands at Rs 960 each, up 2 per cent over the previous close. The KEC International stock has jumped 60 per cent so far in 2023.
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Source: Moneycontrol
News Desk
