KEC International Gains 8% After Announcement Of Q1 Results

On Tuesday, shares of KEC International rose 8 percent to Rs 295.60 apiece after the power transmission engineering company reported its performance for the first quarter of the financial year 2020-21.

For the June-ended quarter, the company posted an 8.4 percent fall in its revenue at Rs 2,207 crore from Rs 2,412 crore in the same period a year ago. Consequently, its consolidated net profit for the period was down 20 percent to Rs 71 crore.

The company said that its revenue for April was significantly impacted due to COVID-19 disruption as numbers for May and June were better than those in the corresponding months of the previous year.

EBITDA (earnings before interest, taxes, depreciation, and amortization) contracted by 22 percent to Rs 195 crore in the June quarter from Rs 251 crore in the same period last year. EBITDA margin was at 8.8 percent as on 30 June 2020 as against 10.4 percent as on 30 June 2019.

However, the said it was confident of delivering a good performance in the financial year 2020-21.

"We are pleased to have delivered a steady performance amidst global upheavals. Our performance for the quarter reflects our concerted efforts toward accelerated ramp-up in execution, optimisation of costs, and focus on cash flows. We have started deploying various mechanisation and digitalisation initiatives across projects to improve productivity and quality of execution with reduced manpower strength. With operations nearing pre-Covid levels and an order book plus L1 pipeline of over Rs. 24,500 crore, we are confident of delivering a good performance in FY21," said Vimal Kejriwal, MD & CEO of KEC International.