• Revenue: INR5,349 crores for Q3, a growth of 7% year-on-year.

• EBITDA Growth: 22% in Q3, with margins expanding by 80 basis points to 7%.

• Order Inflows: Surpassed INR22,000 crores YTD, a growth of over 70% year-on-year.

• Order Book: INR37,440 crores as of the current date.

• Net Debt: INR5,574 crores as of December 31, 2024, reduced by INR471 crores from the previous year.

• PBT Growth: 32% in Q3, with margins expanding by 60 basis points to 3%.

• T&D Business Revenue: INR3,175 crores for Q3, a growth of 17% year-on-year.

• Civil Business Revenue: INR1,700 crores for Q3.

• Transportation Business Revenue: INR456 crores for Q3, a decrease of 30%.

• Cables Business Revenue: INR406 crores, a growth of 6% year-on-year.

• Renewables Revenue: INR238 crores, a growth of more than 50%.

• Oil and Gas Pipeline Revenue: INR76 crores for Q3.

• Warning! GuruFocus has detected 3 Warning Signs with BOM:532714.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• KEC International Ltd (BOM:532714) successfully transferred its Cables business to a subsidiary, KEC Asian Cables Limited, effective January 1, 2025, unlocking growth opportunities.

• The company achieved a record order intake of INR22,000 crores year-to-date, with a 70% increase year-on-year, primarily driven by the T&D business.

• KEC International Ltd reported a strong EBITDA growth of 22% in Q3 and 20% over nine months, with EBITDA margins expanding by 80 basis points to 7% in Q3.

• The company reduced its interest cost as a percentage of revenue by 10 basis points in Q3 and 30 basis points over nine months, enhancing its bottom line.

• KEC International Ltd's T&D business achieved a revenue growth of 17% in the quarter, driven by strong execution across projects, especially in India.

Negative Points

• Revenue growth was impacted by delayed payments from clients, labor shortages, and currency depreciation in Brazil.

• The Civil business faced challenges due to ongoing labor shortages and delayed payments in water projects, affecting revenue growth.

• The Transportation business experienced a revenue decline of 30% in the quarter, with challenges in execution due to client-related issues.

• Working capital challenges persisted, with significant receivables in the water segment impacting debt reduction efforts.

• The company revised its revenue growth guidance for the year from 15% to a range of 12% to 14%, indicating challenges in meeting initial targets.

Q & A Highlights

Q: How do you see the T&D sector performing in the next few quarters, and are there enough opportunities in the market? A: We are very positive about the T&D sector, especially in India, Saudi Arabia, and Abu Dhabi. We expect growth to continue, driven by strong order intake and execution of recent orders. We also have L1 positions in several key projects, which will contribute to our revenue and margin profile going forward. - Vimal Kejriwal, CEO