• Quarterly Revenue: INR6,872 crores, a growth of 28% sequentially and 11% YoY.

• EBITDA Growth: 49% YoY with margins improving by 150 basis points to 7.8%.

• PBT and PAT Growth: Both increased by 77%, with PBT margin at 5% and PAT margin at 3.9%.

• Order Intake: INR5,700 crores in Q4, primarily from the T&D business.

• Net Debt Reduction: Decreased by INR500 crores to INR4,558 crores as of March 31, 2025.

• Annual Revenue: INR21,847 crores, a 10% growth YoY.

• Annual EBITDA Growth: 26% YoY with margins expanding by 90 basis points to 7%.

• Annual PAT: INR571 crores, a 65% increase from FY24.

• Annual Order Intake: INR24,689 crores, a 36% growth YoY.

• Dividend Declared: 475%, INR5.50 per equity share.

• T&D Business Revenue: INR12,833 crores for the year.

• Cables Business Revenue: Over INR1,800 crores, a 10% growth.

• Renewable Business Revenue: INR853 crores, a 92% growth.

• Transportation Business Revenue: INR2,112 crores, a 32% decline.

• Civil Business Revenue: INR4,483 crores for the year.

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

Release Date: May 27, 2025

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

Positive Points

• KEC International Ltd (BOM:532714) achieved record-breaking revenues and highest ever profitability in FY25, with a significant reduction in debt levels.

• The company delivered the highest ever quarterly revenues of INR6,872 crores in Q4, marking a solid growth of 28% sequentially and 11% YoY.

• Order intake remained strong with new orders of INR5,700 crores in Q4, largely driven by the T&D business.

• Net debt to EBITDA improved to over 0.9 times from 1.2 times last year, indicating better financial health.

• The company has a well-diversified and strong order book of INR3,398 crores, providing visibility for the next six to eight quarters.

Negative Points

• The profitability and revenue growth were tempered by a conscious slowdown in the execution of water projects due to delayed client payments and labor shortages.

• The Transportation business saw a revenue decline of 32% due to challenges in project completion and market dynamics.

• The Renewable business, despite strong growth, faces challenges with execution timelines and government policy shifts.

• The company is cautious about the order intake in the Transportation sector due to the working capital scenario and market dynamics.

• The oil and gas pipeline business experienced subdued growth due to a slowdown in tendering activities and smaller order sizes.

Q & A Highlights

Q: The T&D business seems to be back on track. How do you see this impacting margins and the balance sheet? A: Vimal Kejriwal, CEO, stated that the T&D business has shown strong performance with INR18,000 crores in order intake and double-digit margins. The outlook is positive, with a strong tender pipeline and a large order book, which will help in improving financial ratios and deleveraging the balance sheet.