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KEC International Achieves 14 Percent Revenue Growth in Q2 FY25 with Record Order Book

KEC International Ltd. announces impressive Q2 and H1 FY25 results, featuring a 14 percent revenue increase and 53 percent PAT growth. The company achieves a record order book exceeding INR 42,500 crore, signaling robust performance and optimistic growth prospects.

November 05, 2024. By EI News Network

KEC International Ltd., a Mumbai based firm in the infrastructure Engineering, Procurement, and Construction (EPC) sector and a key player in the RPG Group, has announced its financial results for the second quarter (Q2 FY25) and half year (H1 FY25) ending September 30, 2024.

The company has reported significant growth across various financial metrics, showcasing its resilience and robust business strategy amidst challenging market conditions.

In Q2 FY25, KEC International achieved consolidated revenues of INR 5,113 crore, a notable increase of 14 percent compared to INR 4,499 crore in Q2 FY24. For the first half of the fiscal year, revenues rose to INR 9,625 crore from INR 8,743 crore, reflecting a 10 percent growth.

As per the firm, the profitability metrics also saw substantial improvements, with Profit After Tax (PAT) soaring by 53 percent to INR 85 crore in Q2 FY25, compared to INR 56 crore in the same quarter last year. Over the half year, PAT grew 76 percent to INR 173 crore from INR 98 crore in H1 FY24. The EBITDA for Q2 stood at INR 320 crore with an EBITDA margin of 6.3 percent, up from 6.1 percent in the previous year. For H1 FY25, EBITDA reached INR 615 crore, with a margin improvement to 6.4 percent from 5.9 percent.

On a standalone basis, KEC reported revenues of INR 4,484 crore in Q2 FY25, compared to INR 3,982 crore in Q2 FY24. The EBITDA for this period increased to INR 230 crore from INR 184 crore, with a stable EBITDA margin of 5.1 percent. The standalone PAT improved significantly from INR 7 crore in Q2 FY24 to INR 58 crore in Q2 FY25.

The company's order intake has demonstrated exceptional growth, with a year-to-date (YTD) order intake of approximately INR 13,500 crore, marking an impressive 50 percent increase year-over-year. KEC's total order book, including the lowest bid (L1) positions, stands at a record high of over INR 42,500 crore, with YTD order book reaching INR 34,088 crore.

KEC International has successfully reduced its net debt, including acceptances, to INR 5,265 crore as of September 30, 2024—a reduction of INR 1,074 crore compared to the same period last year.

Commenting on this, Vimal Kejriwal, Managing Director and CEO of KEC International Ltd., said, "We are pleased with a solid quarterly performance, marked by robust revenue growth, increased profitability, and a substantial reduction in debt levels. Despite challenges such as ongoing manpower shortages and geopolitical uncertainties, we have maintained consistent revenue growth. Our PBT margins have increased by 70 basis points, reflecting our operational efficiency."

He further highlighted the company's record order book and optimistic pipeline of tenders, indicating a clear visibility of growth for the remaining quarters of the fiscal year and beyond.

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Managing Director and CEO

EPC sector

RPG Group