KEC International reports 53% PAT surge, robust revenue growth in Q2 FY25

KEC International Limited, a key global infrastructure Engineering, Procurement, and Construction (EPC) player under RPG Group, has reported an impressive financial performance for the second quarter (Q2 FY25) and half-year ending September 30, 2024. The company’s results, unveiled on November 4, 2024, reflect substantial growth in revenue and profitability, bolstered by strategic order acquisitions and operational efficiencies.

Robust financial results drive optimism

The company’s consolidated revenue surged by 14% year-on-year to Rs. 5,113 crore in Q2 FY25, up from Rs. 4,499 crore during the same period in the previous fiscal year. For the half-year (H1 FY25), revenue rose by 10% to Rs. 9,625 crore, showcasing continued strength in project execution and order fulfillment.

KEC International’s profit after tax (PAT) witnessed a significant increase, growing by 53% to Rs. 85 crore in Q2 FY25 compared to Rs. 56 crore in Q2 FY24. The PAT for H1 FY25 stood at Rs. 173 crore, marking a 76% year-on-year rise from Rs. 98 crore in H1 FY24. This surge underscores the company’s successful cost management and enhanced operational efficiencies.

The EBITDA also grew notably, with Q2 FY25 seeing an increase to Rs. 320 crore from Rs. 274 crore in Q2 FY24, reflecting an EBITDA margin improvement from 6.1% to 6.3%. The half-year EBITDA climbed to Rs. 615 crore, representing an increase from Rs. 519 crore in H1 FY24, with a margin expansion to 6.4%.

Strategic order growth and debt reduction

KEC International’s order intake achieved a stellar 50% year-on-year growth, reaching Rs. 13,500 crore year-to-date, driven by large-scale project acquisitions. The company’s total order book, including L1 orders, has soared to an unprecedented Rs. 42,500 crore, solidifying its growth prospects for the upcoming quarters.

The management highlighted the reduction of net debt to Rs. 5,265 crore as of September 30, 2024, a significant drop of Rs. 1,074 crore compared to the previous year. This reduction was accomplished despite a revenue increase of approximately Rs. 2,000 crore over the past 12 months, reflecting improved cash flow and working capital management.

Leadership insights on growth and challenges

Managing Director and CEO Vimal Kejriwal expressed satisfaction with the quarterly performance, noting the strong revenue trajectory and PAT margin expansion by 70 basis points to 2.2% in Q2 FY25. He acknowledged the challenges posed by workforce shortages and geopolitical factors but affirmed that the company’s diverse order book and tender pipeline provide visibility for sustained growth through the current and upcoming fiscal periods.

About KEC International and RPG Enterprises

KEC International Limited operates across multiple sectors, including Power Transmission and Distribution, Railways, Civil, Urban Infrastructure, Solar, Oil & Gas Pipelines, and Cables, with ongoing projects in over 30 countries and a presence in 110+ nations. It is the flagship company of RPG Enterprises, a conglomerate established in 1979, known for its dynamic growth in various sectors, including Infrastructure, Tyres, Pharma, and IT.