Mumbai, April 24, 2007 : KEC International Ltd. (KEC) today reported (unaudited) fourth quarter revenue of Rs. 640.92 crore versus last year’s figure for the corresponding period of Rs. 478.38 crore. Net profit for the fourth quarter has grown 88% to Rs. 30.18 crore.
“We have extended our leadership position in the Power Transmission EPC sector. Crossing the record level of Rs. 2000 crore in annual revenue marks a major milestone. Expansion to new international markets including strategic strides in developed countries is testimony to the inherent strength and superiority of KEC’s project management and execution skills. We expect to continue on a sustained growth path,” said Ramesh Chandak, Managing Director, KEC International Ltd.
Further, the company’s EBITDA margin for this year’s fourth quarter at 11.07% as against 10.02% for the corresponding period in 2005-06 shows a marked improvement in operational efficiency.
“We are absolutely delighted with our results for the fourth quarter and the year 2006-07,” said Vimal Kejriwal, Executive Director, KEC International Ltd. “We approach 2007-08 with heightened confidence to grow both our top-line and profit. KEC is well and truly on its way to extending its global leadership position,” he added.
Full Year 2006-07 Results
KEC today reported 21% growth in Net Sales for the year 2006-07 at 2093.21 crore against Rs. 1727.25 crore in 2005-06. KEC`s Net Profit for the year stood at Rs. 104.63 a huge increase of 112% from last year’s figure of Rs. 49.31 crore.
Following a series of measures to improve working capital efficiency, KEC’s EBIDTA margins during this financial year stood at 12% up from 9.42% last year. And, interest cost as a percentage of sales fell to 2.88%, versus 3.43% in the previous year, further augmenting margins.
As a result of this, KEC’s earnings per share (EPS) has more than doubled from Rs. 13.58 in 2005-06 to Rs. 27.76 in 2006-07.
During the year 2006-07, KEC’s growth has ridden on the back of large value orders from Kazakhstan and Abu Dhabi in the International market. Notably, the company has received its first order from the advanced market of North America. Within India, Power Grid Corporation continues to be the principal source of high value contracts.
Currently the company boasts an impressive Order Book of Rs. 3000 crore.
Significantly, KEC has successfully expanded its value chain by bagging major orders, both in Domestic and International markets, in areas of Rural Electrification and Distribution. This has grown to a point where it contributes almost 15% to the company’s top line.
“The Union government’s focus on the power sector combined with the resurgence of overall business sentiment internationally, presents a positive market environment for us. KEC is well positioned to build on its strong foundation and leverage both domestic as well as global market opportunities. As we grow our top line, we will also develop new markets and ensure we continue climbing up the value chain,” concluded Mr. Chandak.
KEC International Ltd. is a global leader in the power transmission engineering, procurement and construction (EPC) business. With global operations spanning over 15 countries, the company is present in UAE, Libya, Tunisia, Algeria, Afghanistan, Nigeria, Iraq, Kuwait, Oman, Zambia and Ethiopia among several other countries. KEC is the flagship company in the transmission sector of the Rs. 11,000 crore RPG Group.
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