Land sale boosts KEC Q3 net up 40%; margins under pressure

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Land sale boosts KEC Q3 net up 40%; margins under pressure

KEC International's consolidated net profit for the third quarter rose 40% year-on-year to Rs 81 crore, helped by one time gain from sale of a land in Navi Mumbai. However, margin pressure remained during the quarter and that hurt EBITDA (earnings before interest, taxes, depreciation and amortization).

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Moneycontrol Bureau

KEC International 's consolidated net profit for the third quarter rose 40% year-on-year to Rs 81 crore, helped by one time gain from sale of a land in Navi Mumbai. However, margin pressure remained during the quarter and that hurt EBITDA (earnings before interest, taxes, depreciation and amortization).

Net revenue for the October-December was up 36.3% from a year ago to Rs 1,459 crore, the power transmission equipment maker said on Tuesday.

Earnings for the quarter included Rs 53 crore gain from sale of land at Vashi in Navi Mumbai.

KEC's EBITDA (earnings before interest, taxes, depreciation and amortization) was down 10% to Rs 112 crore.

"EBITDA continues to remain under pressure...There were couple of projects during the quarter, which we clearly executed at lower margins. Plus also we need to keep in mind that the new businesses we entered in the last two years or so, we are having lower margins over there because we didn't possess the prequalification," CFO Vardhan Dharkar told moneycontrol.com

During the three-month period, KEC said its order book rose 15% from a year ago and currently stands at Rs 9,200 crore. The order inflow for the quarter was Rs 2,500 crore, highest ever quarterly order intake and KEC expects this will provide good visibility over coming quarters.

KEC International shares closed up 1.8% at Rs 53.45 on NSE on Tuesday.

Click here to listen to Vardhan Dharkar's full interview with moneycontrol.com's Nachiket Kelkar.

nachiket.kelkar@network18online.com