KEC International shares surge 4% on new orders worth Rs 1,003 crore

KEC International shares have rallied a massive 60 percent since the start of the year.

Shares of KEC International rallied 4 percent to Rs 975 in morning trade on September 23 after the company announced it has secured new orders worth Rs 1,003 crore across its various business verticles - railways, civil work, and cables.

KEC International's railways division has secured a contract for a tunnel ventilation system and related works in India. Additionally, it has won an order in the industrial segment for civil and mechanical work at a steel plant in the country.

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The company's cable business also received orders to supply various types of cables, both domestically and internationally. KEC noted that nearly 70 percent of this year’s order intake came from its Transmission and Distribution segment.

"Our railways business has strengthened its presence in the emerging tunnel ventilation market, while our civil business has broadened its portfolio with the addition of a new client in the metals and mining space," said Vimal Kejriwal, Managing Director and CEO.

As a part of the RPG Group, KEC International has secured over Rs 12,300 crore in orders during the first half of the current financial year, representing nearly 70 percent of the Rs 18,102 crore worth of orders it received in FY24.

The order win gains significance after CARE Ratings, a leading credit rating agency in India, downgraded the company's long and short-term bank facilities. CARE Ratings stated that the revision in ratings for KEC International's bank facilities and instruments reflects a slower-than-expected recovery in gross current assets during FY24 and Q1FY25.

This has led to a prolonged increase in gross current asset days, continued dependence on working capital borrowings, including short-term debt, and a leveraged capital structure.

At about 9:20 am, shares of the company were trading at Rs 960, higher by 2 percent from the last close on the NSE. KEC International shares have rallied a massive 60 percent since the start of the year.

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