Shares of KEC International Limited traded 6 percent higher at Rs 664 in early trade on January 31 after the company announced a five-fold increase in its net profit for the October-December quarter.
The flagship RPG Group firm reported a consolidated net profit of Rs 97 crore, led by higher sales during the quarter. The company's revenue from operations rose 14.4 percent year-on-year (YoY) to Rs 5,006.7 crore.
At 9:20am, the counter was trading at Rs 648, up 3 percent from the previous close on the NSE. In the last year, the stock has gained 38.5 percent, higher than the Nifty.
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KEC International's bottomline improved primarily due to a change in the inventory of finished goods, with an inflow of Rs 55.67 crore during the quarter. This contrasts with a change in inventory of finished goods outgo of Rs 17.91 crore in the same period the previous year.
The increase in government spending on infrastructure, driven by the upcoming general elections a couple of months away, has positively impacted the company. KEC International operates in the power transmission and distribution, civil, and railways sectors.
On January 29, the company announced that it secured orders worth Rs 1,304 crore across various businesses. In the transmission and distribution segment, the RPG Group company secured projects in India, SAARC, and the Americas.
"We continue to remain optimistic about the India T&D business, on the back of the continued thrust of the government for setting up of renewable energy projects," CEO Vimal Kejriwal said after bagging the order. Data shows that its year-to-date order win stands at Rs 13,000 crore.
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