KEC International gains on robust Q1 results, Rs 6,000 crore fundraise plan

So far this year, KEC International stock has gained 46 percent, outperforming benchmark Nifty which has risen 14 percent during this period.

Shares of KEC International rose over 3 percent on July 29 after the company's robust fiscal first-quarter earnings. The electric transmission tower manufacturer reported a net profit of Rs 87.6 crore for the quarter ending in June, more than doubling from Rs 42 crore a year ago.

Its revenue increased by 6.3 percent on-year to Rs 4,512 crore. The company's operating income, or EBITDA (earnings before interest, taxes, depreciation, and amortisation), jumped 10.6 percent YoY to Rs 270 crore, with the EBITDA margin coming in at 6 percent.

KEC International also announced plans to raise up to Rs 6,000 crore through a combination of qualified institutional placement (QIP) and the issuance of non-convertible debentures (NCDs).

The company aims to raise Rs 4,500 crore via QIP by issuing equity or other equity-based instruments. Additionally, it will issue non-convertible debentures worth Rs 1,500 crore through private placement in one or more tranches.

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This fundraising initiative is subject to the overall borrowing limit approved by its shareholders. To facilitate the process, the company has established a committee to oversee the necessary steps. Furthermore, KEC International has decided to transfer its cables business to a newly created subsidiary to streamline operations.

At 9:34 am, KEC International shares were trading over a percent higher at Rs 889.30 on the National Stock Exchange (NSE). So far this year, the stock has gained 46 percent, outperforming benchmark Nifty which has risen 14 percent during this period.

In the week gone by, KEC International revealed that it has secured new orders worth Rs 1,422 crore for various transmission and distribution projects. These projects are located in India and the United States.

The new orders include high-voltage transmission line contracts for 765 kV and 400 kV lines within India, awarded by Power Grid. Additionally, the company will supply substation structures for projects in the United States.

With these recent additions, KEC International’s total order intake for the current year has surpassed Rs 7,500 crore, a growth of over 70 percent compared to the previous fiscal year, underscoring a significant expansion in the company’s project portfolio.

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