Stockrabit · Analysts
Questions across 7 calls

Vimal Kejriwal

Firm not listed in source transcripts

KEC International Limited

KEC International Limited CC-Feb26.pdf · 2026-01-30
So the strategy is that we will focus on completing the existing legacy projects so that we can realize our cash flows and also the various claims which we have in the system. We have clearly defocused on the Civil projects in the country, because of intense competition. In some tenders, we have seen 13, in one of them, I saw, 41 bids coming in, mainly from local, I'll say, road contractors because of a slowdown in the, I'll say, NHAI business. So our focus has been on, as I talked about KAVACH, so some more orders are expected to become in KAVACH maybe within the next couple of weeks or so . Then we are focusing on PSI, which is Power Supply, as well as on the Automatic Signaling, ABS. Those are three, four areas where we are working on . On the metro side, we are looking at BLT as well as Power Supply and also third railway line electrification. The other piece here is on the international, we have started bidding . I'll not say aggressively, but we have started bidding especially in the MENA region. So, a couple of countries are where we have a large T&D presence and focus are the countries where we are bidding. So, looking at the revenue and order book, we have very clearly -- and I'll say it's a very conscious decision to degrow the business for a couple of years till we get out of the old projects. This year, we are, I think, L1 orders are of around INR700 crores, INR800 crores already . We may get a few. We are L1 in a large private sector railway siding contract also. So, the focus is that we stay away from projects which require large block work or working on existing high-density railway lines. We do expect that in the coming budget, there is a talk of high-speed -- new high-speed railway corridors coming, which would be new lines and all that, not on existing, which is where you require blocks. So, we are waiting and watching. We are not very aggressive on this business, at least for the next 1 year.
I don't think I have the number on what is the total opportunity as such, but there is a talk of, I think, two more HVDC projects coming in India, one in the South and one in Rajasthan . And there is a large HVDC project under bidding right now in Saudi. Typically, each one of them is around INR25,000 crores, typically. I don't know the exact value of each of these projects, but they will be -- so if you add three of them, there'll probably be INR75,000 crores or more.
KEC International Limited CC-Jun25.pdf · 2025-07-29
So Parikshit, I think the reason for that is very clear. One is our international business, which is housed in UAE and all that is doing very well. Secondly, during the quarter, our civil margins - - you saw a degrowth in the civil revenue. So because of which on the leverage impact, we had a much lower margins in civil. And I think cable also, because we commissioned the plant and we did not get certain approvals from customers, which are now coming through, we had some stock, et cetera, with us. So there was an increase in the interest cost. And I think that has led to this. But I think we are very clear going forward and the way we have planned our budgeting, etcetera. We do not see any issue with the stand-alone margins. I think overall, we expect that our stand- alone margins for the year should be at least at 70% to 75% of our overall targeted PBT for the consolidated entity.
So for FY '26, we have actually guided at 8% to 8.5% already, okay? So I think I don't see any major issue at least in meeting the lower end of it, but 8% to 8.5% is what something we are very -- we think that is achievable. FY '27, obviously, we should have at least a 50 to 100 basis points improvement in that. So FY '27, we will be probably reaching closer to 10%
KEC International Limited CC-Dec24.pdf · 2025-02-04
Thanks, Parikshit. I think we are very positive on the T&D scenario. And especially, I would have earlier said four countries, but right now it would be three, which would be India, Saudi Arabia and Abu Dhabi. We were talking about Americas also, but I thi nk with all the tariffs wars going on, we will just wait and watch what happens, although we clearly see that there will be a lot of infra spend in America also. But primarily today, I think India, UAE and Saudi will drive the growth. And we are very confident that the growth would continue. In fact, what is going to happen Parikshit is that this year we got a lot of orders. We also had legacy orders which we were working on, and which were completed. Now that all that is getting over, we will be able to focus a lot more on the orders which we have secured in the last 12 months or maybe earlier, so which will also add a fillip to our revenue and margin profile in transmission going forward.
HFDC order intake would probably be Rs. 600 crores, Rs. 700 crores right now, but we also have L1s okay in that sector, so maybe we will cross Rs. 1,000 crores or more overall. Right now when we are bidding for a couple of more ones, then one which has be en awarded to a private sector client also is talking to, we are looking at that part also. So, I do not know where we will end up, but I think it will be decent. In addition to that, Parikshit is that, there are some very large HVDC tenders which have come out in the Saudi Arabia also. So, I think there we will be focusing on those also.
KEC International Limited CC-Mar24.pdf · 2024-05-08
Mohit, your question was not very clear too, but I think you're talking about India T&D...
I think clearly we are seeing a large tender pipeline happening. We have seen new renewable, I'll say, packages being announced by the government. On the Rajasthan part, I think it's slowly coming to an end, but I think it's moving on to others. We recently had one more big opportunity announced in, what was that, Jamnagar side, where all the large renewable projects are coming up. Also HVDC has gone into tendering . So we are also seeing, I think, next week or maybe a week, two weeks after, the first HVDC tender line will get tendered out. The second one is also -- and so I think, India T&D, we grew by almost 40%, 45% last year. We are again planning another 40%, 45% growth this year. As of today, if you ask me, we have a INR25,000 crores tendering opportunity right now live. We clearly -- and we are having discussions with all the player s, including POWERGRID, on this, and I can see them that they are very bullish. In fact, I think they are probably going to revise their capex plan . So if you ask me, I think we have never seen such good days in India T&D and the way the government continues to focus, and I do hope that they will continue after the elections, on the renewable part. Other piece is if you look at the huge program which has been announced for setting up of coal-based plant -- thermal plants, I think -- and those plants will obviously come at pitheads etcetera. So again, the lines for this will also be required. So that will be a second part of the growth story of India. So I think very clearly we are right now very positive on the India growth story, which is completely opposite to what we were talking about a year back. It's a huge turnaround.
KEC International Limited CC-Dec23.pdf · 2024-01-31
L1 has got domestic as well as international but I will say a reasonably large amount is from domestic and as you are aware there has been a change in guard in our major client and that has delayed some award of some orders which are in L1. I think we do expect that all of them should get converted into orders very quickly . Number two is clearly we are seeing a large potential at least in the next few quarte rs at least two large HVDCs which are coming out. One has already been tendered out by P ower Grid under TBCB and on the renewable front I think we have got at le ast 30, 35 tenders to be quoted for transmission lines so the potential in India clearly continues to be very good on this.
So as of now we have not seen any major slowness in the orders or something but clearly we will have some impact on the announcement of tenders and even on decision of some of the tenders once the elections are announced so once the election restrictions are comes into place the tenders will not be open or they will not b e awarded. Also during the one month or so of the election period typically you find that the district administ ration and all others are busy with the election mode so wherever you need ground support from the government officials you may see some slowdown , but as far as private capex or private projects are concerned and even some of the government projects where you do not need ground support from the administration execution should not be impacted but yes there could be some impact on the announcement of tenders as well as decision of tenders let us say starting March or something.