KEC International Limited
3,944words
14turns
0analyst exchanges
0executives
Key numbers — 40 extracted
13%
20%
Rs. 10,465 crore
25%
Rs. 34,000 crore
Rs. 4,064 crore
Rs. 3,587 crore
Rs. 7,382 crore
Rs. 6,127 crore
Rs. 178 crore
Rs. 253 crore
Rs. 346 crore
Guidance — 9 items
Order Book
opening
“The Company cannot guarantee that these assumptions and expectations are accurate or exhaustive or will be realised.”
Order Book
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“2 1 Overview – RPG Group & KEC International Railway electrification project in Karnataka 3 RPG Group: Powered by Passion, Driven by Ethics UNLEASHTALENT TOUCHLIVES OUTPERFORM AND ☺ RPG Enterprises was founded in 1979.”
Inter SBU
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“110,000 Cr Key Risks Increasing Interest costs Volatile Commodity prices High Logistics costs Geopolitical Instability 17 4 Environmental, Social and Governance (ESG) – Functional English classes imparted to children 18 Pehlay Akshar Schooling ESG & Sustainability Goals and Status Happiness Quotient Diversity & Inclusion Target: Increase Happiness Quotient to 85% by FY26 Target: Increase in diversity by 25% by FY26”
Status
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“Diversity has increased by 4% YoY in FY22 Occupational Heath & Safety Target: Work towards the goal of achieving Zero accidents”
Status
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“LTIFR has reduced to 0.26 in FY22 vis-à-vis 0.68 in FY21, a reduction of 62% YoY Corporate Social Responsibility Target: Reach 2 lac CSR beneficiaries by FY 26”
Status
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“CSR beneficiaries for FY22 are 3.3 lakh (includes COVID-19 response beneficiaries of 2.4 lakh) Circularity Target: Zero waste to landfill by FY 26 for manufacturing plants”
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“Waste to landfill has reduced by 34% YoY in FY22 Water Positive Approach Energy Consumption Carbon Emission Target: Reduce water consumption intensity in manufacturing plants by 20% by FY26 Target: Reduce energy consumption intensity of manufacturing plants by 15% by FY26”
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“Energy consumption intensity has reduced by 26% YoY in FY22 Target: Reduce Greenhouse Gas (GHG) emissions intensity of manufacturing plants by 20% by FY26”
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“GHG emission intensity has reduced by 12% YoY in FY22 Sustainable Procurement Target: 100% of key suppliers to be assessed under ESG criteria by FY23”
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Risks & concerns — 3 flagged
Considering impact of this item, the PBT and PAT are as below: Q2 FY23 v/s Q2 FY22 (Including Exceptional Item*) H1 FY23 v/s H1 FY22 (Including Exceptional Item*) PBT: Rs.
— Consolidated Financial Performance
Considering impact of these items, the PBT and PAT are as below: Q2 FY23 v/s Q2 FY22 (Including Exceptional Item*) H1 FY23 v/s H1 FY22 (Including Exceptional Item*) PBT: Rs.
— Standalone Financial Performance
110,000 Cr Key Risks Increasing Interest costs Volatile Commodity prices High Logistics costs Geopolitical Instability 17 4 Environmental, Social and Governance (ESG) – Functional English classes imparted to children 18 Pehlay Akshar Schooling ESG & Sustainability Goals and Status Happiness Quotient Diversity & Inclusion Target: Increase Happiness Quotient to 85% by FY26 Target: Increase in diversity by 25% by FY26
— Inter SBU
Speaking time
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Opening remarks
Consolidated Financial Performance
Q2 FY23 v/s Q2 FY22 (Excluding Exceptional Item*) H1 FY23 v/s H1 FY22 (Excluding Exceptional Item*) Revenue: Rs. 4,064 crore against Rs. 3,587 crore Revenue: Rs. 7,382 crore against Rs. 6,127 crore EBITDA: Rs. 178 crore against Rs. 253 crore EBITDA: Rs. 346 crore against Rs. 413 crore EBITDA Margin (Y-o-Y): 4.4% against 7.1% EBITDA Margin: 4.7% against 6.7% EBITDA Margin (Q-o-Q): 4.4% against 5.1% - Interest as % to Revenue: 3.1% against 2.0% Interest as % to Revenue: 3.1% against 2.3% PBT: Rs. 27 crore against Rs. 144 crore PBT: Rs. 64 crore against Rs. 203 crore PBT Margin: 0.7% against 4.0% PBT Margin: 0.9% against 3.3% PAT: Rs. 55 crore against Rs. 113 crore PAT: Rs. 86 crore against Rs. 159 crore PAT Margin: 1.4% against 3.1% PAT Margin: 1.2% against 2.6% *In Q2 FY22, there was an exceptional write-off of Rs 44 Cr against a legacy arbitration case in South Africa. Considering impact of this item, the PBT and PAT are as below: Q2 FY23 v/s Q2 FY22 (Including Exceptional Item*) H1 FY
Standalone Financial Performance
Q2 FY23 v/s Q2 FY22 (Excluding Exceptional Item*) H1 FY23 v/s H1 FY22 (Excluding Exceptional Item*) Revenue: Rs. 3,736 crore against Rs. 3,357 crore Revenue: Rs. 6,584 crore against Rs. 5,695 crore EBITDA: Rs. 230 crore against Rs. 315 crore EBITDA: Rs. 464 crore against Rs. 540 crore EBITDA Margin (Y-o-Y): 6.2% against 9.4% EBITDA Margin: 7.0% against 9.5% EBITDA Margin (Q-o-Q): 6.2% against 8.2% - Interest as % to Revenue: 2.7% against 1.9% Interest as % to Revenue: 2.7% against 2.1% PBT: Rs. 115 crore against Rs. 224 crore PBT: Rs. 251 crore against Rs. 365 crore PBT Margin: 3.1% against 6.7% PBT Margin: 3.8% against 6.4% PAT: Rs. 99 crore against Rs. 165 crore PAT: Rs. 200 crore against Rs. 268 crore PAT Margin: 2.7% against 4.9% PAT Margin: 3.0% against 4.7% *In Q2 FY23, there is a provision of Rs. 76 Cr towards impairment of subsidiary in SAE Brazil and in Q2 FY22, there was an exceptional write-off of Rs 44 Cr against a legacy arbitration case in South Africa. Considering impact
Order Book
YTD Order Book of Rs. 27,569 crore including orders released in Q3 FY23 till date, a healthy growth of ~25% YoY; Additionally, L1 of over Rs. 6,500 crore. 2 | P a g e Mr. Vimal Kejriwal, MD & CEO, KEC International Ltd. commented, “We have delivered a strong growth in revenues and order intake. The margins continue to be impacted due to the elevated logistics costs, execution of legacy projects with adverse commodity prices and SAE Brazil performance. We have significantly reduced our exposure to legacy projects and have commenced execution of projects which are secured based on current commodity prices and logistics costs. This augurs well for us and gives us confidence of a sequential improvement in the margins in the quarters to come. Based on the traction in order intake, record order book + L1 of over Rs 34,000 crore and a healthy tender pipeline, we are confident of delivering a continued strong growth in the coming quarters.” About KEC International Limited KEC International is
Inter SBU
Total Net Sales T&D Share Non T&D Share Q2 FY22 1,946 1,738 208 FY23 2,091 1,871 220 2,093 1,808 858 740 81 25 390 -120 4,064 51% 49% 986 449 0 17 356 -166 3,587 54% 46% Growth (Y-o-Y) 7% 8% 6% 16% -13% 65% NA 51% 9% -28% 13% H1 FY22 3,351 2,941 411 3,056 1,580 749 0 37 690 -280 6,127 55% 45% FY23 3,736 3,150 586 3,911 1,562 1,338 173 30 809 -265 7,382 51% 49% Growth (Y-o-Y) 11% 7% 43% 28% -1% 79% NA -19% 17% -5% 20% 14 Borrowings & Working Capital (Consolidated) Particulars 30-Sep-22 30-Sep-21 I) Net Debt II) Interest Bearing Acceptances Total (I + II) 3,548 2,372 5,919 2,801 1,549 4,351 Increase/ (Decrease) YoY 746 822 1,568 30-Jun-22 3,418 2,658 6,076 Increase/ (Decrease) QoQ 130 -286 -156 (₹ crore) ❑ With dedicated efforts, debt level including acceptances has started declining and has reached Rs. 5,919 Cr as on 30th Sep’22, a reduction of Rs. 156 Cr vis-à-vis last quarter; targeting further reduction in H2 FY23 ❑ Net Working Capital (NWC) stands at 148 days as on 30th Sep’22. We c
Status
Diversity has increased by 4% YoY in FY22 Occupational Heath & Safety Target: Work towards the goal of achieving Zero accidents
Status
LTIFR has reduced to 0.26 in FY22 vis-à-vis 0.68 in FY21, a reduction of 62% YoY Corporate Social Responsibility Target: Reach 2 lac CSR beneficiaries by FY 26
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