KEC International has reported an order book position (including L1) of over Rs.30,000 crore that is the highest level in the company’s history.
In a statement discussing the financial results of the company for the first quarter (April to June) of FY23, KEC International said that it had an order book of Rs.23,720 crore as of June 30, 2022. Including orders where KEC is in L1 position, the overall order pipeline was in excess of Rs.30,000 crore, KEC said.
The company’s order book as of June 30, 2022 (excluding L1) was 16 per cent higher than the comparable level of Rs.20,434 crore in 2021.
Commenting on the company’s performance, Vimal Kejriwal, MD & CEO, KEC International, said, “We are pleased with our healthy revenue growth and order intake, despite significant challenges. The growth has been delivered by good performances in most of our businesses such as T&D, Civil, Railways, Oil & Gas and Cables. The consolidated margins have been impacted primarily due to the elevated commodity prices & logistics costs and SAE Brazil performance. With the new orders announced last week, our order book along with current L1 pipeline stands at a record level of over Rs.30,000 crore. Our robust and well diversified order book gives us confidence of delivering a continued good growth in the coming quarters.”
Also read: Vimal Kejriwal, MD & CEO, KEC International Ltd
Order inflow
This decline could be partly explained by lower orders booked by SAE Towers, KEC International’s overseas subsidiary. The share of orders booked by SAE Towers in Q1 of FY23 dropped to 7 percent, from 12 per cent in the same period of FY22 (see table). All the same, power T&D orders (excluding those by SAE) enjoyed a higher share of 29 per cent, as against 27 per cent in FY22. Likewise, the share of Civil business orders grew to 36 per cent from 31 per cent.
The share of domestic orders in KEC International’s total order inflow in Q1 of FY23 rose sharply to 85 per cent, from 69 per cent in FY22. The drop in the share of overseas orders to 15 per cent from 31 per cent, was quite perceptible.
It is interesting to observe that the year-on-year decline in order inflow in Q1 of FY23 was attributable to overseas orders. In value terms, domestic orders by KEC International in Q1 of FY23 stood at around Rs.3,000 crore – roughly the same as in Q1 of FY22. However, by the same comparison, overseas orders more than halved to around Rs.520 crore from approximately Rs.1,350 crore.
Featured photograph shows a 400kV transmission line built by KEC International in Jordan. (Photo: KEC International)
