KEC International Ltd has reported its highest-ever order inflow in FY23.
In an official release, KEC International said that during FY23 (April 1, 2022, to March 31, 2023), the RPG Group company received new orders worth Rs.22,378 crore. This was nearly 30 percent higher than the comparable level in FY22, and also the company’s highest in any year so far.
As of March 31, 2023, the outstanding order book stood at Rs.30,553 crore which was nearly 29 percent higher than the corresponding level of March 31, 2022. In addition, KEC International was L1 in contracts worth over Rs.3,500 crore. Thus, KEC’s potential outstanding order book position (confirmed + L1) was over Rs.34,000 crore.
Distribution of order intake
According to an investor presentation filed on stock exchanges, KEC ‘s order intake in FY23 was rather evenly distributed between the power T&D and non-power T&D segments. Power T&D accounted for 47 percent of the FY23 order inflow and stood at around Rs.10,518 crore in value terms. Of these power T&D sector inflows, orders booked by SAE Towers – the overseas subsidiary of KEC International operating mainly in Brazil and Mexico – stood at around Rs.1,566 crore.
The Civil business had a share of 30 percent in the total order intake of FY23, followed by the Railways business with 13 percent. The remaining 10 percent was distributed among the Cables, Solar, and Oil & Gas businesses. (see table)
In the overall FY23 order intake of Rs.22,378 crore, domestic orders accounted for 72 percent with the remaining 28 percent coming from the overseas markets.
The Power T&D business had an identical share of 47 percent in the outstanding order book as of March 31, 2023. This was followed by the Civil business with a 33 percent share and the Railways business with 13 percent.
Domestic orders accounted for 69 percent of the outstanding order book position, as of March 31, 2023. In value terms, domestic orders amounted to around Rs.21,081 crore while overseas ones aggregated around Rs.9,472 crore.
Also read: KEC International Records 30 Per Cent Growth In FY23 Order Inflows
Improved performance
In the release that also spoke about the company’s financial performance in FY23, Vimal Kejriwal, MD & CEO, KEC International Ltd, “We have delivered a notable performance for the year by achieving the highest-ever revenues and order intake and considerable improvement in working capital. The EBITDA margins of the last two quarters have improved sequentially from 4.4 percent to 5.1 percent. We are also pleased that SAE Brazil has delivered a positive EBITDA for Q4 FY23 and is on track to deliver a gradual improvement in profitability in the coming quarters. The uptick in order intake has enhanced our order book and L1 stand at over Rs.34,000 crore. Our focus on cash flows and working capital have brought down our Net debt including acceptances by around Rs.1,100 crore in the last three quarters. With a robust order book and L1 and a strong focus on execution, we are confident of delivering improved performance for both revenues and margins.”
(Editor’s Note: T&D India carried a story on KEC’s order inflows in FY23 on April 6, 2023. However, the current story has more details, particularly with respect to the segment-wise distribution of order inflows and outstanding order book position.)
