The order inflows of KEC International during the first half (April 1 to September 30) of FY21 recorded a growth of 16 per cent, over those in the same period of FY20.
KEC International reported new order inflows of Rs.4,366 crore, representing a growth of 16 per cent over that in the first half of FY20.
As of September 30, 2020, the outstanding order book position stood at Rs.19,515 crore. Besides, KEC was in L1 position with respect to orders aggregating around Rs.3,500 crore. This effectively gives an order book position of around Rs.23,000 crore, as of September 30, 2020.
“With operations largely normalized and order book + L1 of around Rs 23,000 crore, we are confident of delivering a good performance in the second half of the year,” a press note by KEC International said.
The overall tender pipeline continues to remain strong across most of the businesses. KEC continues to see significant traction in tendering activities internationally, especially in Middle East and Africa.
In the case of domestic power T&D, the second-phase tenders of Green Energy Corridor projects are in advanced stage, with developers expected to submit their proposals within November 2020. The bidding process is expected to be concluded in Q3 (October to December). In case of Railways, though tendering activity has started picking up Q2 onwards, KEC is still witnessing delay in awarding of contracts.
Business updates:
Power T&D: Despite the intermittent issues due to localized restrictions, excessive rainfall in some regions and reduced labour strength initially during Q2 of FY21, KEC’s core power T&D business as well as that of SAE Towers have been successful in maintaining revenues at the same level as the corresponding quarter.
Railways: In Q2 of FY21, the railways business secured its first order for metro electrification works. This marked KEC’s entry into the technologically-enabled areas of urban infra. As of September 30, 2020, railway order book position was around Rs 5,300 crore.
Smart infra: Execution of existing orders both in the solar and smart infra are on track. Additionally, the Smart Infra business has secured new orders in defence, which has expanded KEC’s presence in the Defence sector from the current civil projects, to smart infra projects.
Dubai facility: The-recently acquired transmission tower manufacturing facility in Dubai has started commercial production. KEC has already received a few orders for tower supplies from other EPCs as well as approvals from some of our existing international clients for tower supplies, the dispatches from Dubai are expected to commence within November 2020.
