In chat with Zee Business Managing Editor Anil Singhvi, Managing Director (MD) and Chief Executive Officer (CEO) of KEC International, Vimal Kejriwal talks about company’s new orders, business outlook, debt situation and more. (#NewsParViews)   

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Kejriwal said that out of the Rs 1140 cr new orders, 85 per cent is related to international T and D (Transmission and Distribution) while the remaining 10 per cent and 5 per cent is of Railways and civil. He said that though the current orders from railways are small, they are expected to go up going forward. As for civil segment, KEC International has made an entry into oil and gas sector, he further said.  

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The MD said that the interesting thing about its current orders is that they are from the segments where KEC Wanted to go ahead. 

KEC International a RPG Goenka Group Company has a strong hold in the EPC (Engineering Procurement and Construction) segment. With businesses over 100 countries, KEC International is India’s second biggest electric power transmission tower manufacturer.  

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Size of Order Book 

Kejriwal said that the orderbook is worth Rs 19,800 cr. It also has L1 worth Rs 6,500 cr. This takes the order book value to Rs over 26,000 cr, he said. The last year’s revenues were around Rs 12,000 cr. 

Business Scenario and outlook 

Kejriwal said that the orders are coming from Railways and Civil sectors. The T and D orders are coming from international sources. He said that India T and D still looks weak. 

On Debts 

The long term debts are going down gradually. They are now at Rs 53 cr from 541 cr in March 2019. Meanwhile short term debt is rising. The CMD said that the company does not have a big capital expenditure. It buys construction equipment worth Rs 200-Rs 250 cr annually. The company has repaid it long term debt whose interest rates were quite high. The entire working capital now is in the form of debts, he said. The interest rates is being leveraged well which is bringing down the cost, he further said. 

Shares of KEC International today ended at Rs 459.30, down by 0.8 per cent.