KEC International, a leading infrastructure company, announced on Wednesday, October 23, that it has bagged new orders worth ₹1,142 crore across various businesses, continuing its strong momentum in securing large projects globally.

The company’s Transmission and Distribution (T&D) business secured a prestigious 380 kV transmission line project in Saudi Arabia, a key market for its transmission infrastructure operations. Additionally, it received significant orders for the supply of towers, hardware, and poles in the Americas, further expanding its presence in the global transmission infrastructure market.

KEC International's railways business also bagged an order to construct bridges and associated works for a railway line in the conventional segment in India. This order strengthens the company's growing railways portfolio, marking its presence in critical rail infrastructure projects across the country.

Moreover, the company’s cables business secured orders for the supply of various types of cables in both India and overseas markets, demonstrating its capability to cater to domestic and international demands.

Vimal Kejriwal, Managing Director and CEO of KEC International, expressed his satisfaction with the continuous inflow of orders, highlighting the company's strong growth trajectory. He noted, "With the above orders, our YTD (Year-To-Date) order intake stands at ₹13,500 crore, reflecting a robust growth of over 50% compared to last year."

This series of new project wins highlights KEC International's expanding footprint in key markets and demonstrates its ability to secure major contracts across a diverse range of sectors, including transmission, railways, and cables. The company's expertise in managing complex infrastructure projects on a global scale is well-recognized, and the recent order inflows further solidify its leadership in the infrastructure sector.

QIP Funding and Debt Reduction:

In a separate update, KEC International had earlier raised ₹870.16 crore through a Qualified Institutional Placement (QIP) on September 26, issuing 91,11,630 equity shares at ₹955 per share, which included a premium of ₹953 per share. The QIP was aimed at reducing the company’s debt burden and strengthening its balance sheet.

Vimal Kejriwal, while discussing the QIP, informed CNBC-TV18 that a significant portion of the ₹870 crore raised via QIP would be used for debt reduction, with around ₹20-25 crore allocated towards general corporate expenses. This move is expected to enhance the company's financial stability, enabling it to pursue growth opportunities with greater focus and efficiency.

KEC International has been on an aggressive path of securing high-value projects in international markets, particularly in the Middle East, Americas, and Asia-Pacific (APAC) regions. The company’s expertise in transmission infrastructure and railways, combined with its growing presence in the cables business, positions it well to tap into new opportunities in these regions.

Stock Performance:

As of Wednesday, KEC International shares closed 0.44% lower at ₹931 apiece on the BSE (Bombay Stock Exchange). However, the stock has delivered a stellar performance this year, gaining 53.74% in 2024 so far. Investors have shown strong confidence in the company’s growth prospects, as reflected in its consistent stock market performance.

The company’s robust project pipeline and its ability to consistently secure large orders bode well for its future growth. With the YTD order intake now at ₹13,500 crore, KEC International is well on track to continue its growth trajectory, driven by its diverse business segments and international expansion.

Future Outlook:

Looking ahead, KEC International is expected to focus on executing these large-scale projects efficiently while maintaining a strong financial position through debt reduction and effective capital allocation. The company’s emphasis on expanding its global footprint and securing large-scale infrastructure projects will continue to be a key driver of its growth in the coming years.

In conclusion, the recent order wins and financial prudence through QIP demonstrate KEC International's commitment to maintaining operational excellence and strengthening its position in the global infrastructure space. The company’s leadership in transmission infrastructure, railways, and cables businesses, combined with its strong order book, positions it for sustained growth in the infrastructure sector.

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This detailed breakdown of KEC International's recent developments, including the significant orders and financial strategy, reflects the company's growth ambitions and its leadership in the infrastructure space.