KEC International - Strong Order Book, Scalability Potential In Rail, Civil Are Key Positives: Nirmal Bang
Mgmt highlighted that the ordering outlook remains strong with tenders under evaluation and in pipeline standing at Rs 1.1 trn.
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Nirmal Bang Report
We hosted management of KEC International Ltd. as part of our virtual investor conference to gain insights into the current business environment, ordering outlook, commodity costs and supply chain headwinds, besides the company’s outlook going ahead.
The management highlighted that the ordering outlook remains strong with tenders under evaluation and in the pipeline standing at Rs 1.1 trillion.
Final legacy projects in Brazil have been completed and the management expects commissioning of the same in Q3 FY23 itself. It further expects revival in SAE Towers Holding LLC's performance Q4 FY23 onwards.
KEC’s margins were affected mainly by elevated commodity and logistics costs and SAE Brazil’s performance. However, with exposure to the legacy projects largely reduced (5% of orderbook), we believe that margins are likely to improve Q3 FY23 onwards as KEC starts executing projects booked under the current commodity prices.
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