KEC International (KEC) Q1 24/25 earnings summary

Executive summary

• Achieved robust order intake of over INR 7,664 crore in Q1 FY25, up 70% year-over-year, with a record order book plus L1 position exceeding INR 42,000 crore.

• Revenue for the quarter reached INR 4,512 crore, a 6% increase compared to Q1 last year, with EBITDA up 20% year-over-year and PAT doubling to INR 88 crore.

• Margins improved, with EBITDA margin at 6.5% and PAT margin at 1.9%; net debt reduced by over INR 100 crore year-over-year.

• Strong growth across core segments: T&D, Civil, Oil & Gas, and Renewables, with notable improvement in profitability.

• Strategic focus on capitalizing on infrastructure opportunities and sustainability initiatives.

Financial highlights

• EBITDA margin improved to 6.5%, up 70 bps year-over-year; PAT margin at 1.9%; PBT margin rose by 140 bps to 2.5%.

• Interest expenses reduced by 30 bps as a percentage of revenue, now at 3.4%.

• Net debt including acceptances stands at INR 5,596 crore as of June 30, 2024, reduced by over INR 100 crore year-over-year.

• Realized INR 160 crore collections from Afghanistan; SAE debt reduced by over 40% to INR 300 crore.

• EBITDA for Q1 FY25 includes INR 24 crore from an arbitration award (non-recurring item).

Outlook and guidance

• Maintains guidance of INR 25,000 crore order intake, 15% revenue growth, and 7.5% EBITDA margin for FY25.

• Expects H2 to see a significant pickup in execution and margins, with no risk to annual growth targets.

• Civil business projected to grow revenue by 30% for the year.

• Margins expected to improve further in FY26, potentially exceeding 7.5%.

• Positioned to benefit from large infrastructure investments in India and globally, especially in T&D, renewables, and civil segments.