KEC International – Best POWER PLAY
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2662
Printed Date: 20/Apr/2025 at 5:50pm
Topic: KEC International – Best POWER PLAY
Posted By: EquityInv
Subject: KEC International – Best POWER PLAY
Date Posted: 10/Feb/2010 at 7:08am
|
KEC International [CMP: 570] is an excellent powerplay/pickaxe when everybody is busy starting power plants. KEC has made an indelible mark on the world map by constantly & consistently re-engineering itself to retain its position of leadership in the areas of quality, technology, capacity and capability. It has it's presence across the globe. [42 countries]
KEC operates in following verticals : Power Transmission: Turnkey Transmission Lines upto 1200KV Tower Testing upto 1200KV Distribution and Design: Setting up Substation Power Distribution Networks Design Services Balance of Plant Railways Railway electrification Track Laying Signalling Telecommunications Telecom Towers SCADA Optical Fiber Cable Network Installations Hotline Stringing Business scalability in each sector is huge. - Sales growth of 25% CAGR since last 3 years. - EPS growth of 35% CAGR since last 3 years. - Huge scalability of business in all verticals.. - It's pure “Power Play” in power deficieny country like India. - Due to lack of adequate investment on T&D works, the T&D losses have been consistently on higher side. Investment needs to be made to reduce this losses. - The company’s order book is at Rs. 6051 crore. Of this 53% comes from the South Asia market and the balance 47% from the International market. - As per current order book and margin coming back to normal, FY11 should be much better. - It's available at P/E of 13 on expected FY11 diluted EPS of Rs.43+. -Consistently high return ratios.. RoE/RoCE are in 30s since last 4 years [except FY09].. Weakness: High capex business and hence high debt.. But management is working on it and d/e ratio is decreased from 2 in Mar'06 to 1.11 in Mar'09. Currency flucutations.. With it's presence in 42+ countries, more dependency on foreign currency To some extent commodities.. [It's pass on though] ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Replies:
Posted By: studentoflife
Date Posted: 11/Feb/2010 at 5:46pm
The interest paying pattern (latest is first ) for the last couple of quarters.If they are able to maintain or increase this continuously and at the same time have steady cash flows..then for me this company is certainly worth a watch....
Considering operating profits of 300 crores,the debt doest seem too high right now..
But I could get the financial results of the company only for the last four years.Wait and watch for a couple of years is what I would do.
Just following James Rogers rule...
 |
Posted By: EquityInv
Date Posted: 11/Feb/2010 at 9:33pm
|
Yep, debt is not higher relatively.. Morever I think if return on capital is much higher [30%+] than cost of capital [10-12%], then debt act as an advantage. KEC should have big advantage as big investment needs to be made in all 4 verticals in India itself. ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: EquityInv
Date Posted: 23/Feb/2010 at 9:23am
|
http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?autono=312583 - Source
Kec International Limited has informed the Exchange that the company has received intimation from HDFC Asset Management Company Limited on February 19, 2010, disclosing the details of increase in the shareholding of the Schemes of HDFC Mutual Fund in the company by more than 2% of the total paid up capital, in terms of Regulations 13 (3) of the SEBI (Prohibition of Insider Trading) Regulations, 1992. Accordingly, in compliance with Regulation 13 (6) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 and as amended the company has submitted a copy of Form C giving the details of the increase in the shareholding. ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: shontou
Date Posted: 27/Oct/2011 at 9:41pm
|
Conference Call
KEC International FY12 EBITDA Margin will be 9-10% KEC International organized a conference call to discuss the results for the quarter/half year ended Sep 2011. In the conference call the company was represented by R D Chandak (MD & CEO), Vardhan Dharkar (CFO). Key takeaways of the conference call Consolidated Net Revenue for the quarter stood higher by 26.3% to Rs 1263.0 crore and EBITDA was lower by 10% to Rs 90.6 crore as EBITDA margin declined to 7.2% for the quarter compared to 10.1% in the corresponding previous period. The PAT stood lower at Rs 21.2 crore (against Rs 42.7 crore in Q2FY11). Rev mix for Q2FY12 – Transmission South Asia 23%, Transmission International 36%, SAE 19% , Power Systems 7%, Cables 12%, telecom 2%, railways 2%. MTM loss on commodities i.e. aluminium etc amounts to Rs 13 crore and a forex loss of Rs 4 crore for the quarter which impacted the operating margin. In addition there was an increase of Rs 18 crore (up 85% yoy) in interest cost for the quarter that hurt the bottomline. Apart from slow moving orders in Tunisia, Algeria, libya and Egypt which continue to affect the topline growth even some Indian orders executed during the quarter are tight margin ones that have also added to margin pressure. The Order Book stood at Rs 8450 crore (as against Rs 7000 crore in the corresponding previous quarter) translating into a growth of 20.7% yoy. It consist of 58% orders from the International market and 42% orders from the domestic market. Order inflow for the quarter was approx Rs 1200 crore. More than 50% of the order book has the cover of variable clause, even international orders are coming with variable price. Order book mix interms of business wise – Transmission 68.8%, Power Systems 23.4%, Cables 2.1%, Railways 4.4%, Telecom & waters 1.3%. Geography wise order book mix – MENA 13.9%, Africa/Central Asia 24%, Americas 19.4% (with SAE 9.8% & KEC 9.6%), South Asia 42.4% and balance Asia Pacific. Strong global presence and diversified business portfolio/capability facilitates the company to secure good number of orders despite challenging global economic environment. Clear visibility is there for next 18 months. Given the current order book composition the company is confident of managing an EBITDA margin of 9-10% for current fiscal on full year basis. Second half the margin will be higher than that of H1FY12 but it is difficult to say the FY12 margin will be higher than FY11 margin. For H1FY12 the EBITDA margin was 8.2% and that for FY11 it was 10.6%. The Company has recently secured new orders - The 200 crore turnkey order from EEPCO, Ethiopia for the construction of 230 kV transmission line to be completed in 24 months; the Rs 136 crore order for supply of Power and Telecom Cables. Order book under pipeline – every week the company is picking up an order given the company's presence in 30 countries. The Vadodara greenfield HT/EHV cable plant (with a capacity of 3000 cable km/annum) is expected to commence trial production in Q1FY2012-13. Currently the land has been acquired and construction is in progress with machine and equipment orders already placed. Total cost of the project is Rs 150 crore. MENA – the issue are not fully settled even though elections happening in Tunisia, Libya new government to assume charge etc. Even in Egypt the things are yet to settle down. Libya, Tunisia, Egypt and Algeria together accounts for about Rs 400 crore worth of orders in the current order backlog. ------------- Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday? |
Posted By: shontou
Date Posted: 31/Jan/2012 at 8:55am
|
K E C International net profit rises 103.08% in the December 2011 quarter
Sales rise 31.36% to Rs 1141.66 crore Net profit of K E C International rose 103.08% to Rs 71.30 crore in the quarter ended December 2011 as against Rs 35.11 crore during the previous quarter ended December 2010. Sales rose 31.36% to Rs 1141.66 crore in the quarter ended December 2011 as against Rs 869.09 crore during the previous quarter ended December 2010. Particulars Quarter Ended Dec. 2011 Dec. 2010 % Var. Sales 1141.66 869.09 31 OPM % 7.15 9.76 -27 PBDT 103.81 60.15 73 PBT 94.55 51.55 83 NP 71.30 35.11 103 ------------- Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday? |