KEC International (KEC) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 6% year-over-year to ₹4,512 crore, with EBITDA up 20% to ₹294 crore and margins improving by 70 bps to 6.5%.

• PAT more than doubled to ₹88 crore, with PAT margin rising to 1.9%.

• Order intake surged 70% year-over-year to over ₹7,600 crore, with a record order book plus L1 position exceeding ₹42,000 crore.

• Board approved unaudited Q1 FY25 results on July 26, 2024, reviewed by Price Waterhouse with no material misstatements.

• Management remains confident in achieving 15% annual revenue growth and 7.5% EBITDA margin guidance for FY25.

Financial highlights

• Consolidated revenue for Q1 FY25 was ₹4,511.89 crore, up from ₹4,243.59 crore in Q1 FY24.

• EBITDA margin improved to 6.5% in Q1 FY25, up 70 bps year-over-year.

• PAT more than doubled to ₹88 crore, with margin at 1.9%; basic EPS rose to ₹3.41.

• Net debt, including acceptances, stands at ₹5,596 crore, down by over ₹100 crore year-over-year.

• Interest expense as a percentage of revenue reduced by 30 bps to 3.4%.

Outlook and guidance

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

• H2 expected to see a significant pickup in execution and revenue, with supply chain constraints easing from Q3.

• Focus on profitable growth in Renewables and Cables, with plans to broaden addressable markets and expand geographically.

• Civil business revenue expected to grow 30% in FY25, with robust order book supporting growth.

• Probability of resumption of Afghanistan projects is remote due to ongoing geopolitical risks.