KEC International (KEC) Q3 24/25 earnings summary

Executive summary

• Achieved record YTD order inflows of over ₹22,090 crores, up over 70% year-over-year, with 70% from T&D segment.

• Revenue for Q3 FY25 at ₹5,349 crores, up 7% year-over-year; nine-month revenue at ₹14,975 crores, up 9%.

• EBITDA for Q3 FY25 grew 22% year-over-year to ₹374 crores, with margin expansion to 7%, highest in three years.

• PAT for Q3 FY25 rose 34% year-over-year to ₹130 crores; 9M FY25 PAT up 55% year-over-year to ₹303 crores.

• Strategic transfer of cables business to subsidiary effective January 2025 and capacity expansions in T&D and cables underway.

Financial highlights

• Q3 EBITDA margin expanded by 80 bps to 7%; nine-month margin at 6.6%, up 60 bps year-over-year.

• Q3 FY25 PBT at ₹160 crores, up 32% year-over-year; 9M FY25 PBT at ₹385 crores, up 65%.

• Interest cost as % of revenue reduced to 3.2% in Q3 and 3.3% for nine months.

• Net debt at ₹5,574 crores as of Dec 31, 2024, down ₹471 crores year-over-year.

• Net working capital at 134 days as of Dec 31, 2024.

Outlook and guidance

• FY25 revenue growth guidance revised to 12%-14% from earlier 15%.

• FY26 expected revenue growth of at least 15%, with margin improvement to 9%-10%.

• T&D segment expected to contribute over 60% of revenue next year, supporting higher margins.

• Working capital days targeted at 110-115 by year-end.

• Strong government focus on infrastructure and renewables expected to drive future growth.