KEC International hosted a conference call on May 29, 2020. In the conference call the company was represented by Vimal Kejriwal, MD & CEO
Key takeaways of the call
Order Intake in Q4FY20 stood at Rs 2765 crore and that for FY20 was Rs 11331 crore. Of the FY20 order intake 78% was domestic orders with 22% international. Further the company received orders worth Rs 739 crore so far in FY21.
Order book including L1 orders stands at about Rs 24000 crore. Of the order book about 36% is international with balance domestic. Of the order book T&D is 54% (SAE 5%; T&D 49%) , civil 13%, railways 29%. Considering it robust and well diversified order book the company is confident of delivering a strong performance in FY21.
India T&D Orders will be higher than last year. India order pipeline is looking better than last 2 year. Most of the tenders from PGCIL & SEBs are currently postponed and expect this will be quoted and finalized soon. Tenders for orders worth about Rs 35-40000 crore are in pipeline.
International order inflow in last year was subdued/bad however the order pipeline is good. Despite weak crude prices, the ordering is good in Middle East especially in countries such as Oman, Saudi Arabia and UAE. In SAARC lot number tenders especially in Bangladesh & Nepal are expected to be floated and quoted. In Africa also there is decent number of projects are in pipeline.
Revenue loss/slippage in Q4FY20 on account of lockdown in Mar 2020 was about Rs 500-600 crore.
About 85% of projects are operational right now. Has to live with 25-30% reduced labour force going forward.
Civil revenue is not a concern and the company expects a revenue of Rs 1500 crore for FY21 from civil business. The four metro projects are in urban centre and of which the company got clearance for construction in case of Kochi Metro and in case of DMRC the company right now is doing piling. The works on six residential projects were going on during covid time as well. However the private industrial parks are a concern.
Railway ramp-up has progressed quite well and may contribute about 30%+ growth for FY21 as well. Railways have not cut capex budgeted. About Rs 9000-10000 crore worth of railway tenders are to be quoted by June 2020.
Most of the contracts has variation clause.
Newly acquired Dubai facility to be levered for securing orders.
SAE is expected to register flat or marginally negative growth in FY21
Capex will be about Rs 100 crore for FY21 against earlier planned Rs 200-250 crore.
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