• Operating income net of GST/excise was up by 26% to Rs 2404.94 crore facilitated largely by sharp jump in revenue of T&D and railways.

• Operating profit margin expanded by 70 bps to 10.2%. Expansion in OPM is largely due to lower staff and other expenses. While material cost, which as a proportion to sales net of excise, was higher by 350 bps to 47.9% and subcontracting charges nearly stay flat at 23.9%, the staff cost was down by 160 bps to 8.1%. Similarly the other expenses was down by 290 bps to 9.8%. Thus gained by higher sales and higher OPM the operating profit was up by 34% to Rs 244.12 crore.

• Other income was up by 76% to Rs 12.31 crore. The interest was up by 4% to Rs 60.66 crore and depreciation was down by 9% to Rs 27.17 crore. Thus the PBT (before EO) was up by 68% to Rs 168.60 crore.

• EO income for the quarter as well as corresponding previous period was nil. Thus the PBT (after EO) was up by 68% to Rs 168.60 crore. The current tax was higher by 44% to Rs 47.35 crore. Thus the growth at PAT was 79% to Rs 111.77 crore. The share of loss from associates is nil for the quarter as well as corresponding previous period.

• Other comprehensive expenses was lower by 74% to Rs 4.14 crore and thus the total comprehensive income was up by 129% to Rs 107.63 crore.

Nine month performance

Consolidated sale was up by 11% to Rs 6393.85 crore. The OPM was up by 100 bps to 10.0% and thus the operating profit was up by 23% to Rs 636.29 crore. After accounting for higher other income, lower interest and lower depreciation the PBT (before EO) was up by 57% to Rs 400.89 crore. With tax rate stand lower the PAT was up by 66% to Rs 264.11 crore.

Order book

Current unexecuted order book of the company stands at Rs 17148 crore as end of Dec 2017. YTD order inflow was at Rs 11300 crore.

Management comment

Vimal Kejriwal, MD & CEO, KEC International commenting on Q3FY16 performance quoted "Our revenue and profitability are growing in accordance with our expectations. Our robust order book and a strong L1 pipeline gives us confidence to achieve our growth targets."