Dolat Capital: KEC International Delivers Better-Than-Expected Execution In Q1; Valuations Undemanding
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Dolat Capital Report
KEC International Ltd. has reported better-than-expected revenue, Ebitda and profit after tax. This was mainly due to improved operational capacity at 80% as compared to 50% earlier and a subsequent improvement in revenues in May and June almost at par with FY20 levels.
The company has reduced manpower cost on a sequential basis and has managed to recover domestic transmission and distribution margins due to lower interest costs and sustainable cost savings.
The management has not given guidance for FY21, we are building in a flat/15% topline growth in FY21E/22E and maintain our FY21E and FY22E estimates.
The company has a strong order pipeline and book at 18 months of sales. With an execution ramp up under metro and international T&D segments it will be able to maintain margins and revenues in FY21.
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