HDFC Securities: KEC International On Track For Accelerated Recovery 
Power transmission lines at Bawana, Delhi, India (Photographer: Udit Kulshrestha/Bloomberg)

HDFC Securities: KEC International On Track For Accelerated Recovery 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Report

The key takeaways from KEC International Ltd.’s FY20 annual report are as follows:

1) a geographically well-diversified order book and robust pipeline; International transmission and distribution (SAARC/Middle East and North Africa, ex-SAE Towers) and Civil and Railways would continue to drive growth in FY21E.

2) moderate profitability, dipped in FY20.

3) incremental borrowing cost (current interest rate less than 7%) has come down (FY20 finance cost at 2.8%; -20 basis points YoY); approximately 55% debt is in forex.

4) sustained increase in wheeling charges intensity has led to lower cash flow from operations/Ebitda over past two years, but net working capital is stable.

Our channel checks for capital goods suggest that well-diversified companies are witnessing accelerated recovery in execution as international operations remain mostly unaffected while the labour situation is improving locally.

Click on the attachment to read the full report:

HDFC Securities- KEC International Annual Report.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

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