July 27, 2024
New Delhi, India
KEC International, a leading manufacturer of electric transmission towers, has reported a significant increase in its net profit for the quarter ending in June. The company’s profit surged to ₹87.6 crore, more than doubling from ₹42 crore a year ago. This remarkable growth was accompanied by a 6.3% year-on-year increase in revenue, which reached ₹4,512 crore.
Key Financial Highlights:
- Net Profit: ₹87.6 crore (up from ₹42 crore YoY)
- Revenue: ₹4,512 crore (6.3% YoY increase)
- EBITDA: ₹270 crore (10.6% increase)
- EBITDA Margin: 6%
Fundraising Plans:
KEC International has also announced plans to raise up to ₹6,000 crore to support its growth and expansion initiatives. The fundraising will be conducted through a combination of qualified institutional placement (QIP) and the issuance of non-convertible debentures (NCDs).
- Qualified Institutional Placement: The company aims to raise ₹4,500 crore by issuing equity or other equity-based instruments.
- Non-Convertible Debentures: An additional ₹1,500 crore will be raised through private placement of NCDs in one or more tranches.
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Operational Strategy:
This fundraising initiative is subject to the overall borrowing limit approved by KEC International’s shareholders. To ensure a smooth execution, the company has established a committee to oversee the necessary steps and procedures.
KEC International’s robust financial performance in the first quarter, marked by a doubling of net profit and a solid increase in revenue, highlights the company’s strong market position and operational efficiency. The planned ₹6,000 crore fundraising through equity and NCDs will further bolster its capacity to undertake new projects and expand its footprint in the industry. Investors and stakeholders will be closely monitoring the company’s strategic moves and their impact on future growth.
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