KEC Int'l Bags Order Worth Over ₹1,200 Cr, Vimal Kejriwal's Outlook On Orders | Business News

Summary

KC International's MD and CEO, Vimal Krial, discusses the company's recent ₹1267 crore order intake, with a focus on green energy projects. Despite challenges in the Indian power sector, Vimal is optimistic about growth, citing government support for renewable energy. The company is targeting a 20% growth in India's T&D sector for the next year and expects at least 15% overall growth by FY26. Vimal also reassures that tariffs and trade tensions won't heavily impact their exports, particularly to the U.S. and Mexico, as demand for their transmission products remains strong.

Takeaways

• 😀 KC International has secured new orders worth 1267 crore rupees across its T&D and cable businesses.
• 😀 85% of the new orders are from the transmission and distribution (T&D) business, while 15% are from the cable sector.
• 😀 T&D order execution will start immediately, while cable orders are expected to begin within the next couple of months.
• 😀 KC International expects revenues from these orders to start flowing in by Q1 of the next fiscal year.
• 😀 Despite a slowdown in India's power sector, KC International remains optimistic due to its focus on green energy, which is backed by government support.
• 😀 Only 20-25% of KC International’s order book is dependent on PowerGrid, showing a diversification in their business.
• 😀 The company’s growth is also supported by significant orders from international markets, particularly from Mexico and India.
• 😀 KC International's exports to the U.S. are largely unaffected by tariffs, as their products, such as transmission towers, are in high demand in the U.S. market.
• 😀 Competitors from China and Turkey have already been excluded from the U.S. market, giving KC International an advantage.
• 😀 The company is not considering shifting manufacturing to the U.S. yet, as it sees Saudi Arabia as a more promising market for expansion.
• 😀 For FY26, KC International targets at least a 15% growth, driven by the growth in the T&D sector and green energy orders.

Q & A

What is the total value of the new orders received by KC International?

KC International received new orders worth ₹1,267 Crores across their various business sectors.

What percentage of the new orders is from the Transmission and Distribution (T&D) sector?

Approximately 85% of the new orders are from the T&D business sector.

When will KC International start executing the new orders from the T&D and cable businesses?

Execution for the T&D orders will start immediately, while execution for the cable orders will begin in one to two months.

What is KC International's perspective on the impact of the slowdown in the Indian power sector?

Despite a slowdown in the power sector, KC International remains optimistic, especially due to its focus on green energy. The company does not anticipate a significant impact in the near future, as government efforts are pushing for more capacity in this sector.

How does KC International view the relationship between power grid capex and its business growth?

Power grid capex is still an important indicator for KC International's growth, particularly for the Indian T&D market. However, the company is diversifying its business beyond just power grid investments.

How much of KC International's order intake comes from international markets?

KC International's order intake for this year includes around ₹17,000 Crores, with approximately ₹7,000 Crores from India and ₹10,000 Crores from international markets.

What is the company’s exposure to the US market and its potential impact from tariffs?

KC International has a limited exposure to the US market, with exports of transmission towers and monopoles from Mexico and India. The company believes the impact of US tariffs will be minimal, as the products are in high demand in the US, and competitors like China and Turkey are already absent from the market.

Is KC International considering shifting manufacturing to the US in light of potential tariffs?

At the moment, KC International is not considering shifting manufacturing to the US. The company plans to wait and see how tariffs develop but is more inclined to explore manufacturing in larger markets like Saudi Arabia.

What is KC International’s growth forecast for the Indian T&D sector next year?

KC International expects a 20% growth in the Indian T&D sector next year, based on the expected 15-18% growth in disbursements in the overall sector.

What is the company’s overall growth projection for FY26?

KC International projects an overall growth of at least 15% for FY26.