Q3FY21 Result Update - KEC International - ICICI Direct

KEC reported a steady set of Q3FY21 numbers. Topline came in at Rs. 3289.2 crore, up 7% YoY, (below our estimate of Rs. 3588.0 crore aided by strong growth in non-T&D. Overall, T&D contributed 55% followed by railways (26%), cables (9%) and civil (8%) to revenues. EBITDA margins came in at 9.1% (below our estimate of 9.5%), down 130 bps YoY mainly impacted by execution headwinds in SAE (Brazil) and commodity prices, while absolute EBIDTA came in at Rs. 298.7 crore, declining 6.2% YoY. PAT came in at Rs. 145.1 crore, flat on a YoY basis.

Valuation & Outlook

KEC delivered a steady Q3FY21 performance driven by strong growth in non-T&D segment amid challenges in T&D-SAE and commodity price impact. However, T&D likely to rebound in medium term providing further accelerated execution. Also, with a backlog of Rs. 17918 crore, strong profitable traction in railways, civil business will further derisk its business model in the medium term. We introduce FY23E estimates and expect KEC to deliver revenue, EBITDA, PAT CAGR of 10.4%, 10.3%, 13.4%, respectively, in FY20-23E. We revise our target price to Rs. 450/ share (earlier TP Rs. 410/ share) with 14x on FY23E EPS and maintain our BUY rating.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_KECIntl_Q3FY21.pdf

Shares of KEC INTERNATIONAL LTD. was last trading in BSE at Rs.359.9 as compared to the previous close of Rs. 357.95. The total number of shares traded during the day was 25970 in over 1657 trades.

The stock hit an intraday high of Rs. 363.7 and intraday low of 349.7. The net turnover during the day was Rs. 9229139.

Source : Equity Bulls

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