Q4 2024 KEC International Ltd Earnings Call Transcript
Key Points
- KEC International Ltd (BOM:532714) achieved its highest-ever quarterly revenues of INR 6,165 crores in Q4 FY '24, marking a 23% sequential growth and 12% year-on-year growth.
- The company reported a significant improvement in profitability, with EBITDA growing by 37% year-on-year and EBITDA margins improving by 120 basis points to 6.3%.
- KEC International Ltd (BOM:532714) secured orders worth approximately INR 6,500 crores in Q4 across various businesses, primarily driven by India T&D and Civil segments.
- The company achieved a reduction in net working capital by 21 days, now standing at 112 days as of March 31, 2024, compared to 133 days as of September 30, 2023.
- The Board of Directors recommended a dividend of 200%, reflecting strong confidence in the company's performance and strategy.
- The railway business experienced a revenue decline of 17% for the year, with continued challenges in execution and increased competition impacting margins.
- Supply chain bottlenecks, particularly in DI pipes for water projects and high-voltage transformers/GIS for T&D projects, affected revenue and margin growth.
- Despite improvements, the company's net debt, including acceptances, remained high at around INR 5,090 crores as of March 31, 2024.
- The company faced delays in revenue recognition due to supply chain issues, resulting in deferred revenues of approximately 400-500 crores.
- The order intake for FY '24 was lower than expected, partly due to deliberate slowdowns in certain sectors and increased competition in international markets.
Ladies and gentlemen, good day and welcome to the KEC International Limited's Q4 FY '24 Results Conference Call.
We have with us today from the management Mr. Vimal Kejriwal, Managing Director and CEO; and Mr. Rajeev Agarwal, CFO.
(Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Vimal Kejriwal, Managing Director and CEO, for his opening remarks. Thank you.
And over to you, Mr. Kejriwal.
Thanks, Michelle. Thank you. Good morning, everyone, and welcome to the Q4 Earnings Call of KEC.
Let me begin with an overview of our overall performance and then go into the specifics of each business segment and our key strategic initiatives. We have delivered a good performance for the year by achieving all-time-high revenues, substantial improvement in profitability, key order wins and significant improvement in working capital and debt levels. Additionally, we have
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