Q3 2025 KEC International Ltd Earnings Call Transcript
Key Points
- KEC International Ltd (BOM:532714) successfully transferred its Cables business to a subsidiary, KEC Asian Cables Limited, effective January 1, 2025, unlocking growth opportunities.
- The company achieved a record order intake of INR22,000 crores year-to-date, with a 70% increase year-on-year, primarily driven by the T&D business.
- KEC International Ltd reported a strong EBITDA growth of 22% in Q3 and 20% over nine months, with EBITDA margins expanding by 80 basis points to 7% in Q3.
- The company reduced its interest cost as a percentage of revenue by 10 basis points in Q3 and 30 basis points over nine months, enhancing its bottom line.
- KEC International Ltd's T&D business achieved a revenue growth of 17% in the quarter, driven by strong execution across projects, especially in India.
- Revenue growth was impacted by delayed payments from clients, labor shortages, and currency depreciation in Brazil.
- The Civil business faced challenges due to ongoing labor shortages and delayed payments in water projects, affecting revenue growth.
- The Transportation business experienced a revenue decline of 30% in the quarter, with challenges in execution due to client-related issues.
- Working capital challenges persisted, with significant receivables in the water segment impacting debt reduction efforts.
- The company revised its revenue growth guidance for the year from 15% to a range of 12% to 14%, indicating challenges in meeting initial targets.
Ladies and gentlemen, good morning, and welcome to the KEC International Limited Q3 FY25 earnings conference call. Today on the call, we have with us Mr. Vimal Kejriwal, Managing Director and CEO, and Mr. Rajeev Agarwal, Chief Financial Officer. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Vimal Kejriwal, Managing Director and CEO from KEC International Limited. Thank you, and over to you, sir.
Thank you, Ryan. Good morning. We welcome you all to the Q3 earnings call of KEC. I will begin with an update on the key development during the quarter and thereafter talk on the performance highlights for the quarter and nine months, along with the highlights of the respective business units.
In line with our strategy and targeted timelines, we are pleased to share the successful transfer of our Cables business to KEC Asian Cables Limited, a subsidiary of KEC effective January 1,
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