In an interview with CNBC-TV18, Vimal Kejriwal, the MD & CEO of the corporate, expressed confidence, stating, “We have now given a steering of 8-9% for subsequent 12 months, and I feel we’re fairly hopeful of achieving that as a result of a big quantity of legacy projects have began getting over or have already been accomplished in FY25. So, I feel FY26 and FY27 ought to positively be higher on the margin aspect.”
Trying forward, the corporate anticipates that the Transmission & Distribution (T&D) and civil sectors shall be key drivers for progress in their order e book. Kejriwal highlighted the continued dominance of the T&D phase, stating, “Even this 12 months, out of an order consumption of as much as ₹25,000 crore, 72% is T&D. And for those who take a look at that quantity, amongst T&D, virtually 60% is worldwide and 40% is India. So, T&D will clearly drive.” The civil sector, significantly in residential and water projects, can be anticipated to contribute considerably to future order inflows.
The corporate can be seeing a considerable enhance in its bidding pipeline, which has now reached ₹1.7–₹1.75 lakh crore. This progress is essentially attributed to alternatives in the Center East, particularly Saudi Arabia, and a resurgence in water venture bids.
For FY26, KEC International is aiming for a robust order influx of over ₹30,000 crore, anticipating a progress of round 15%. Within the final quarter (January to March 2025), the corporate secured orders price roughly ₹6,000 crore. Whereas the overall order influx for all the fiscal 12 months was near ₹25,000 crore, barely beneath the corporate’s preliminary steering.
At present, KEC International holds a sturdy order e book of round ₹37,000 crore to ₹38,000 crore, which incorporates projects the place the corporate is the bottom bidder (L1) however the closing order is but to be acquired.
This optimistic outlook comes at a time when KEC International has not too long ago introduced bagging new orders price ₹1,236 crore for its T&D projects in India and West Asia.
Under is the verbatim transcript of the interview.
Q: What was the overall order influx that you simply noticed in January to March quarter (Q4FY25)? Additionally, for the 12 months, it seems that you’ve got surpassed the steering that you simply had given on order inflows. So, what’s the quantity you’re ending at?
Kejriwal: I feel Q4FY25, if I am not mistaken, was round ₹6,000 crore of order consumption. We’re nonetheless L1 in some of them. However anyway, we’re very near ₹25,000 crore. We have now not really surpassed the steering in that sense as a result of we’re barely beneath ₹25,000 crore. We had stated we’ll do ₹25,000 crore. And for those who take a look at these orders, 55-60% is from transmission, after which civil, after which cables. I feel that is the broad breakup of this explicit new order.
Q: What about for the approaching 12 months? Because you’re saying you are L1 in some positions, may you quantify the e book at which you are L1? And for FY26, what type of order influx are you taking a look at? What does this take your present order e book to?
Kejriwal: Our order e book plus L1 presently is round ₹37,000–₹38,000 crore. It is going to go down barely as a result of we’ll nonetheless should issue in what could be the March revenues, and so on. So, I feel broadly, we’ll find yourself round ₹36,000–₹37,000 crore, together with L1, for the 12 months. That’s our expectation. We anticipate to develop by 15% or so subsequent 12 months. So, we’re nonetheless figuring out the order consumption goal, however it should positively be ₹30,000 crore-plus.
Q: Trying on the total surroundings and the way you are wanting on the bidding pipeline forward for this 12 months, FY26 — I imply, we have mentioned this in the previous, that the margin profile didn’t enhance as a lot as you’ll have favored in Q3, however you have at all times maintained that FY26 and FY27 shall be a lot better from a margin growth perspective. I imply, you have been speaking about ranges of possibly even 9%. So, wanting on the bidding depth and the pipeline, are you continue to confident of attending to these ranges?
Kejriwal: So, to me, what is occurring is the bidding pipeline is certainly rising. We’ve at all times been speaking about round ₹1.4 lakh–₹1.5 lakh crore of tender pipeline — proper now it’s gone above that. It’s virtually ₹1.7 lakh–₹1.75 lakh crore. A big half is pushed by the Center East, and particularly Saudi Arabia. We’re seeing water projects that had been on maintain getting bid out. So, some traction we’re seeing on the water aspect additionally, which is why the bidding pipeline appears to have elevated by ₹20,000–₹25,000 crore as in comparison with final time.
On margins, I feel we’re fairly snug. We have now given a steering of 8-9% for subsequent 12 months, and I feel we’re fairly hopeful of achieving that as a result of a big quantity of legacy projects have began getting over or have already been accomplished in FY25. So, I feel FY26 and FY27 ought to positively be higher on the margin aspect.
Q: Which of the segments — I imply, the place are you prone to see most traction? After all, the final couple of orders — you’ve managed a number of orders from the Center East as nicely. In India, in all our previous conversations, you’ve been telling us that clearly the T&D phase has been doing nicely, whereas railways was weak. So now, as you sit up for this 12 months — let’s say speak in regards to the subsequent 4 to 5 months not less than — which segments will drive the order e book progress?
Kejriwal: So, primarily, it should nonetheless be T&D. Even this 12 months, out of an order consumption of as much as ₹25,000 crore, 72% is T&D. And for those who take a look at that quantity, amongst T&D, virtually 60% is worldwide and 40% is India. So, though we perceive India T&D far more and we monitor it extra, I’m simply saying that T&D worldwide can be doing very, very nicely. So, T&D will clearly drive. The second piece shall be civil, which was a bit — I’ll say — low this 12 months in order consumption. We do anticipate that to additionally go up considerably, particularly pushed by residential and the water phase. And we’re nonetheless seeing rather a lot of traction occurring in metals, mining, and so on. Most of our industrial orders have been in the metal phase. So, I feel these are the three areas that we see driving our order e book in FY26.
Q: Up to now — you spoke about labour points that had been turning into a bit of a problem to cope with. Has that been sorted out?
Kejriwal: So, let me put it this fashion, we try unconventional means, which we weren’t utilizing earlier than. For instance, we had been by no means utilizing labour aggregators or contractors like that — so we now have began utilizing them. Clearly, mechanisation has picked up rather a lot. So, we try to see how we are able to optimise the necessity for labour. It’s enhancing. I’d say it’s barely higher than the final quarter.
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