KEC International Q3 net profit down 35% to Rs 19.15 crore

KEC International, the flagship firm of the diversified RPG Group, today reported about 35 per cent decline in its consolidated net profit to Rs 19.15 crore for the quarter ended December 2013, primarily due to rise in finance costs and tax outgo.

The company, which operates as Engineering, Procurement and Construction (EPC) contractor, had reported a net profit of Rs 29.33 crore in the year-ago period.

Net sales of the company, however, rose 23 per cent to Rs 2,180.16 crore in the last quarter from Rs 1,772.56 crore in Q3 FY'13, it said in a filing with the BSE.

Its total expenditure stood at Rs 2,077.54 crore, amounting to 95.29 per cent of net sales. Finance costs of the company rose nearly 37 per cent to Rs 72.35 crore, while the tax outgo was up over two-and-a-half times to Rs 34.91 crore.

In a separate statement, the company said it has secured new orders worth Rs 608 crore recently in transmission, cables and water businesses.

With these orders, the total order book of KEC International stands at Rs 10,250 crore, the company said, adding that overseas orders account for 58 per cent of its total orders.

"Strong execution and robust order book has helped us inachieving good top line growth. Further, our profitability is gradually improving every quarter," the company's managing director and CEO Ramesh Chandak said.

He further said that KEC has secured new orders worth Rs 7,100 crore this fiscal, giving the company "good visibility for the coming quarters".

KEC International is an EPC major, having presence in many countries and operates in several business verticals including power transmission, power systems, cables, railways, telecom and water.

Shares of the company were trading at Rs 54.05, up 3.54 per cent, on the BSE at 1500 hours.