KEC improves in Q2 results

KEC International spurted 14.10% to Rs 353.60 after it reported 100.18% surge in net profit for Q2 September 2006.

1.85 lakh shares changed hands in the counter on BSE. The stock had slipped from its intra-day high of Rs 372.40.

The stock witnessed a steady rally in the past from Rs 247.20 on 22 September 2006, to Rs 310.35 by 31 October 2006, on sustained buying interest.

KEC International reported 100.18% surge in net profit for Q2 September 2006 to Rs 21.68 crore (Rs 10.83 crore). Net sales rose to Rs 467.66 crore (Rs 412.72 crore).

In late August 2006, KEC had bagged orders worth Rs 150 crore from international and domestic markets, taking its order-book to a record Rs 3,000 crore level. This is 1.7 times its FY 2006 sales of Rs 1,727.25 crore. In July, KEC International secured two new orders worth Rs 520 crore from Kazakhstan and Abu Dhabi.

KEC is seen benefiting from privatisation of transmission lines in India. The country urgently needs to strengthen existing transmission networks, with power-generation and demand shooting up. As per reports, the state-owned Power Grid Corporation (PGCIL) is in process of building new networks with the help of government funding as well as private parties. The successful bidder will set up and maintain the transmission lines that will criss-cross Maharashtra, Gujarat and Madhya Pradesh. PGCIL will set up sub-stations.

KEC International is the largest power transmission, engineering, procurement and construction companies in the world, with a presence in more than fifteen countries. It is a market leader in India.

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