Record orders boost KEC Q3 net
Buoyed by a growing order book, RPG Group's engineering, procurement and construction arm KEC International Ltd on Tuesday reported a 39% year-on-year jump in net profit at Rs 81 crore during the October-December quarter. Shrenik Avlani reports.business Updated: Jan 31, 2012 21:29 IST
Buoyed by a growing order book, RPG Group's engineering, procurement and construction arm KEC International Ltd on Tuesday reported a 39% year-on-year jump in net profit at Rs 81 crore during the October-December quarter.
The company received record quarterly orders worth Rs 2,500 crore during the quarter.
Revenues were up 36.3% at Rs 1,459 crore during the quarter against Rs 1,071 crore in the year-ago period.
The company's water business contributed Rs 300 cr in the six months since it was set up last year. It's India business, which accounted for more than 60% of the company's revenues two years ago, today accounts for about 43%.
"Our international business has grown much faster than India business," said Ramesh Chandak, managing director and CEO, KEC International.
"Despite the crisis in the West, we have got orders from across geographies, especially from Brazil and Canada. Even the US is spending on infrastructure. However, the margin is under pressure and likely to remain around 8-9% this year."
The company, which was facing manpower issues on the ground level last year, said the situation was stable now. "Due to the crisis in the West there are fewer opportunities for workers these days. The pressure on sourcing manpower has reduced," he said.