KEC International Announces Third Quarter Results

Online, February 2, 2011 (Newswire.com) - KEC International Ltd recently announced its results for thrird quarter of 2010-11. The results matched with the estimations made by Unicon Investment Solutions closely. Few of the result's highlights include the following:

• The company's consolidated revenue for the quarter stood at INR 10.7 bn as against INR 9.5 bn in the corresponding quarter last year, registering a growth of 13%.
• EBITDA was INR 1250 mn as against INR 970 mn in the corresponding quarter last year, registering an increase of 28%. EBITDA margin increased by 138 bps, YoY to 11.6%.
• PAT for the quarter was INR 580 mn, up 25% as compared to the corresponding quarter of the previous year. PAT margin increased by 53 bps on a YoY basis to 5.4%.

Outlook and Valuation by Unicon Investment Solutions
KEC International has delivered strong results backed by higher margins and a healthy order inflow. The firm expects its consolidated revenue to cross USD 1 billion this financial year, while FY12 would be better on healthy order inflows and added business verticals. According to Unicon, "We expect the company to post strong numbers in Q4FY11 as most of the projects are due during the quarter. SAE Towers was a pleasant surprise with high margins, however expect margins to moderate at 14-15% levels in the coming quarters. At CMP the stock trades at 8x its FY12 EPS estimates. Recommend Buy with a target price of INR 104 considering strong order book, diversified geographical presence and attractive valuations".
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