India's KEC International posts Q1 profit beat on strong demand

ABB India

03/08/2023 14:47

BENGALURU, Aug 3 (Reuters) - Engineering and construction company KEC International
 KECL.NS  posted a bigger-than-expected rise in first-quarter profit on Thursday boosted by strong
infrastructure demand.
    Consolidated profit for RPG Group's flagship company rose 36.5% to 423.3 million rupees ($5.11
million), while revenue rose 27.9% year-on-year to 42.44 billion rupees. 
    Analysts, on average, expected a profit of 332 million rupees, according to Refinitiv IBES
data.
    For further highlights, click  urn:newsml:reuters.com:*:nFWN39K1G5

KEY CONTEXT
    With less than a year to go for India's general elections, there has been an increase in
government spending on infrastructure. KEC International operates in the power transmission &
distribution, civil and railways sectors among others. 
    Rival Cummins India  CUMM.NS  reported an almost 79% increase in profit, led by the strong
sales in engines segment while Thermax  THMX.NS  posted a smaller-than-expected 1.7% rise in
first-quarter profit. ABB  ABB.NS  and Siemens  SIEM.NS  are yet to report results.
    
    
PEER COMPARISON
        
                             Valuation     Estimates (next 12   Analysts' sentiment           
                             (next 12           months)                                       
                             months)                                                          
                RIC        PE     EV/EBI  Revenue    Profit     Mean     # of      Stock to   Div
                                  TDA     growth     growth     rating*  analysts  price      yield
                                                                                   target**   (%)
 KEC             KECL.NS   23.40   11.80    14.95     127.61    Buy            20    1.15      0.47
 International                                                                                
 Ltd                                                                                          
 ABB India Ltd   ABB.NS    81.91   62.39    20.87      29.44    Hold           21    1.17      0.12
 Cummins India   CUMM.NS   41.13   37.09    13.81      4.90     Buy            11    1.15      1.32
 Ltd                                                                                          
 Thermax         THMX.NS   47.33   31.91    14.33      29.08    Hold           22    1.13      0.38
 Limited                                                                                      
 
    
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong
Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the
stock is trading above the PT
    
APRIL-JUNE STOCK PERFORMANCE OF KEC INTERNATIONAL VS PEERS
       
    
    
    -- All data from Refinitiv
    -- $1 = 82.7700 Indian rupees
    

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KEC International shares vs Peers    https://tmsnrt.rs/43SeHsW
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 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))