KEC International is confident of achieving a 15 percent annual growth rate for the next two-three years backed by a robust order book.
And this projection is a conservative one, according to Vimal Kejriwal, managing director, and chief executive officer of the engineering, procurement and construction major. Currently, it has an order book of Rs 24,000 crore, which includes projects from Brazil and the Indian Railways.
“We can always do better and we will try for it but when we are giving a guidance, we will stick to a conservative 15 percent,” he told BloombergQuint in an interview.
Here are the other key highlights from the conversation:
- Around 52 percent of the order book is international while the remaining 48 percent is domestic.
- Have received orders worth Rs 1,000 crore from Power Grid in the last two years.
- Have received orders worth Rs 600 crore from Power Grid this year so far and are also the lowest bidders in other order worth Rs 700 crore.
- Over 36,000 km of tracks are likely to be electrified
- See opportunity worth Rs 30,000 crore from the railways
- India’s transmission capital expenditure has not picked-up
- T&D capital expenditure has picked up In Bangladesh, Nepal and the Middle-East
- Solar business has been on the back burner due to policy flip-flops
- The Indian solar industry is currently in a mess
- Focused more on the Middle-East and African market
- Solar business may clock revenues of Rs 300-400 crore this year
- Debt reduced substantially the fourth quarter
- Debt rose in the first quarter of the financial year due to lack of liquidity
- We are not comfortable with the current debt levels and are looking at reduction plans.
- We forayed into civil construction last year and launched a vertical for smart infrastructure.
- Confident of winning orders for the smart infrastructure business
- Look to improve margins by 50 basis points this year