KEC expects slowdown in order inflows over next 2 months due to elections

Vimal Kejriwal, MD and CEO of KEC International, said the company had a good year on infra side on ordering, basically in transmission and distribution (T&D), railways and civil areas.

“Of late with the election mood coming in, we are now seeing a slowdown where tenders are not coming in or we do not expect decisions in the next 2 months, so there would be a slowdown in India piece going forward,” he said.

The slowdown due to general elections will not impact the company's overall order inflow, added Kejriwal. "In fact for next year we have been talking about 15-20 percent growth as against 12-12.5 to 15 percent for this year because we already have large orderbook.”

Nirmal Bang Institutional Equities has come out with a report with its top picks from the engineering and construction space. KEC International is one of those companies. Kejriwal gives growth outlook of the company:

-Expect revenue growth from international orders to shoot up in FY20.

- Had revised FY19 revenue guidance lower due to issues in international orders

- Have received some payments from the Saudi order

- Working capital days will improve in Q4

- Expect interest costs to go down in Q4 QoQ

- Borrowings to decline to Rs 2,500 crore by March 2019

- Net working capital days to be around 125-130 days by end of year

- Expect railway revenue to be Rs 1,800-1,900 crore in FY19

- Expect 20% growth in railways revenue in FY20