KEC's transmission&distribution orders to grow to 70 % of FY20
VIKAS SRIVASTAVA Mumbai, February 15
KEC INTERNATIONAL'S TRANSMISSION and distribution (T&D) orders from global business is set to grow to 70 % of the T&D order book infy20 from 50 % in FY19 on the back of strong order inflow from SAARC, Africa and West Asian countries even as domestic orders de-grew by 20 % in Fyio.
T&D business contributed around 73 % to the total order book of the company in Q3FY19, which includes other businesses such as railways, civil, solar and smart infrastructure division.
Vimal Kejriwal, managing director and CEO of KEC international, told Financial Express that KEC's T&D order book will grow to 70 % of the total T&D order book in FY20 with SAARC countries contributing a majority share. At the end of Q3FY19 this share was 519 % and is likely to close at 50 % in FY19 as the overall domestic order from the private sector has de-grown.
Bangladesh has emerged as one of the largest markets in the T&D space with the company receiving around 2,200 crore worth of orders in the last six months alone. The $ 5-billion line-of-credit from the Indian government and electricity flow between the two countries is the added advantage for the companies looking at opportunities in Bangladesh ,'' Kejriwal said.
The company is also bidding for some large T&D projects in Nepal ,
Bhutan, Afghanistan and West Asia. West African countries such as Senegal, Nigeria, Ghana and Liberia will be the next big market to look out for in the coming quarters, company's MD&CEO
Vimal Kejriwal added
The company is also bidding for some large T&D projects in Nepal, Bhutan, Afghanistan and MiddleEast. West African countries such as Senegal, Nigeria, Ghana, and Liberia will be the next big market to look out for in the coming quarters, Kejriwal added.
Slowdown in domestic private T&D orders has reflected in increased share of international orders for KEC. year-to-date the share of international orders were 529 % of the order inflows as against 37 % a year ago, and 51 % of the order book as against 37 % a year ago.
The company further plans to take its railway business to international arena by bidding for projects in SAARC, Far East and African countries. Wewant to replicate our growth in railways in India in other potential markets in SAARC and Africa. We already bid for few projects in Bangladesh and Malaysia and hope to win few upcoming projects in other emerging markets ,'' Kejriwal said.
KEC's railway business revenue in FY19 will grow to Rs 1,800 crore from 800 crore in FY18 on the back of strong orders from Indian Railways which has intensified doubling and tripling of tracks, electrification of lines, and signalling operations over the last couple of years.
We will complete around 2,000 route kilometres of electrification in FY19, which is one-third of government target of 6000 km. We further expect our railway orders to grow by 20 % year-on-year in FY20 from 34,500 crore in FY19 ,'' Kejriwal said. Indian government plans to save around 12,000 crore in fuel cost through electrification of 30,000 route km in the next three years.
KEC's net debt as of December 31 stood at Rs 3,100 crore, which the company plans to reduce to Rs 2,500 crore by March end by reducing the working capital requirement, receipt of payments and retention money from Saudi Arabia, and sale of sika r-bikaner transmission project to Adani Transmission.