Despite a decline in revenues, engineering firm KEC International today reported a nearly two fold increase in net profit for the quarter ended December 31, 2016 at Rs 62.6 crore mainly on the back of reduction in total expenses as well as finance and interest costs.
The company had reported a net profit of Rs 26.19 crore in the corresponding quarter last fiscal.
Its total income for the October-December period declined 6.95 per cent to Rs 1,964.62 crore as compared to Rs 2,101.31 crore a year-ago.
“We continue to consistently outperform on the profitability front despite the challenging economic scenario in some of our markets over the last few months. The decline in revenues is a reflection of demonetisation and delay in project awards, among others,” KEC International Managing Director and CEO Vimal Kejriwal said.
During the quarter, the company secured new orders of Rs 1866 crore across its various businesses, across domestic and international markets.
In the transmission and distribution business, KEC secured orders of Rs 1,333 crore in Afghanistan, Zambia, Mozambique, Jordan and India and Rs 115 crore orders from PGCIL and Karnataka Power Transmission Corporation.
The railways business has secured orders of Rs 390 crore while it received Rs 143 crore worth contracts in the cable segment.
“The international business sentiment is clearly picking up as is evinced by an uptick in our International order intake and L1 positions. Further, we have successfully rebalanced our Middle East portfolio with the new order win in Jordan and earlier order win in Egypt,” he said.
Kejriwal further said the railways business continues to witness a rapid built-up on the back of consecutive large order wins thereby reaffirming our confidence in the Railways growth story.
“We have a strong order book position and robust L1 pipeline which gives us good visibility and confidence going ahead,” he added.
(This article has not been edited by DNA’s editorial team and is auto-generated from an agency feed.)