KEC International wins power transmission orders

Friday, Aug 06, 2010

KEC International Ltd. (KEC), a global leader in the power transmission EPC business and an RPG group company, has won orders in the Substation & Transmission space to the tune of Rs. 250 crore. The Company entered the elite club of 400 kV substation segment by securing its first ever 400 kV substation order from the Power Grid Corporation of India (PGCIL} on a turnkey basis.

The scope of work includes supply, erection, testing and commissioning of two greenfield substations and bay extensions for another two substations in Orissa. Total order value is Rs. 92 crore. The Company also secured its first ever order for 220 kV substation on turnkey basis in SAARC region outside India. The order is received from the Bhutan Power Corporation (BPC). Total order value is Rs. 62 crore.

Allthese orders put together, the company is currently executing a total 19 substation projects. The company now completes prequalification base for all the types of substations {up to 400 kV).

In the Domestic Transmission segment, the company has secured an order for turnkey construction of 400 kV overhead transmission line in Madhya Pradesh (India). Order is received from Bina Power Supply Company Limited (BPSCL), a subsidiary of Jaypee Group's Jaiprakash Power Venture ltd (JPVL). Total value of order is Rs 51 crore. This project will enable KEC to widen its footprint in private sector, thereby diversifying its customer base.

In the International Transmission Segment, the Company has secured an order for turnkey construction of overhead transmission line in UAE. This project has been secured from a new customer, Abu Dhabi Distribution Company (ADDC). With this, the company has further diversified its customer base. This is a fast track order which will have to be executed within 3 months. This project was awarded based on KEC's reputation to deliver on time. Total value of order is Rs. 45 crore. With all these new orders, the current order book stands at Rs. 5,900 crore.

"We have established ourselves as a strong player in the substation space in India and abroad. The order wins from PGCIL & BPC is another step towards consolidating ourselves in the Substation segment. We now provide complete solutions for the entire range of T&D business. Further, we are happy to diversify our client base in India and UAE" said Mr. Ramesh Chandak, MD & CEO, KEC International Ltd.

The stock was trading at Rs.493.90, up by Rs.5.70 or 1.17%. The stock hit an intraday high of Rs.499 and low of Rs.487.

The total traded quantity was 15220 compared to 2 week average of 17338.

Source: Equity Bulls