KEC International hopes to multiply its civil contracts revenue to Rs4,000 crore

5 Jul 2022 , 09:40 AM

The civil contracts sector is where KEC International, a worldwide infrastructure engineering, procurement, and construction company, is placing its bets in an effort to more than double its revenue this fiscal year.

The entire income of the RPG Group company climbed by 5% to Rs13,700 crore in the most recent fiscal year that concluded on March 31, driven by expansion in the civil, railroads, and cables industries. The civil business contributed Rs1,900 crore to the company’s revenue.

With orders totalling more than Rs8,000 crore for the civil business, KEC has 290 projects in India and abroad that are either already in the works or in a queue. More than Rs29,000 crores worth of orders are currently on file with the company.

Power transmission and distribution, railways, civil, urban infrastructure, solar, smart infrastructure, oil and gas pipelines, and cables are all areas where KEC is active. The company anticipates that its civil business, which is broken down into four verticals: urban infrastructure and water; industrial and hydrocarbons; residential and public spaces; and defence and data centres, will account for the majority of its growth.

According to ICICI Securities’ report on KEC on Monday, “as part of its diversification strategy, non-T&D (transmission and distribution) business currently provides 50% of revenue compared to 13% in FY16, led by growth in railway and civil.” The company’s expansion is anticipated to be driven by the civil segment, it was said.

Government spending has been driving the sector’s expansion, according to the business. Smart city initiatives, as well as water and pipeline construction projects, are prioritized. After receiving orders from the government’s Jal Jeevan mission, which includes building water pipelines and treatment facilities among other things, the business joined the water pipeline market last year.