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KEC International


KEC is an EPC (Engineering, Procurement, and Construction) major, part of the RPG Group.

The company operates in the power transmission, power systems, cables, railways, telecom, and water segments.  It executes infrastructure development on a turnkey basis in 45 countries and is also one of the “Top 5 Engineering Employers of Choice”

The company reported consistent growth in revenues and operating profits over the last five years – reporting over 400cr of operating profits on revenues of about 4,000cr.  However, it operated with an uncomfortably high net debt position of about 1,600cr.

The business is exposed to rises in steel, aluminium, copper and zinc costs alongside intense domestic competition.  It is vulnerable to global economic slowdowns and is also specifically vulnerable to Middle East unrest (contributing 12% of revenues).  It is dependent on government policies on land acquisitions, forest clearances etc.  It also faces risks of manpower shortages, which delays project execution. 

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