KEC International Ltd., a prominent player in infrastructure engineering, procurement, and construction, is setting its sights on achieving an order intake of Rs 25,000 crore for the current fiscal year. The company remains optimistic despite facing execution challenges.
On Wednesday, KEC International announced two new contracts valued at Rs 1,171 crore in the Middle East. Earlier in the week, the company secured another significant order worth Rs 1,079 crore. So far in fiscal 2025, KEC International has amassed orders nearing Rs 10,000 crore.
“We have already secured close to Rs 10,000 crore in orders this fiscal year and are leading in another Rs 7,500 crore worth of tenders. Our target remains an order intake of Rs 25,000 crore,” said Vimal Kejriwal, Managing Director and CEO.
Kejriwal acknowledged ongoing challenges with labor shortages and execution issues. “Labor shortages have impacted our civil and transmission and distribution businesses. There are still supply chain difficulties, particularly concerning pipes, transformers, and conductors, although the situation is improving,” he noted.
The company is also eyeing a substantial tender pipeline totaling Rs 1.5 lakh crore. This figure includes tenders already quoted but not yet opened, as well as those KEC plans to bid on in the upcoming months. The company has addressed some of these issues by expanding its capacity and establishing its own plant.
“In the past six weeks, we’ve added 3,000 to 4,000 workers, but we still face a 20% shortfall, which is a widespread issue in the industry. We had hoped that labor returning after elections would resolve this, but it has been challenging. Nevertheless, we are seeing a gradual improvement,” Kejriwal added.
The labor shortage has also affected financial results. However, Kejriwal expressed confidence that margins will improve in the coming quarters. “Our margin target for the year is 7.5%, meaning we expect significant margin improvements in Q3 and Q4, which are typically revenue-heavy periods,” he said.
KEC International is also focused on securing projects that offer better margins. “We are currently completing older projects with lower margins. As new projects commence, we anticipate an increase in margins,” Kejriwal concluded.
