MUMBAI, Feb 5: With international oil and gas and commodity prices witnessing a decline, engineering firm KEC International is expecting its overseas business to pick and is eyeing nearly 45 per cent of its revenues from this, in fiscal 2017-18.
KEC and its US subsidiary SAE Towers execute turnkey transmission projects across 61 countries.
“We have a wide reach in terms of our international presence. Due to higher oil and commodity prices, there was a slow down in order inflows. But now that we are seeing a decline in these prices, we believe the international business to contribute to nearly 45 per cent to our total revenues,” KEC managing director and CEO Vimal Kejriwal told PTI here.
The company has nearly Rs 2,400 crore worth of international orders where it is in L1 position and expects these to contribute in revenues in FY18 along with new orders coming from the Middle East and African countries.
For FY2016-17, the company believes the international business may contribute nearly 40 per cent.
During the December 31, 2016 quarter, the company had secured orders worth Rs 1,218 crore from international business and Rs 115 crore in India.
Kejriwal further said the company expects a 10-15 per cent growth in revenues for FY18 as against a 10 per cent projected by it earlier.
“We witnessed a degrowth of 6 per cent in revenues during the third quarter of the current fiscal which was impacted by many events including demonetisation, delay in execution and tendering of new contracts. We have almost Rs 2,000 crore worth of contracts in India where we are at L1 position which we expect to be translated in orders in the coming fiscal,” he said.
He further said with execution pace improving in areas like Jammu and Kashmir where one of its projects is under implementation, the company will be able to achieve higher sales during the fiscal.
Currently, the company has an order book of Rs 11,000 crore. (PTI)