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KEC International, the flagship firm of RPG Group, today reported a consolidated net loss of Rs 13.93 crore for the fourth quarter ended March 31, 2013, largely due to subdued sales and hefty increase in its interest outgo.
The engineering, procurement and construction (EPC) major had reported a net profit of Rs 74.42 crore during the corresponding quarter of 2011-12.
Net sales of the company increased marginally by 4 per cent to Rs 2,104.67 crore during the fourth quarter vis-a-vis Rs 2,024.18 crore of the Q4 of FY’12, it said in a filing to the BSE.
The company’s expenditure, at Rs 2,076.67 crore, amounted to 98.67 per cent of its net sales in the last quarter. Besides, the interest outgo was up nearly 39 per cent at Rs 56.98 crore.
For the financial year ended March, 2013, company’s net profit declined by nearly 69 per cent to Rs 65.04 crore vis-a-vis Rs 209.3 crore. However, its net sales increased by 20.19 per cent during the fiscal at Rs 6,854.19 crore.
In a separate statement, KEC International’s Managing Director and CEO Ramesh Chandak said: “For the FY’13, our topline growth was strong. However, our profits were impacted due to current challenging economic environment and our entry into new businesses”.
The company was impacted hard during the last fiscal as its costs and interest outgo increased significantly. While expenditure amounted to over 97 per cent of net sales in the fiscal at Rs 6,654.17 crore, finance cost went up by 21.70 per cent at Rs 194.40 crore.
However, KEC International said that it has a robust order book, which currently stands at Rs 9,470 crore.
The company Board has also recommended a dividend of Rs 0.55 per share for its shareholders.
KEC International is a global EPC major, having presence in over 45 countries across the continents. Besides the power transmission — its largest business vertical, the company is also present across power systems, cables, railways, telecom and water.
Following the results, shares of the company fell 8.02 per cent on the BSE today to close at Rs 48.75 apiece.
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