KEC International bags Rs 1,025-crore new orders

Source: Economic Times, 14 January 2022

Engineering, procurement and construction major KEC International on Friday said it has bagged new orders worth Rs 1,025 crore across its various businesses. The company’s transmission and distribution business has secured orders for projects in India and the Middle East, the RPG Group firm said in a filing to the BSE.

Its civil business has also secured an order for infrastructure works in the metals and mining segment in India, it said.

The other businesses from which the company has bagged orders include oil and gas pipelines and smart infrastructure.

KEC International MD and CEO Vimal Kejriwal said, “Our order book continues to grow against the backdrop of orders secured across all our business verticals.”

KEC International bags orders worth Rs 1,157 crore across businesses

Source: Economic Times, 22 September 2021

Engineering, procurement and construction major KEC International Ltd on Tuesday said it has bagged orders worth Rs 1,157 crore across its various businesses. In the transmission and distribution segment, the RPG Group company bagged orders worth Rs 663 crore for projects in the Middle East, Africa, and the Americas, KEC International said in a filing to the BSE.

In the railways segment, it has orders of Rs 220 crore for 2 x 25 kilovolts (kV) overhead electrification and associated works for speed up-gradation in India.

In the civil segment, “the business has secured an order of Rs 173 crore for construction of a new airport terminal building and associated works in southern India.”

In the cables business, it has secured orders of Rs 101 crore for various types of cables in India and overseas.

“We are pleased with the new orders secured across our business verticals. The orders in T&D (transmission and distribution), especially in the Middle East region will enable us to further strengthen our presence in the international markets.

“Our Railway order book continues to grow in emerging/new areas with orders in the Semi High-Speed Rail under mission ‘Raftaar’,” KEC International Managing Director and CEO Vimal Kejriwal said.

The company is particularly enthused with its first order in the airports vertical which marks its entry in the growing public spaces segment, Kejriwal added.

Real Estate trends: Housing supply and demand set to grow this festival season

Source: Financial Express, 13 September 2021

The upcoming festive season is expected to spoil customers for choice in the residential real estate sector. After witnessing tepid launches momentum for several years and last year’s season getting hit by the pandemic, 2021will see some big projects getting launched across the country.

As per Anarock Research, current trends suggest that there will be at least 30-40% growth in both new launches and sales in the ongoing quarter (July-September) as against the preceding one. As many as 24,600 units were sold across the top seven cities in Q2 2021, while 36,250 units were launched in the same quarter.

In Mumbai Metropolitan Region (MMR) alone, consultants expect 2 million sq ft of launches in the coming festive months with 25-30 big launches planned, having inventory worth Rs 3,750-odd crore. After a long hiatus, the good news is that branded developers are entering the market. Prestige Estates Projects is launching three projects in Mumbai’s Byculla, Mulund and Chembur neighbourhoods, another south-based developer Puravankara plans to launch two, while Oberoi Realty is understood to be launching a project in Thane. Sunteck Realty has also lined up launches in the existing Oshiwara District Centre and Naigaon Projects.

Ritesh Mehta, senior director & head (residential services & developer initiatives), western India, JLL told FE that the launch pipeline is particularly looking strong in MMR because developers have taken advantage of government’s concession scheme under which if developers gave upfront amount for all the approvals needed for their projects, they got a 50% concession on the same.

“Last year, developers were selling at a cut-throat price and were undercutting their inventory. So, the money that has got accumulated as a result of higher sales, they have incurred on acquiring approvals for the new projects. This means we will see lot of launches this year,” he said. Also, since all the approvals have been acquired, from the customers’ perspective, the major thing is they would be relieved in terms of the certainty of the projects. Approval costs typically form 20-25% of the project cost, which came down to 12-13% as a result of the concessions.

Most of the launches are expected to be in the ticket size of Rs 1 crore to around Rs 2 crore, with preference for larger houses continuing and developers offering an extra half or one room catering to the new requirement for study or work purposes.

Anuj Puri, chairman, Anarock Group said, “With Covid-19 cases relatively under better control for now and the vaccination drive gaining more acceptable saturation, we anticipate housing demand and supply to see an uptick in the upcoming festive season. While some developers have already increased property prices on account of rising input costs and improved sales traction, many continue to offer deals and discounts”.

However, the element of direct price reduction has disappeared now; and offers and indirect discount being offered are to the tune of 1-3% of property value. Vivek Rathi, director (research) Knight Frank India said, “Most of the discounts now are in form of an extended stamp duty relief to assuage concerns of consumers who have missed the bus on the limited period stamp duty cut in markets like Mumbai and Pune”.

In a reversing trend, the negotiation power of buyers are now diminishing and the market is gradually turning to a sellers market. The discounts and freebies offered by developers will be dismal because they have incurred lot of money in acquiring approvals and land. “Both costs are already incurred and have covered the cash flows and thresholds of last year, so if Rs 10 was the quoted price and they were closing at Rs 7 last year, they are closing at `9 and nothing below that,” Mehta explained. However, the prices have not changed much yet.

Kamal Khetan, chairman and managing director, Sunteck Realty said that while the company is not announcing any discounts or price cuts, it would be launching phase-wise projects in the coming months.

Similarly, in NCR, developers are gearing for a good festive season. Saransh Trehan, director, Trehan Luxury Floors said, “We are launching 300 luxury independent floors at Sector 67 and few other locations in the heart of IT City Gurugram. We are also offering flexi-payment plan for prospective homebuyers. We expect a good response from customers. We are targeting to sell entire 300 units in the next few months riding on pent up and festive demand coupled with very low interest rate on home loan”.

(With inputs from Rishi Ranjan Kala in Delhi)

Cement prices may move up again

MUMBAI: Cement prices could rise again this month-end, the second hike on the trot in less than a month, presaging many more this year as a dearth of key inputs and transportation woes threaten to negate the odds of an oversupply in the next quarter.

Cement prices, which rose by Rs 10 a bag early this month after the government hiked excise duty to 10% from 8% in the budget, is set to see a similar hike as producers are planning to pass on the impact of the recent diesel price hike to consumers, dealers say.

Currently, a 50 kg bag is sold at Rs 275 in Mumbai, Rs 265 in Kolkata, Rs 245 in Chennai and Rs 190 in Hyderabad.
The 240 million tonne domestic cement industry, which transports nearly 60% of its dispatches by road and 40% by rail, pays as much as 20% of its operating costs on transportation. So, typically any hike in transportation costs alters cement prices.

As for coal, unable to meet its voracious demand, the industry — the world’s second-biggest after China — is forced to buy at least 50% of its needs from overseas markets at higher rates. To make matters worse, the availability of power is nearly 25% lower than demand.

According to leading producers of the commodity, the shortage of inputs and wagons will put incessant pressure on prices through the year even if higher allocation towards infrastructure development spawns demand for construction materials, including cement.

“The rail wagons and power shortage are the real hurdles, which, if not resolved, will force cement makers to raise prices,” says Shiva Cement managing director Rajendra Prasad Gupta.

Sanghi Industries director Alok Sanghi says his company is analysing the possibility of a price rise.

Analysts feel cement prices may not come down if issues related to the supply of raw materials are not resolved.

“The dual factors eat into the bottom line of the companies,” says an analyst, requesting anonymity, adding that as a result, consumers will be unable to enjoy the benefits of an oversupply situation expected in the next quarter.

Still, experts are not sure if cement makers will be able to pass on every rise in transportation cost to consumers.

Source : Business Standard.  16/03/10