KEC International on Friday reported about 3 percent decline in consolidated net profit at Rs 192.88 crore for the quarter ended March 31, 2020.
The global engineering, procurement and construction (EPC) major had clocked a profit of Rs 198.76 crore in January-March 2018-19, it said in a filing to BSE.
Revenue during the quarter declined to Rs 3,673.73 crore as against Rs 3,845.51 crore in the year-ago period.
Total expenses dipped slightly to Rs 3,404.68 crore in the fourth quarter of the last fiscal as against Rs 3,552.73 crore in the year-ago period.
The company said the lockdown has had a very marginal impact on its revenues and profits in 2019-20, and the same will accrue in this financial year considering that these are project-based revenues.
The group through the lockdown period and even subsequently has been able to maintain adequate control of its assets and there have been no significant changes to its control environment during the period, it added.
The company said the operations of the group were impacted due to the shutdown of factories, project sites and offices following the lockdown in India and in some international locations due to COVID-19. India is under lockdown since March 25.
The group has subsequently commenced its operations in a phased manner, starting from April 12, in line with the directives from the relevant government authorities.
The management and the board have evaluated the impact of the pandemic on its business operations under various scenarios, it said.
The group currently has a strong order book and L-I position in excess of Rs 24,000 crore, leading to a clear visibility of revenue over the next 18-24 months.
"Collections from customers have been normal during the lockdown period and in fact better than normal in certain cases enabling the group to meet all its liabilities (including employee payables) in a timely manner and without availing any moratorium as announced by the Reserve Bank of India," it said in the filing.
The group has on April 20, 2020 (the due date) repaid NCDs aggregating to Rs 207 crore.
The group bas adequate unutilized fund-based credit facilities available, to take care of any urgent requirement of funds, the company said.
"Based on the above assessment, the group strongly believes that there is no material impact on the financial results or positions of the group due to the pandemic. Further, the timely steps announced by the Government of India, allowing extension of contract delivery period up to six months, additional liquidity...and additional investment in infrastructure projects, will enable the group to further consolidate its position," it said.
However, the group will continue to monitor any material changes to future economic conditions, as and when they arise.
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