KEI Industries Announces Q2 FY22 Results: PAT Rises 35% YoY
KEI Industries Ltd., one of the leading manufactures of wires and cables in India, has announced its financial results for quarter ended 30th September 2021.
Standalone Financial Figures of Q2 FY22 v/s Q2 FY21 v/s Q1 FY22
KEI Industries revenue from operations rose by 30.5% to ₹ 1,353.43 Cr in Q2 FY22 as against ₹ 1,036.94 Cr in the corresponding quarter of the previous year, and has increased by 33% from ₹ 1017.56 Cr of the previous quarter of FY22.
Net profit of KEI Industries rose by 35% to ₹ 91.98 Cr in the Q2 FY22 against ₹ 68.22 Cr during Q2 FY21, and it has increased 37% from ₹ 167.11 Cr of the previous quarter of FY22.
Segment Wise Financial Results
Cables Business: The revenue from total wire and cable business of KEI has increased by 37% to ₹ 1,211.2 Cr in Q2 FY22 as compared to ₹ 884.4 Cr in Q1 FY22.
Stainless Steel Wire Business: The sales has has increased by 8.3% to ₹ 51.7 Cr in Q2 FY22 as compared to ₹ 47.7 Cr in Q1 FY22.
EPC Projects Business: The sales through EPC have increased by 100 % to ₹ 275.3 Cr in Q2 FY22 as compared to ₹ 137.8 Cr in Q1 FY22.
KEI Management on Q2 FY22 Performance and Future Outlook
Mr. Anil Gupta, CMD, KEI Industries expressed in Q2 FY22 Earnings Conference Call that “EBITDA/net sale margin is 11% as against 11.74% in the same period previous year. EBITDA margin declined mainly because of some expenses normalized at pre-COVID level and sharp fluctuations in the input costs”.
He also mentioned that the current pending order position is overall ₹ 3,296 crores out of which ₹ 1,077 crores is EPC orders. Out of this ₹ 663 crores worth are export EPC orders which are World Bank and ADB funded projects in Nepal and Gambia in Africa.
The company’s credit rating from ICRA, CARE and India Rating is AA- for Long-Term Bank Facilities and A1+ for Short-Term Bank Facilities. Commenting on the future outlook, Mr. Anil Gupta said “Our strategy is to increase continuously retail sales and downsizing EPC business is working well and in future within 2 years’ time, our retail sale will reach at 50% of the total sales of the company with annual growth of 30 to 35% per annum in retail business”.
More Insight of KEI Industries
Debtor Days of KEI Industries has risen by 16% to 118 days for year ended March 2021 from 102 of FY 19-20. These are the average number of days required for a company to receive payments from its customers.
Inventory Days remained constant at 103 days for both FY 20 as well as FY 21. Inventory Days indicates the average time in days that a company takes to turn its inventory.
Days Payable of KEI Industries have increased to 56 days in FY 21 from 48 days in FY 20. These indicate the average time (in days) that a company takes to pay its bills and invoices.
About KEI Industries Ltd.: KEI Industries Limited is engaged in the business of Manufacturing and Marketing Power Cables-Extra High Voltage (EHV), High Tension and Low Tension, Control and Instrumentation Cables, Specialty Cables, Rubber Cables, Flexible And House Wires, Submersible Cables, PVC/Poly Wrapped Winding Wires and, Stainless Steel Wires. KEI has its manufacturing units in Bhiwadi, Chopanki, Pathredi and Silvassa.