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KEI Industries FY-24 Revenue Up 17%, Major Expansions Planned

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KEI Industries Limited [NSE: KEI, BOM: 517569], an Indian wire and cable company, has announced its financial results for the quarter and financial year ended 31st March 2024.

Moreover, during the company’s earnings call for its FY-24 financial results, Mr. Anil Gupta, Chairman and Managing Director (CMD) of KEI mentioned major greenfield and brownfield expansion plans.

KEI’s Standalone Financial Figures: Q4 FY-24 & FY-24

KEI Revenue Comparison: Q3 FY24 vs Q4 FY24
KEI PAT Comparison: Q3 FY24 vs Q4 FY24

KEI Industries clocked a standalone revenue of Rs. 2,319.28 crore from operations during Q4 of FY-24. The company’s Profit After Tax (PAT) during this period stood at Rs. 168.79 crore.

Considering the entire financial year 2023-24, KEI reported a standalone revenue of Rs. 8,104.08 crore and a PAT of Rs. 581.05 crore.

The company’s Earnings Per Share (EPS) for Q4 of FY-24 stood at Rs. 18.70 and at Rs. 64.41 for entire fiscal year 2023-24.

KEI’s Consolidated Financial Numbers: Q4 FY-24 & FY-24

YoY Comparison of KEI’s Financials: Q4 FY-24 vs. Q4 FY-23 & FY-24 vs. FY-23

Comparison of KEI Revenue: Q4 FY23 vs Q4 FY24 vs FY23 vs FY24

KEI reported a consolidated revenue of Rs. 2,319.28 crore during Q4 of FY-24, marking an Year-over-Year (YoY) increase of 18.76% from Rs. 1,952.93 crore recorded during Q4 of FY-23. Correspondingly, PAT during Q4 of FY-24 increased by 22% to Rs. 168.48 crore from Rs. 138.10 crore during Q4 of FY-23.

Comparison of KEI PAT: Q4 FY23 vs Q4 FY24 vs FY23 vs FY24

Considering the full financial year, In FY-24, KEI recorded a top line of Rs. 8,104.08 crore, thus exhibiting an increase of 17.31% from Rs. 6,908.17 crore in FY-23. Further, the company’s FY-24 PAT of Rs. 580.73 crore was 21.66% higher than its FY-23 PAT of Rs. 477.34 crore.

Moreover, the company’s Q4 FY-24 EPS stood at Rs. 18.67. For the entire 2023-24 fiscal, KEI’s EPS was reported as Rs. 64.37.

QoQ Comparison of KEI Industries’ Financials: Q3 FY-24 vs. Q4 FY-24

KEI’s revenue from operations saw an increase of 12.62% from Rs. 2,059.37 crore reported in Q3 of FY-24. Further, the company’s PAT also jumped by 11.82% from Rs. 150.67 crore during third quarter of FY-24.

KEI Industries’ Segment-Wise Revenue Comparison

KEI Segment-wise Financials: Q4 FY23 vs Q4 FY24 vs FY23 vs FY24

Cables & Wires: The company earned Rs. 2,069.06 crore as revenue during Q4 of FY-24 from its Cables & Wires segment against Rs. 1,754.31 crore clocked during Q4 of FY-23. This represents an increase of 17.94% on a YoY basis.

During entire FY-24, this segment accounted for 83.60% of the company’s gross revenue*. KEI Industries’ revenue from its Cables & Wires business was Rs. 7,320.70 crore during FY-24, reflecting a 17.10% increase from its Rs. 6,251.47 crore revenue for FY-23.

*Gross revenue of a company represents the total of segmental revenues before subtracting inter-segmental revenue.

The company’s earnings presentation for Q4 of FY-24 stated that the company generated Rs. 2,236 crore from domestic B2B sales of wires and cables during FY-24. B2C sales of wires and cables accounted for 46.52% of overall sale in FY24.

Stainless Steel Wire: KEI’s revenue from this segment decreased YoY by 11.21% to Rs. 57.20 crore in Q4 of FY-24 from Rs. 64.42 crore logged during Q4 of FY-23.

Over the entire FY-24, revenue from this segment fell by 12.92% to Rs. 220.64 crore against Rs. 253.38 crore during FY-23.

EPC Projects: KEI Industries reported a revenue of Rs. 340.46 crore from its EPC Projects segment during Q4 of FY-24. This reflects a YoY increase of 52.56% from the company’s Rs. 223.17 crore revenue clocked for Q4 of FY-23.

Moreover, for entire FY-24, the company recorded Rs. 1,215.11 crore as revenue from this segment, showing a major increase of 72.11% from Rs. 706.02 crore during FY-23.

Insights of KEI for its FY-24 Financial Performance

In its earnings presentation for FY-24 financial results, KEI stated that the company generated Rs. 3,043 crore from the sales of LT cables and Rs. 2,347 crore from sales of House Wires (HW) / Winding Wires (WW) during FY-24. Further, sale of HT cables contributed Rs. 1,335 crore to the company’s revenue. The company generated remaining Rs. 1,439 crore by the sales of SS wire, EHV cables and the operations in the company’s EPC business.

KEI Industries’ CAPEX Plans and Growth Projections

Brownfield Expansion at Pathredi and Chinchpada Plants

With reference to CapEx, Mr. Anil Gupta said that the company plans to invest approximately Rs. 125 crore to expand the production capacity of Low Tension (LT) power cables at its Pathredi plant. Out of the total amount, Rs. 74 crore has already been invested, and the remaining will be spent within the next 3 to 4 months.

He further mentioned that the company is expanding its manufacturing capacity for wires and cables at Chinchpada plant. In next 1 to 2 months, KEI will Invest about Rs. 65 crore for this expansion.

Mr. Gupta added that this brownfield CapEx will facilitate a growth of 16% to 17% in FY-25 and FY-26.

KEI’s Major Greenfield Expansion in Gujarat

KEI Industries is in the process of setting up a greenfield manufacturing unit in Sanand, Gujarat.
During the company’s earnings call, Mr. Rajeev Gupta, CFO of KEI Industries, clarified, “Current year, [at Sanand] we will be spending around INR 900 crores to INR 1,000 [crore]”. He explained that in FY-26, an additional Rs. 500 crore to Rs. 600 crore will be invested in the Sanad facility.
The Sanand plant is expected to start commercial production by Q1 of FY-26. KEI targets expanding its LT, HT and EHV cable manufacturing capacity through this expansion.

About KEI Industries Limited: KEI Industries was founded in 1968 as a partnership firm. It was converted into a Limited company in 1992. The company has manufacturing facilities in Bhiwadi, Chopanki & Pathredi in Rajasthan and Silvassa in Dadra & Nagar Haveli. KEI is primarily a cable and wire company, dealing in Low Tension (LT) cables, High Tension (HT) and Extra High Voltage (EHV), control and instrumentation cables, specialty cables, elastomeric / rubber cables, submersible cables, flexible & house wires.