Cable NewsLatest NewsSpotlight

KEI Industries Logs 15% YoY Growth in Q3 Revenue, Stock Gains 10% Post Results

KEI Industries logo

KEI Industries Limited, [NSE: KEI, BOM: 517569], an Indian Wire and Cable Company, has announced its financial results for Q3 of FY-24.

KEI Industries’ Standalone Q3 FY24 Financial Numbers

KEI Industries revenue from operations stood at Rs. 2,061.72 crore for Q3 of FY-24. Further, the company reported Rs. 150.67 crore as its Profit After Tax (PAT) for third quarter of FY-24.

Correspondingly, the company’s Earnings Per Share (EPS) were reported to be Rs. 16.70 during Q3 of 2023-24 financial year.

KEI Industries’ Q3 FY-24 Consolidated Financial Results

YoY Comparison of KEI Industries’ Financial Figures: Q3 FY-24 vs. Q3 FY-23

Comparison of KEI Financials: Q3 FY23 vs Q3 FY24 vs Q2 FY24

KEI Industries’ Q3 revenue from operations exhibited a Year-over-Year (YoY) increase of 15.55% to Rs. 2,061.72 crore in FY-24 from Rs. 1,784.32 crore which was recorded during FY-23.

The company’s PAT also exhibited an upward trend, jumping by 17.04% to Rs. 150.67 crore in Q3 of FY-24 from Rs. 128.73 crore logged during Q3 of FY-23.

Further, KEI’s EPS also increased to Rs. 16.70 during Q3 of FY-24 from Rs. 14.26 reported for Q2 of FY-24.

QoQ Comparison of KEI’s Financials: Q3 FY-24 vs. Q2 FY-24

On Quarter-over-Quarter basis, KEI’s revenue increased by 5.91% from Rs. 1,946.58 crore clocked during Q2 of FY-24.

Following suit, the company’s PAT increased by 7.46% from Rs. 140.21 crore earned during second quarter of FY-24.

KEI Industries Stock Gains 10% Post Q3 FY-24 Result Announcement

KEI Industries’ share price was up by 9.96% the day after the company announced its financials for Q3 of FY-24.

Further, volume of trades of company peaked at 13,52,000 trades one day after the company announced its financials, which is 3.79 times the number of trades a day earlier, which stood at 3,56,000.

KEI Industries’ Segment-Wise Financial Performance

KEI Segment-wise Financials: Q3 FY23 vs Q4 FY24

Cables & Wires: KEI’s Cables & Wires segment showed a revenue increase of 14.43% YoY, reaching Rs. 1,869.11 crore recorded during third quarter of FY-24, from Rs. 1,633.38 crore reported during Q3 of FY-23.

Stainless Steel Wire: Stainless Steel Wire segment of the company bought in a revenue of Rs. 46.46 crore in Q3 of FY-24. This reflects a decline of 16.65% YoY from Rs. 55.74 crore logged during third quarter of FY-23.

EPC Projects: The company’s revenue from its EPC Projects business stood at Rs. 376.91 crore in Q3 of FY-24 as compared to Rs. 223.40 crore. This shows a impressive YoY increase of 68.72%.

Insights of KEI’s Management on Q3 FY-24 Financial Performance

During the company’s earnings call for its Q3 FY-24 financial performance, Mr. Anil Gupta, Chairman and Managing Director of KEI Industries said, “Overall domestic institutional cable sale is 1,560 crore in nine months against 1,574 crore last year. Sales of extra high voltage cable is 402 crore against 237 crore last year. Export sales in 9 months is 840 crore against 530 crore last year. The growth is approximately 59%”.

KEI’s presentation on its Q3 FY-24 financials states that the company’s cable and wire sales in the quarter via dealers saw a 16.39% YoY growth, and that the network of the company’s dealers stands at 1,975 as on 31st December 2023. The company’s revenue earned through its dealer/distribution channels contributed 46.05% to KEI’s total cable and wire sales in Q3 of FY-24.

CapEx Underway, Investment being done in Greenfield and Brownfield Units

Mr. Anil Gupta further added that the company is doing a brownfield expansion by investing Rs. 110 crore in its plant at Silvassa to increase the capacity of house wire and Low Tension (LT) power cables by the close of FY-24, which is expected to increase the company’s revenue by about Rs. 800 to 900 crore. Mr. Gupta announced that another greenfield and brownfield expansion is underway at Bhiwadi, with an estimated cost of Rs. 110 crore. This expansion will increase the capacity of LT power cables and is expected to be operational by first quarter of FY-25.

Additionally, the company has planned a Rs. 300 crore capex for cable and wire production in Gujarat, with commercial production expected to begin in fourth quarter of FY-25.

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.