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KEI’s Q1 FY-24 Revenue Grows 14% YoY, 16-17% Growth Expected in FY-24

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KEI Industries Ltd. [NSE: KEI, BOM: 517569], has announced its financials for the opening quarter of the 2023-24 fiscal.

KEI CMD – Cable Exports Up 25%, 16-17% Growth Expected Based on CapEx

During the company’s earnings call, Mr. Anil Gupta, Chairman & MD of KEI Industries said, Export sales achieved in this quarter is INR 307 crores against INR 247 crores last year, and it has grown by around 25%.

Mr. Gupta also briefed the company’s shareholders about KEI’s CapEx utilisation so far in FY-23, as well as investment plans for 2023-24. “During the year, the company has incurred a capital expenditure of approximately INR 114 crores in the Q1. And during the current financial year, doing a brownfield capex of around INR 45 crores in Silvassa plant, which will generate the additional top line revenue of LT power cables of around INR 500 crores. This will enable us to grow by approximately 16-17% in the current financial year”, he explained.

Apart from this, KEI has planned a CapEx of about Rs. 250 crore to Rs. 300 crore for greenfield expansion in Gujarat. Production at this cable and wire greenfield facility is scheduled to commence in FY-25. “We have already purchased land in Q1 and we will spend every year in capital expenditure of approximately INR 300 crores to INR 350 crores each year for the next 3 years to maintain a CAGR of 15% to 16% per annum, said Mr. Gupta.

KEI Industries’ Q1 FY-24 Standalone Financials

KEI Industries’ revenue from operations stood at Rs. 1,782.57 crore for Q1 of FY-23 on a standalone basis. Correspondingly, the company clocked Rs. 121.39 crore as its Profit After Tax (PAT) for the quarter ended 30th June 2023.

KEI reported Earnings Per share (EPS) of Rs. 13.46 for the opening quarter of 2023-24 financial year.

KEI Industries’ Q1 FY-24 Consolidated Financial Figures

YoY Comparison of KEI’s Financials: Q1 FY-24 vs. Q1 FY-23

Comparison of KEI Financials: Q1 FY23 vs Q1 FY24 vs Q4 FY23

KEI’s Q1 FY24 revenue from operations grew by 13.87% YoY to Rs. 1,782.57 crore from Rs. 1,565.41 crore in Q1 FY-23.

Further, there was an impressive increase of 16.98% YoY in the company’s PAT to Rs. 121.38 crore logged for Q1 of FY-24, as compared to Rs. 103.76 crore which was reported for Q1 of 2022-23.

KEI’s EPS during Q1 of FY-24 was Rs. 13.46 against Rs. 11.52 during Q1 of FY-23.

QoQ Comparison of KEI’s Financial Numbers: Q1 FY-24 vs. Q4 FY-23

On a Quarter-over-Quarter (QoQ) basis, the company’s revenue slumped by 8.08% from Rs. 1,954.53 crore clocked during Q4 of FY-23.

Further, the company’s PAT registered a considerable QoQ drop of 12.11% from Rs. 138.10 crore which was earned during the quarter ended 31st March 2023.

YoY Comparison of KEI’s Q1 FY-24 Segment-Wise Revenue

Revenue in Rs. in Cr.

KEI Segment-wise Financials: Q1 FY23 vs Q1 FY24

Cables & Wires: KEI’s Cables & Wires segment revenue grew by 13.47% to Rs. 1,611.93 crore in Q1 of FY-24 from Rs. 1,420.57 crore which was clocked during Q1 of FY-23.

Stainless Steel Wire: The company’s revenue from its Stainless Steel (SS) wire segment stood at Rs. 59.03 crore for the first quarter of 2023-24 against Rs. 61 crore during Q1 of FY-23. Therefore, KEI’s revenue from its SS wire segment has shrunk by 3.28% YoY.

EPC Projects: KEI’s revenue from the EPC business grew by 20.23% YoY to Rs. 184.66 crore in Q1 FY-24 from Rs. 153.59 crore in Q1 FY-23.

About KEI Industries Ltd.: 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.