KEI Industries Limited , a leading player in the cable manufacturing sector, has announced strong financial results for the second quarter, demonstrating significant growth and expansion plans.

Financial Highlights

KEI Industries reported impressive financial performance for Q2:

For the half-year ended September 30, the company's revenue reached ₹53,166.65 million, with a net profit of ₹3,992.60 million. The basic earnings per share for H1 stood at ₹41.78.

Expansion and Future Outlook

The Board of Directors reviewed the progress of KEI Industries' new cable manufacturing facility in Sanand, Gujarat. Key points include:

• Production of LT/HT cables is expected to commence in November.
• EHV cable production is planned to start in Q4 of the next fiscal year.
• The company maintains a technical collaboration with BRUGG CABLES for manufacturing EHV cables up to 400kV.

This expansion aligns with KEI Industries' strategy to enhance its production capabilities and meet growing market demand.

Employee Stock Option Scheme

During the period, KEI Industries allotted 48,000 equity shares under its employee stock option scheme, increasing the company's paid-up capital to ₹191.20 million. This move reflects the company's commitment to employee engagement and retention.

Market Position and Outlook

KEI Industries' strong performance in Q2 showcases its resilience and growth potential in the cable manufacturing sector. The company's focus on expanding its manufacturing capabilities, particularly in high-value segments like EHV cables, positions it well for future growth.

The robust financial results, coupled with strategic expansion plans, indicate KEI Industries' strong market position and its ability to capitalize on the growing demand for quality cable products in various sectors.

Investors and market observers will likely keep a close watch on the progress of the Sanand facility and its impact on the company's future performance and market share in the coming quarters.

KEI Industries , a leading manufacturer of cables and wires, has reported strong financial results for the first quarter, demonstrating significant growth across key metrics. The company is now pursuing faster growth through capacity expansion and export initiatives.

Revenue Surge

The company's revenue stood at INR 25,903.00 million, marking a substantial year-over-year growth of 28.06%. This impressive increase underscores KEI Industries' strong market position and growing demand for its products.

Profitability Boost

KEI Industries witnessed a notable improvement in its profitability during the quarter:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached INR 2,976.00 million, up by 28.06% compared to the same quarter last year.
• The EBITDA margin improved to 11.49%, indicating enhanced operational efficiency.
• Profit After Tax (PAT) grew by 30.28% to INR 1,957.00 million, reflecting the company's ability to translate revenue growth into bottom-line results.

Segment Performance

The company's performance across various product segments contributed to its overall growth:

Strong Order Book

KEI Industries maintains a healthy order book of INR 40,121.00 million, providing visibility for future revenue growth. The order book composition includes:

• 56% from Cable-Domestic
• 17% from Cable-Export
• 14% from EPC projects
• 13% from EHV (Extra High Voltage) segment

Export Performance

Exports continue to be a significant contributor to KEI Industries' revenue, accounting for 13% of sales in the quarter. The company has expanded its presence to over 60 countries, with offices in UAE, South Africa, Nepal, and Gambia.

Growth Strategy and Industry Outlook

KEI Industries is pursuing faster growth through capacity expansion and export initiatives. The cable and wire industry is expected to grow 11-13% through FY29, driven by power infrastructure development, renewables, data centers, and EV charging infrastructure.

The company's management plans to:

1. Increase market share in the extra high voltage (EHV) segment
2. Enhance its order book
3. Improve profitability through branding initiatives
4. Expand globally

Outlook

KEI Industries' strong quarterly performance positions it well to capitalize on the growing demand in the cables and wires industry. The company's diverse product portfolio, expanding export presence, and robust order book provide a solid foundation for sustained growth in the coming quarters.

The management's focus on retail expansion, increased exports, and capacity enhancement through brownfield and greenfield projects is expected to drive future growth. Additionally, the company's strong financial position, with a comfortable debt profile and healthy return ratios, supports its expansion plans and market competitiveness.

As India's wires and cables market is projected to grow at a CAGR of 11-13% between FY24-29, KEI Industries is well-positioned to benefit from this industry growth trend and maintain its strong performance in the future.