The cable and wire maker reported a 31.3% year-on-year rise in net profit for the September quarter, driven by strong revenue growth and stable operating margins, although the company’s EBITDA performance came in muted.
Net profit rose to Rs 204 crore for the quarter ended September 30, up from Rs 155 crore a year earlier. Revenue from operations climbed 19.4% year-on-year to Rs 2,726 crore, compared with Rs 2,284 crore in the same period last year.
Margins for the September quarter stood at 9.9%, marking just a 20 basis points increase from the 9.7% reported in the same quarter of the previous fiscal. EBITDA for the quarter stood at Rs 269 crore, up from Rs 221 crore in the same quarter last year.
Following the results, domestic brokerage Nuvama Institutional Equities maintained its Buy call on the counter with a target price of Rs 4,450 per share. “We expect peers to report strong numbers given the robust demand on the cables front”, the brokerage added.
Analysts will look forward to management commentary on volume growth and margins outlook in C&W segment, Sanand plant commissioning timelines and any impact on growth/margins in FY27.Headquartered in New Delhi, KEI has been expanding its footprint in international markets and premium domestic segments. It continues to benefit from strong infrastructure and real estate demand, especially in the power and housing sectors.At about 9:35 am, shares of the company were trading at Rs 5,158, lower by 6% from the last close on the NSE. KEI Industries’ stock price has seen a sharp run-up lately, rallying 53% in the last 6 months.
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