KEI Industries delivered strong financial results in Q3 FY25, showcasing growth across key performance metrics.
Revenue Performance:
- Revenue for the quarter stood at ₹2,467 crore, representing a 19.81% YoY increase from ₹2,059 crore in Q3 FY24 and an 8.23% QoQ growth from ₹2,280 crore in Q2 FY25.
- For the 9M FY25 period, revenue increased by 17.68% YoY to ₹6,807 crore, up from ₹5,785 crore in the same period last year.
Profitability:
- EBITDA for Q3 FY25 was ₹254 crore, reflecting a 11.25% YoY increase from ₹229 crore in Q3 FY24 and a 7.13% QoQ growth from ₹238 crore in Q2 FY25. The EBITDA margin stood at 10.31%, slightly down from 11.11% YoY.
- PAT (Profit After Tax) for the quarter came in at ₹165 crore, a 9.38% YoY growth from ₹151 crore in Q3 FY24 and a 6.47% QoQ increase from ₹155 crore in Q2 FY25. The PAT margin for the quarter was 6.68%, lower than 7.32% YoY.
- For the 9M FY25 period, PAT rose by 13.97% YoY to ₹470 crore, with a PAT margin of 6.90%, compared to 7.13% in 9M FY24.
Segmental Analysis:
- Domestic Institutional Wire and Cable Sales:
- Sales surged to ₹809 crore in Q3 FY25, compared to ₹556 crore in Q3 FY24.
- For 9M FY25, sales reached ₹1,998 crore, up from ₹1,560 crore in the same period last year.
- Domestic Institutional EHV Cable Sales:
- Sales declined to ₹41 crore in Q3 FY25 from ₹184 crore in Q3 FY24.
- For 9M FY25, sales dropped to ₹193 crore, compared to ₹402 crore in 9M FY24.
- Total Institutional Cable Sales (Including Export):
- Q3 FY25 sales were ₹1,106 crore, up by 18.22% YoY from ₹936 crore in Q3 FY24.
- For 9M FY25, sales increased by 8.32% YoY to ₹2,191 crore, compared to ₹1,962 crore in 9M FY24.
- Export Contribution:
- Exports contributed significantly, with revenue improving to ₹256 crore in Q3 FY25, up from ₹196 crore in Q3 FY24.
- For the 9M FY25 period, export revenue rose to ₹602 crore, from ₹617 crore in 9M FY24.
Operational Highlights:
- The company experienced a decline in EBITDA margins, impacted by higher material and employee costs.
- Employee costs rose sharply by 72% YoY, while other expenses increased by 127.8% YoY, attributed to Altek consolidation and one-off M&A transaction expenses of ₹80 crore.
Outlook:
KEI Industries continues to focus on expanding its domestic and export markets, backed by robust growth in institutional cable sales. However, the decline in EHV cable sales and slightly compressed margins indicate areas requiring strategic attention. The company remains optimistic about sustaining its growth trajectory while managing operational efficiencies in the upcoming quarters.
