KEI Industries reported a 10.3% rise in net profit, reaching ₹154.8 crore in Q2 FY25. The company’s revenue surged 17.2% to ₹2,279.6 crore, while EBITDA increased 9.1% to ₹220.5 crore. The EBITDA margin narrowed slightly to 9.7% from 10.4% last year. Additionally, the board approved raising up to ₹2,000 crore through a Qualified Institutional Placement (QIP).
Key Financial Highlights:
- Revenue: Up 9.5% to ₹5,036.20 crore from ₹4,599.40 crore in the previous year, indicating steady top-line growth.
- Net Profit: Increased by 14.6% to ₹296.50 crore from ₹258.70 crore, showcasing strong bottom-line performance.
- Debt to Equity Ratio: Improved to 0.6, demonstrating reduced leverage.
- Return on Equity (ROE): Improved to 18.5%, reflecting enhanced shareholder value.
However, some challenges persist. The operating margin has slipped to 10.9% from 12.3% last year, indicating reduced profitability. Additionally, the inventory turnover ratio has declined, which may result in increased inventory costs.
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