KEI Industries (517569) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue rose to ₹20,604.97 million (₹2,060.50 crore), up 15.72% year-over-year, with EBITDA up 24.55% and PAT up 23.77%.

• EBITDA margin improved to 11.28% from 10.48% year-over-year; PAT margin increased to 7.29% from 6.82%.

• Net profit for the quarter was ₹1,502.49 million, compared to ₹1,213.79 million last year.

• Volume growth in cable division was 18% year-over-year, driven by strong real estate demand.

• The Board completed the voluntary liquidation of the Australian subsidiary, with no impact on quarterly profit.

Financial highlights

• Net sales for Q1 FY25 reached ₹2,060.50 crore, up from ₹1,780.53 crore year-over-year.

• EBITDA for the quarter was ₹252.41 crore, with margin at 11.28%.

• PAT for the quarter was ₹150.25 crore, up from ₹121.38 crore year-over-year.

• Distribution network (B2C) sales rose 29% to ₹1,085 crore, contributing 53% of total sales.

• Book value per share increased to ₹365.77 as of June 30, 2024.

Outlook and guidance

• Management maintains 16%-17% growth guidance for FY25 across all segments.

• Margin guidance for FY25 is close to 11%, with potential for 100 bps expansion by FY27.

• Export volumes expected to rise as new CAPEX comes online, especially in the US and Europe.

• Pending orders stand at approximately ₹3,590 crore, indicating a strong order book.

• House wire business targeted to grow at 20%-22% annually.