KEI Industries (517569) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue rose to ₹2,060.50 crore, up 15.72% year-over-year, with EBITDA up 24.55% to ₹252.41 crore and PAT up 23.77% to ₹150.25 crore; margins improved year-over-year.

• Volume growth in the 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; total income was ₹20,783.43 million.

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

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

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

• Basic and diluted EPS for the quarter were ₹16.65 and ₹16.62, respectively.

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 due to scale.

• Export volumes expected to rise as new capacity comes online; US market projected at ₹200-₹300 crore for FY25.

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

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