KEI Industries (517569) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 net sales reached ₹2,279.64 crore, up 17.21% year-over-year, with EBITDA at ₹237.52 crore and PAT at ₹154.81 crore, reflecting a 10.42% growth in profit after tax.

• H1 FY25 net sales were ₹4,340 crore, up 16.5% year-over-year, with EBITDA of ₹469.93 crore and PAT of ₹305 crore, both showing double-digit growth.

• Dealer/distribution (B2C) sales drove growth, contributing 55% in Q2 and 54% in H1, with Q2 B2C sales up 36.3% YoY.

• The Board approved and completed the voluntary liquidation of the Australian subsidiary in June 2024, with no material impact on profits.

Financial highlights

• Q2 EBITDA margin was 10.42% (vs. 10.88% last year); PAT margin was 6.79% (vs. 7.21%).

• H1 EBITDA margin stood at 10.83% (vs. 10.69% last year); PAT margin at 7.03% (vs. 7.02%).

• Finance cost in H1 rose to ₹27.49 crore (vs. ₹16.47 crore last year); financial charges as % of net sales increased to 2.63% from 0.44%.

• Basic EPS for Q2 FY25 was ₹17.16, compared to ₹15.54 in Q2 FY24.

• Book value per share increased to ₹382.96 (from ₹348.87 as of March 2024).

Outlook and guidance

• Management guides for 17% sales growth and EBITDA margin of 10.5%-11% for FY25.

• Brownfield Capex completed in H1; greenfield Capex of ₹900-1,000 crore at Sanand underway, with commercial production expected by Q1 FY26.

• Targeting 15%-16% CAGR in coming years, supported by ongoing and planned capacity expansions.

• Focus on growth in Cables & Wires and EPC segments, with ongoing investments in capacity and working capital.