KEI Industries reports blockbuster Q2FY19, stock up 12 per cent

KEI Industries reported stellar performance across the board in the second quarter of FY19. 

The company's net revenue for Q2FY19 surged almost 33 per cent yoy to Rs. 996.79 crore. Cable division recorded around 23 per cent volume growth in the quarter as compared to the same period in the previous year. 

Operating profit during the quarter grew by almost 32 per cent yoy to Rs. 100.84 crore. The EBITDA margin for the quarter remained largely flat at 10.12 per cent. 

The company’s net profit for the period jumped almost 45 per cent yoy to Rs. 41.4 crore. Net profit margin for Q2FY19 improved to 4.15 per cent from 3.81 per cent in Q2FY18. 

The company’s total order book as on Q2FY19 stood at Rs. 3,941 crore. The company expect to clock 18-20 per cent volume growth in FY19. 

On the expansion front, Phase 1 of LT Power Cable has already been completed and in Phase 2, HT Power Cable expansion will be completed by February-March 2019 with a cost of Rs. 30-35 crore which will enhance the capacity of HT Power Cable by Rs. 200 crore, the company stated in an exchange filing. 

Further, KEI Industries has bought Land & Building with an investment of Rs. 16 crore to enhance the capacity of House Wire segment. 

Reacting to the results, at 10:20 hours, the stock of KEI Industries was quoting Rs. 343.25 per share, up by Rs. 36.95 or 12.06 per cent on Thursday.