KEI Industries Q3 Results Review - Inline; Promising Outlook Intact: Systematix
KEI’s strong results in Q3 was driven by robust 20%+ volume growth, domestic LT/HT cables, rebound in EHV cables/exports.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
KEI Industries Ltd.’s strong results in Q3 FY23 (revenue/Ebitda/profit after tax 14%/16%/27% YoY) was driven by robust 20% plus volume growth, domestic low tension/high tension cables and rebound in extra high voltage cables/exports.
Gross (24.7%) and Ebitda margins (10.2%) were broadly stable QoQ, despite lower retail sales mix (44.6% versus 47.3% in Q2; nine months: 44.5%).
KEI Industries maintained its net cash status at Rs 850 million (including acceptances) and healthy order book at Rs 34.4 billion (up by Rs 4.3 billion QoQ).
Management reiterated its guidance of 17% plus revenue growth and 10.5-11% Ebitda margin. Rise in retail sales mix (50% mix in two years at 25% plus sales compound annual growth rate) will likely continue to drive KEI Industries’ margins and cash flows (to be used for future capex to maintain 15% plus CAGR over the next five years).
The low tension cables (~Rs 500 million at Silvassa; ~Rs 4 billion revenue potential) and a greenfield capex plant (~Rs 8 billion at Baroda) are expected to be operational in the next three-four years.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.