NEW DELHI:
KEI Industries Limited at the meeting of its board of directors approved standalone un-audited financial results for the quarter and half year ended September 30, 2018.
“ We have seen an exciting growth in net sales (Rs.996.79 Cr) in second quarter this year registering a strong growth of approx 33% as compared to the subsequent quarter in last year (Rs.748.82 Cr). Our focus on retail business has increased in last few years and so, we had strengthened our distribution network, which is now showing a positive result and we are hopeful to achieve 35 % growth in retail segment by end of this financial year. Considering the continuous burgeoning demand, we are also working on increasing production capacity, as in the 1st Phase of LT Power Cable at our new factory in Pathredi is completed and in now 2nd Phase, HT Power Cable expansion is expected to get over by February-March 2019. With the positive demand in the market, we foresee positive growth this year as well”, said Anil Gupta, Chairman & Managing Director- KEI Industries Limited.
FINANCIALS
During the 2 nd Quarter of FY 2018-19 Net Sales was Rs.996.79 Crore, against same quarter in previous year of Rs.748.82 Crore (net of excise adjusted), growth in Net Sales is approx. 33.11% over corresponding 2 nd Quarter last year.
Operating Profit during this Quarter was Rs.100.84 Crore against same quarter in the previous year of Rs.76.25 Crore, growth in Operating Profit is approx. 32.24% over previous period.
Further, PAT during this Quarter was Rs.41.37 Crore against same quarter in the previous year of Rs. 28.50 Crore, growth in PAT is approx. 45.18% over previous period. PAT/Net Sale is 4.15% against 3.81%.
Further, EBIDTA/Net Sale this quarter was Rs 10.12% against 10.18%.
Volume growth in Cable Division in Q2 is approx. 23% as compared to previous year same period.
During the 1 st half of FY 2018-19 Net Sales was Rs. 1880.69 Crore, against same period in previous year of Rs.1526.79 Crore, growth in Net Sales is approx. 23.18% over corresponding period last year. Operating Profit during the first half was Rs.186.98 Crore against same period in the previous year of Rs.153.05 Crore, growth in Operating Profit is approx. 22.17% over previous period. Further PAT has grown by 31.40% as against last year same period. PAT Margin has improved from 3.67% to 3.91% as against last year same period because Finance Cost has reduced from 3.75% to 3.14%.
Volume growth in Cable Division during first half is approx. 21% as compared to previous year same period. During the 2 nd Quarter &1 st Half of FY 2018-19.
During the 2 nd Quarter of FY 2018-19, Institutional sale (Domestic) is Rs 387 Crore against last year same period of Rs 245 Crore, out of which EHV Sale was Rs 7 Crore in this quarter against Rs 19 Crore in same period last year, because of delayed clearance of production of EHV cables from the customers. Now, from October onwards, EHV Cable production capacity will almost be fully utilised. Institutional sale (Export) is Rs 121 Crore as against Rs 137 Crore last year.
So, total Institutional sales is Rs. 508 Crore in 2nd Quarter as compared to Rs. 382 Crore last year same period. Total Institutional Sale growth in this quarter was 33%. During 1st half, Institutional sales of Cables has grown by 20% from Rs. 776 Crore to Rs. 936 Crore, Dealer Sales has grown by 45% from Rs. 440 Crore to Rs. 638 Crore as compared to same period last year.
During the 2nd Quarter of FY 2018-19 Sales through Dealer/ Distribution market was Rs.340 Crore as compared to Rs.230 Crore of last year same period. Hence, growth in Sales through Dealer / Distribution market was 48% as compared to last year same period.
The total active working dealer of the Company is approx.1300 Nos. Various major brand building exercises and electrician meets resulted in good growth in dealer distribution sales. The Company has sponsored chest logo for Rajasthan Royals in IPL season 2018. On full year basis Company is expecting more than 35% growth as compared to last year from this market.
During the 2nd Quarter of FY 2018-19 revenue from EPC division was Rs.149 Crore (apart from cable sale) against last year same period of Rs. 137 Crore. In 1 st half of FY 2018-19, EPC sales was Rs 307 Crore. Company is expected to achieve growth in the current FY 2018-19 by 18 – 20% in volume terms in Cable Division.
PENDING ORDERS
Pending order as on date is approx. Rs 3,401 Crore plus L1 Rs 540 Crore of EPC , EHV & Export as per below details.
Particulars In Hand Orders L-1 Orders Total
EPC 1,556 32 1,588
EHV 629 108 737
Cable 949 – 949
Export 267 400 667
Total 3,401 540 3,941
FINANCIAL CHARGES
Financial charges of the company in 2nd Quarter of FY 2018-19 was Rs.30.48 Crore as compared to last year same period of Rs.27.38 Crore (reduced to 3.05% from 3.65% of Net sales).
Financial charges of the company in the first half of FY 2018-19 was Rs.59.14 Crore as compared to last year same period of Rs.57.33 Crore (reduced to 3.14% from 3.75% of Net sales).
EXPANSION PLANS
Pathredi : 1st Phase of LT Power Cable has already been completed and in 2nd Phase, HT Power Cable expansion will be completed by February-March 2019 with cost of Rs. 30-35 Crore which will enhance capacity of HT Power Cable by Rs. 200 Crore.
Silvassa: Recently, Company bought Land & Building with investment of Rs. 16 Crore and will enhance capacity of House Wire. In 1st Phase Company will spend another approx.. Rs. 39-44 Crore for Capacity of Rs. 300 Crore and in 2nd Phase Company will spend in next financial year Rs. 30 Crore which will add another capacity of Rs. 300 Crore for House Wire.
