KEI Industries Ltd's Q3FY19 standalone net profit rises 24% yoy to Rs48.39cr : Beats Estimates
The company’s standalone revenue stood at Rs1,087.49cr, up 22.37% yoy and 9.1% qoq.
Feb 04, 2019 09:02 IST India Infoline Research Team
KEI Industries Ltd Q3FY19
Standalone Results Q3FY19: (Rs. in cr)
| Q3FY19 | YoY (%) | |
|---|---|---|
| Revenue | 1,087.49 | 22.4 |
| EBITDA | 117.68 | 39.6 |
| EBITDA Margin (%) | 10.8 | 133 |
| Net Profit (adjusted) | 48.39 | 24 |
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KEI Industries’ December quarter result came above consensus estimates. Standalone revenue witnessed a strong growth of 22.4% yoy to Rs1,087.5cr in Q3FY19 vs. Rs888.7cr in Q3FY18, beating the consensus estimates by 4.1%. EBITDA increased by 39.6% yoy to Rs117.7cr in Q3FY19 as compared to Rs84.3cr in Q3FY18, 12.5% ahead of the consensus estimates. EBITDA margin expanded by 133bps yoy to 10.8% for the quarter under consideration. Net profit after taxes for the current quarter jumped 24% yoy to Rs48.4cr as compared to Rs39cr, beating the consensus estimates by 4.4%.
- Revenue growth for the quarter was mainly driven by strong growth in cable business (75% of sales mix).
- Profitability parameters were boosted by top-line growth further supported by decline in sub-contracting costs (down 60.5% yoy to Rs10.5cr).
- Revenue from cables business increased by 25.4% yoy to Rs878.2cr in Q3FY19. EBIT surged 33.7% yoy to Rs103.6cr for the quarter under review. EBITDA margin for the quarter came at 11.8% (vs. 11.1% in Q3FY18).
- Stainless steel and wires saw a healthy of 19.3% yoy to Rs33.5cr in Q3FY19. EBIT for the segment dropped 32.5% yoy to Rs1.32cr for the quarter. As a result, EBIT margin dropped from 7% in Q3FY18 to 3.9% in Q3FY19. The segment contributed 2.9% to the top-line.
- Turnkey Projects’ grew 5.7% yoy to Rs258.5cr in Q3FY19 vs. Rs244.5cr in Q3FY18. EBIT surged 89.1% yoy to Rs50.1cr during the current quarter. EBIT margin for the quarter under review was 19.4% (vs. 10.8% in Q3FY18). The segment contributed 22.1% to the total revenue of the company.
Technical View:
KEI Industries Ltd is currently trading at Rs. 369.10, up by 2.4 points or 0.65% from its previous closing of Rs. 366.70 on the BSE.
The scrip opened at Rs. 368.15 and has touched a high and low of Rs. 375 and Rs. 358.50 respectively. So far 1,52,295 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.
