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.
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.
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