KEI Industries’ stock slumps ~11% owing to lower margins in Q2

16 Oct 2024 , 12:28 PM

Shares of KEI Industries fell as much as 7% on October 16 after the company’s operating margins decreased in the July-September quarter. Despite growth in both the bottom and top lines, the company’s EBITDA margin fell 70 basis points year on year to 9.7% in the September quarter, compared to 10.4% in the same time in the previous year. Higher raw material costs, as well as an increase in finance costs and employee expenditure benefits, all contributed to the margin decline.

Meanwhile, the company’s net profit increased 10.30% to ₹154.8 Crore in the second quarter of FY25, up from ₹140.30 Crore in the previous year. The cable maker’s sales increased 17.2% to ₹2,279.6 Crore, up from ₹1,945 Crore in the previous fiscal year.

In addition, by the conclusion of the second quarter, the company recorded a pending order book of roughly ₹3,847 Crore.

Furthermore, KEI Industries has declared plans to raise up to ₹2,000 Crore via a Qualified Institutional Placement (QIP). The corporation intends to issue equity shares or other qualifying securities as part of this program. However, it did not say how the fund-raising funds will be used.

At around 12.01 PM, KEI Industries was trading 10.15% lower at ₹4,214.60 per piece, against the previous close of ₹4,690.65 on NSE. The counter touched an intraday high and low of ₹4,590, and ₹4,205, respectively.

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