Kinetic Engineering reports 70% yoy jump in revenue during 9MFY22; Stock gains 1%

14 Feb 2022 , 09:16 AM

Kinetic Engineering Limited (KEL), a company spearheading a revolution in the automobile industry for over five decades has announced its financial results for Q3FY22.

Q3FY22 performance overview:

• In the third quarter, the company’s revenue from operation for nine months ended December 31, 2021 increased 70% compared to the corresponding nine months period ended December 31, 2020.
• Total sales crossed Rs90.53 crore, 4% more than the 12 months of the last financial year.
• EBITDA has increased from Rs2.44 crore to Rs10.8 crore for the same nine months period.
• 4th consecutive quarter with a net profit of Rs.13 lakh for the quarter.
• Net profit of Rs91 lakh for the nine months against a loss of Rs7.49 crore in the previous year.

Continuing the profitability trend, KEL reported fourth consecutive quarter of net profit. It reported a net profit of Rs91 lacs for the nine months ended Dec 2021 as against a net loss of Rs7.49 lacs for the corresponding period of the last financial year. Its revenue has already crossed Rs90.5 crore, which was 4% higher than the 12 months of the last financial year.

The company continues to maintain healthy EBIDTA, which reached Rs10.8 crore as against Rs2.44 crore for the corresponding period of the last financial year. Going by the current order book and momentum, the company is confident of crossing pre-covid levels in the current financial year. This is in spite of continued pressure on margins due to the increase in commodity prices and subdued demand from automotive customeRsamid the global chip shortage.

Ajinkya Firodia, MD, Kinetic Engineering Limited, said, “We are in the right direction to achieve our vision. I am pleased that our 100% made-in-India electric axles have received a positive response from our customeRsThe quarter’s performance was in line with our expectations, and we are confident to begin the next year on a promising note.

Our focus will be on EVs in the coming days, wherein we will be extensively making two-and three-wheeler chassis and complete gearboxes. This quarter, we have won a new order from our existing customer, Carraro, with a business potential of 7-8 crore per annum and have commenced supplies. KEL continues to work with its customeRsto overcome the ongoing challenges and grow profitably.”

New products developed for electric mobility have received a good response in the market. KEL continues to add new products into this space. It has recently finalized ordeRsfor the development of Chassis and other parts for electric moped manufactureRsand bagged an order for a gearbox for a leading 3-wheeler manufacturer.

On Monday morning trade, Kinetic Engineering was trading at Rs101 per piece higher by 1.10% on Sensex.