KEI Industries hosted a conference call on May
3, 2024. In the conference call the company was represented by Anil Gupta, CMD
and Rajeev Gupta, ED Finance & CFO.
Key takeaways of the call
Of the Q4FY24 overall sales the
contribution of B2C Sales (sales through Dealer/ Distribution) was
approx. 45.53% (46.52% in Q4FY23) and that of institutional Cables sales was
44.62% (46.85% in Q4FY23).
Domestic Institutional Wire and
cable sale in Q4FY24 is Rs 676 crore (as against Rs 692 crore in PY). Domestic
Institutional EHV cable sale in Q4FY24 stood at Rs 220 crore (against Rs 99
crore in Q4FY23).
Pending order book as end of Mar
31, 2024 was approx. Rs 3531 Crore [EPC orders Rs 771 crore, EHV Cables Rs 374
crore; Cables domestic Rs 1865 crore; Exports Rs 521 crore].
Expect a revenue growth of 17%
for FY25. EBITDA margin for current
fiscal will be maintained at about 11% and NP Margin is about 7.28%.
Capex incurred in FY24 was about
Rs 397 crore [including Rs 84 crore in Chinchpada in Silvasa, Rs 51 crore in Pathredi
in Rajasthan and Rs 197 crore in Greenfield plant at Sanad, Rs 9 crore towards
land in Khera Gujarat and Rs 56 crore on other existing plants].
The company will continue to incur
capex on brownfield capacity expansion in FY25. The company will be spending a
capex of about Rs 65 crore in next 1-2 months in Chinchpada for brownfield
expansion of wires & cables. Similarly
LT/HW capacity at Pathredi will be enhanced at an outlay of Rs 125 crore and
the company expect to incur balance Rs 74 crore of capex in next 3-4 months. The
Pathredi brownfield expanded capacity will be commissioned by end of Jun
2024.
Gujarat Greenfield manufacturing
plant for LT, HT and EHV cables - The construction is already started and the
commercial production will commence by Q1FY25-26. Of the total capex outlay of about Rs 900-1000
crore for Greenfield plant over next 3-4 years, about Rs 500-600 crore will be
during the next fiscal. Capacity
utilization for Cables was 92%; House Wire 71% and Industry Wires 90%.
Completion of ongoing brownfield
capacity expansion will facilitate 17% growth for FY25 and FY26. With completion of current round of capex and
commissioning of new capacities, the company expects to add another 100-150
basis points addition in EBITDA margin and that will happen in FY-28.
Company specific approval was
obtained are in the process of obtained for several countries. Selling only cables in USA and not wires.
Added EV charging cables to the
product portfolio during FY24 and the commercial production has already
started.
Will be maintaining EPC orders
(other than supply of cables to EPC projects) to 5-6% of total sales and that
will be maintained going forward as well. But the company will be capitalizing
on power sector EPC boom with supply of cables rather taking up direct EPC
orders.
Volume
growth in FY24 stood at about 24%.
Total
borrowings as end of March 31, 2024 was Rs 134 crore including Channel finance
of Rs 97 crore
|