To follow the present demands of the market, KEI set foot into the manufacturing of EHV cables up to 220kV in collaboration with BRUGG Kables, a century old Swiss company.

For the quarter ended Sep 17, sales grew by around 20% YoY basis to Rs 748.83 crore. Volume growth was at 15% YoY. OPM was lower by 50 bps to 10.2% thus, restricting the OP growth to 15% to Rs 76.26 crore. Other income stood at Rs 1.03 crore as compared to Rs 1.92 crore for Sep 16 quarter. Interest costs were lower by 16% to Rs 27.38 crore and depreciation cost rose 17% to Rs 8.07 crore. Thus, PBT was up by 44% to Rs 41.84 crore. After paying total tax of Rs 13.33 crore, up by 74%, PAT increased by 33% to Rs 28.51 crore for Sep 17 quarter.

Segment results for the quarter ended Sep 17

For the quarter, sales from the Cables segment stood at Rs 596.67 crore and accounted for 75% of sales. PBIT from the same was up by 20% to Rs 77.05 crore and accounted for 70% of total.

For the quarter, sales from the stainless steel wire Segment stood at Rs 30.19 crore and accounted for 4% of sales. PBIT from the same was up by 58% to Rs 2.61 crore and accounted for 2% of total.

For the quarter, sales from the Turnkey division Segment stood at Rs 30.65 crore and accounted for 21% of sales. PBIT from the same was up by 46% to Rs 30.65 crore and accounted for 28% of total.

Performance for 6 months ended Sep 17

For 6 months ended Sep 17, net sales were up by 31% to Rs 1539.72 crore. OPM was lower by 30 bps to 9.9%, thus restricting the OP growth to 28%. Other income was down by 9% to Rs 2.59 crore. Interest was lower by 5% to Rs 57.33 crore. Depreciation was up by 19% to Rs 16.05 crore. After providing total tax of Rs 26.29 crore, PAT for 6 months ended Sep 17 stood at Rs 55.98 crore, up by 72% YoY.

Segmental results for 6 months ended Sep 17

For the six months, sales from the Cables segment stood at Rs 1213.67 crore and accounted for 70% of sales. PBIT from the same was up by 24% to Rs 145.92 crore and accounted for 69% of total.

For the six months, sales from the stainless steel wire Segment stood at Rs 59.26 crore and accounted for 3% of sales. PBIT from the same was down by 22% to Rs 2.74 crore and accounted for 1% of total.

For the six months, sales from the Turnkey division Segment stood at Rs 462.28 crore and accounted for 27% of sales. PBIT from the same was up by 94% to Rs 62.02 crore and accounted for 29% of total.

Other Updates

The company has total order book of around Rs 2347 crore as on Sep 17 of which EPC division stood at Rs 1428 crore, substation around Rs 189 crore, EHV around Rs 94 crore and cables order books stood at Rs 730 crore. The company has sufficient order book till FY 19. The focus is on execution.

GST rates have come down on cables from 28% to 18%. Total impact before GST was 18% on cables and now in GST it's back to 18%. So now it has become neutralized.

Company is hopeful to achieve at least 15% volume growth in FY 18