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 18, sales grew by around 33% YoY basis to Rs 996.79 crore. OPM was down by 10.1% thus, resulting the OP growth to 32% to Rs 101.01 crore. Other income stood at Rs 1.23 crore up by 20% YoY. Interest costs were higher by 11% to Rs 30.48 crore and depreciation cost rose 5% to Rs 8.45 crore. Thus, PBT was up by 51% to Rs 63.31 crore. After paying total tax of Rs 21.76 crore, up by 63%, PAT increased by 46% to Rs 41.55 crore for Sep 18 quarter.

Segment results for the quarter ended Sep 18

For the quarter, sales from the Cables segment stood at Rs 808.80 crore and accounted for 80% of sales. PBIT from the same was higher by 9% to Rs 83.90 crore and accounted for 76% of total.

For the quarter, sales from the stainless steel wire Segment stood at Rs 36.30 crore and accounted for 4% of sales. PBIT from the same was up by 38% to Rs 3.59 crore and accounted for 3% of total.

For the quarter, sales from the Turnkey division Segment stood at Rs 162.79 crore and accounted for 16% of sales. PBIT from the same was down by 26% to Rs 22.55 crore and accounted for 20% of total.

Performance for 6 months ended Sep 18

For 6 months ended June 18, net sales were up by 22% to Rs 1880.69 crore. OPM was flat at 9.9%, thus resulting in the OP growth to 22%. Other income was lower by 9% to Rs 2.37 crore. Interest was higher by 3% to Rs 59.14 crore. Depreciation was up by 5% to Rs 16.80 crore. After providing total tax of Rs 39.85 crore, PAT for 6 months ended Sep 18 stood at Rs 73.55 crore, up by 31% YoY.

Segmental results for 6 months ended Sep 18

For the 6 months, sales from the Cables segment stood at Rs 1506.6 crore and accounted for 24% of sales. PBIT from the same was up by 7% to Rs 156.58 crore and accounted for 73% of total.

For the 6 months, sales from the stainless steel wire Segment stood at Rs 67.37 crore and accounted for 14% of sales. PBIT from the same was up by 146% to Rs 6.75 crore and accounted for 3% of total.

For the 6 months, sales from the Turnkey division Segment stood at Rs 388.15 crore and accounted for 20% of sales. PBIT from the same was down by 22% to Rs 48.31 crore and accounted for 23% of total.

Other Updates

Volume growth in cables business in Sep 18 quarter stood at 23% YoY. For H1 the volume growth was 21% YoY.

Export sales stood at Rs 121 crore during Sep 18 quarter as compared to Rs 137 crore for Sep 17 period.

The company has total order book of around Rs 3401 crore as on Sep 18 of which EPC division stood at Rs 1556 crore, and cables order books stood at Rs 949 crore. Exports order stands at Rs 267 crore and EHV is around Rs 629 crore.

In Patherdi, the 1st Phase of LT Power Cable has already been completed and in 2nd Phase, HT Power cable expansion will be completed by February-March 2019 with cost of Rs. 30-35 Crore which will enhance capacity of HT Power Cable by Rs. 200 Crore.

In Silvassa the company bought Land & Building with investment of Rs.16 Crore and will enhance capacity of House Wire. In 1st Phase Company will spend another approx. Rs. 39-44 Crore for Capacity of Rs. 300 Crore and in 2nd Phase Company will spend in next financial year Rs. 30 Crore which will add another capacity of Rs. 300 Crore for House Wire.