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KEI Industries (KEI) manufactures variety of cables namely High Tension (HT) and Low tension (LT) power cables, Control and Instrumentation Cables, other specialty cables, rubber insulated power, control & instrumentation cables. KEI also manufactures and sell wide range of steel wires, which have various applications such as manufacturing of springs and fastenings. 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 June 2019, standalone sales grew by 22% to Rs 1081.36 crore. OPM was higher by 80 bps to 10.5% thus, resulting the OP growth to 32% to Rs 113.94 crore. Other income grew 358% to Rs 5.20 crore. Interest costs were higher by 15% to Rs 32.96 crore and depreciation cost rose 82% to Rs 15.16 crore. Thus, PBT was up 41% to Rs 71.01 crore. After paying total tax of Rs 25.20 crore, up by 39%, PAT increased by 42% to Rs 45.81 crore.
Standalone segment results for the quarter ended June 2019
For the quarter, sales from the Cables segment stood at Rs 854.89 crore, up by 23% and accounted for 72% of sales. PBIT from the same was higher by 23% to Rs 89.10 crore and accounted for 66% of total.
For the quarter, sales from the stainless steel wire Segment stood at Rs 31.79 crore, up 2% and accounted for 3% of sales. PBIT from the same was down 39% to Rs 1.92 crore and accounted for 1% of total.
For the quarter, sales from the Turnkey division stood at Rs 307.38 crore and accounted for 26% of sales. PBIT from the same was up 72% to Rs 44.30 crore and accounted for 33% of total.
Standalone performance for 12 months ended Mar 19
For 12 months ended Mar 19, standalone net sales were up by 22% to Rs 4226.96 crore. OPM was up by 70 bps at 10.5%, thus resulting in the OP growth of 31%. Other income was lower by 23% to Rs 7.19 crore. Interest was higher by 22% to Rs 136.15 crore. Depreciation was up by 5% to Rs 33.95 crore. After providing total tax of Rs 97.43 crore up by 63%, PAT for 12 months ended Mar 19 stood at Rs 181.87 crore, up by 26% YoY.
Standalone segmental results for 12 months ended Mar 19
For the 12 months, sales from the Cables segment stood at Rs 3359.61 crore up by 23% and accounted for 74% of sales. PBIT from the same was up by 25% to Rs 368.10 crore and accounted for 71% of total with PBIT margin of 11%. For the 12 months, sales from the stainless steel wire Segment stood at Rs 138.02 crore up by 17% and accounted for 3% of sales. PBIT from the same was up by 29% to Rs 9.09 crore and accounted for 2% of total. For the 12 months, sales from the Turnkey division Segment stood at Rs 1033.26 crore up by 8% and accounted for 23% of sales. PBIT from the same was up by 37% to Rs 142.22 crore and accounted for 27% of total with PBIT margin at 13.8% as compared to 10.9% for FY 18.
Valuation
The stock trades at Rs 423.
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