Capitaline

Results 20-Nov-21

Analysis

KEI Industries

EBIT up 11% largely on higher sales

Standalone net sales of KEI Industries for the quarter ended Sep 2021 has increased 30.52% to Rs 1,353.43 crore. Operating profit margin has declined from 11.39% to 10.81%, leading to 23.79% rise in operating profit to Rs 146.25 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 68.63% to 74.03%. Purchase of finished goods cost fell from 0.82% to 0.01%. Employee cost decreased from 4.54% to 3.40%. Other expenses fell from 15.20% to 12.44%. Contract job process charges fell from 3.48% to 2.27%. Other income fell 28.73% to Rs 2.58 crore. PBIDT rose 22.23% to Rs 148.83 crore. Provision for interest fell 33.51% to Rs 9.94 crore. PBDT rose 30.03% to Rs 138.89 crore. Provision for depreciation down 1.34% to Rs 14 crore. Profit before tax grew 34.84% to Rs 124.89 crore. Provision for tax was expense of Rs 32.91 crore, compared to Rs 24.56 crore. Effective tax rate was 26.35% compared to 26.52%. Profit after tax rose 35.15% to Rs 91.98 crore.

Sales of Segment - Cables segment has gone up 39.11% to Rs 1,211.23 crore (accounting for 78.73% of total sales). Sales of Segment - Stainless Steel Wire segment has gone up 54.39% to Rs 51.75 crore (accounting for 3.36% of total sales). Sales of Segment-EPC Projects segment has gone up 11.17% to Rs 275.39 crore (accounting for 17.90% of total sales). Inter-segment sales rose Rs 114.72 crore to Rs 183.36 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 10.65% to Rs 149.38 crore. PBIT of Segment - Cables segment rose 11.09% to Rs 123.86 crore (accounting for 82.92% of total PBIT). PBIT of Segment - Stainless Steel Wire segment rose 86.01% to Rs 4.19 crore (accounting for 2.80% of total PBIT). PBIT of Segment-EPC Projects segment rose 0.33% to Rs 21.33 crore (accounting for 14.28% of total PBIT).

PBIT margin of Segment - Cables segment fell from 12.81% to 10.23%. PBIT margin of Segment - Stainless Steel Wire segment rose from 6.72% to 8.09%. PBIT margin of Segment-EPC Projects segment fell from 8.58% to 7.75%. Overall PBIT margin fell from 11.72% to 9.71%.

Half-yearly performance

Standalone net sales (including other operating income) of KEI Industries has increased 33.03% to Rs 2,370.99 crore. Operating profit margin has jumped from 10.91% to 10.97%, leading to 33.71% rise in operating profit to Rs 259.98 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 66.89% to 73.26%. Purchase of finished goods cost fell from 0.61% to 0.01%. Employee cost decreased from 5.48% to 3.86%. Other expenses fell from 15.71% to 12.81%. Contract job process charges fell from 3.36% to 2.59%. Other income fell 56.22% to Rs 5.35 crore. PBIDT rose 28.40% to Rs 265.33 crore. Provision for interest fell 32.70% to Rs 21.36 crore. PBDT rose 39.48% to Rs 243.97 crore. Provision for depreciation down 3.20% to Rs 27.85 crore. Profit before tax grew 47.89% to Rs 216.12 crore. Provision for tax was expense of Rs 57.03 crore, compared to Rs 38.85 crore. Effective tax rate was 26.39% compared to 26.58%. Profit after tax rose 48.28% to Rs 159.09 crore.

Sales of Segment - Cables segment has gone up 38.15% to Rs 2,095.66 crore (accounting for 80.34% of total sales). Sales of Segment - Stainless Steel Wire segment has gone up 83.38% to Rs 99.55 crore (accounting for 3.82% of total sales). Sales of Segment-EPC Projects segment has gone down 2.55% to Rs 413.24 crore (accounting for 15.84% of total sales). Inter-segment sales rose Rs 211.18 crore to Rs 236.39 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 11.78% to Rs 259.56 crore. PBIT of Segment - Cables segment rose 15.71% to Rs 218.58 crore (accounting for 84.21% of total PBIT). PBIT of Segment - Stainless Steel Wire segment rose 69.65% to Rs 7.18 crore (accounting for 2.77% of total PBIT). PBIT of Segment-EPC Projects segment fell 13.51% to Rs 33.80 crore (accounting for 13.02% of total PBIT).

PBIT margin of Segment - Cables segment fell from 12.45% to 10.43%. PBIT margin of Segment - Stainless Steel Wire segment fell from 7.79% to 7.21%. PBIT margin of Segment-EPC Projects segment fell from 9.22% to 8.18%. Overall PBIT margin fell from 11.64% to 9.95%.

Other developments

Equity capital increased from Rs 17.97 crore as of 30 September 2020 to Rs 18.02 crore as of 30 September 2021. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 38.02% as of 30 September 2021 ,compared to 40.34% as of 30 September 2020 .

Standalone Loan funds rose to Rs 316.08 crore as of 30 September 2021 from Rs 271.34 crore as of 30 September 2020. Inventories rose to Rs 916.43 crore as of 30 September 2021 from Rs 699.79 crore as of 30 September 2020. Sundry debtors were higher at Rs 1,379.45 crore as of 30 September 2021 compared to Rs 1,298.60 crore as of 30 September 2020. Cash and bank balance declined from Rs 137.68 crore as of 30 September 2020 to Rs 64.08 crore as of 30 September 2021. Investments rose to Rs 7.95 crore as of 30 September 2021 from Rs 0.70 crore as of 30 September 2020 . Fixed assets declined from Rs 546.21 crore as of 30 September 2020 to Rs 534.76 crore as of 30 September 2021. Intangible assets declined from Rs 2.31 crore to Rs 1.31 crore.

Cash flow from operating activities has turned negative Rs 148.22 crore for YTD ended September 2021 from positive Rs 33.89 crore for YTD ended September 2020. Cash flow used in acquiring fixed assets during the YTD ended September 2021 stood at Rs 22.46 crore, compared to Rs 9.95 crore during the YTD ended September 2020.

KEI Industries : Standalone Results
	2109 (3)	2009 (3)	Var.(%)	2109 (6)	2009 (6)	Var.(%)	2103 (12)	2003 (12)	Var. (%)
Sales	1353.43	1036.94	31	2370.99	1782.24	33	4181.49	4884.27	-14
OPM (%)	10.8	11.4		11.0	10.9		11.0	10.2
OP	146.25	118.14	24	259.97	194.43	34	460.49	496.04	-7
Other inc.	2.58	3.62	-29	5.35	12.22	-56	20.06	16.47	22
PBIDT	148.82	121.76	22	265.32	206.65	28	480.55	512.51	-6
Interest	9.94	14.95	-34	21.36	31.74	-33	57.31	129.15	-56
PBDT	138.88	106.81	30	243.96	174.91	39	423.25	383.36	10
Dep.	14.00	14.19	-1	27.85	28.77	-3	57.81	56.69	2
PBT	124.89	92.62	35	216.11	146.14	48	365.43	326.67	12
EO Exp	0.00	0.00		0.00	0.00		0.00	0.00
PBT after EO	124.89	92.62	35	216.11	146.14	48	365.43	326.67	12
Taxation	32.91	24.56	34	57.03	38.85	47	92.12	71.56	29
PAT	91.98	68.06	35	159.09	107.29	48	273.31	255.10	7
EPS (Rs)*	#	#		#	#		30.3	28.3
* EPS is on current equity of Rs 18.021 crore, Face value of Rs 2
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

KEI Industries: Segment Results
Segment	% to total	2109 (3)	2009 (3)	Var. (%)	% to total	2109 (6)	2009 (6)	Var. (%)	% to total	2103 (12)	2003 (12)	Var.(%)
Sales
Cables	79	1211.23	870.68	39	80	2095.66	1516.90	38	76	3574.21	3982.41	-10
Stainless Steel Wire	3	51.75	33.52	54	4	99.55	54.29	83	3	141.65	137.53	3
EPC Projects	18	275.39	247.71	11	16	413.24	424.04	-3	21	976.70	1396.66	-30
Total Sales	100	1538.37	1151.91	34	100	2608.45	1995.23	31	100	4692.56	5516.60	-15
Less: Inter Segment Elimination		1.58	0.26			1.07	1.81			9.22	3.87
Less :Inter Segment Revenue		183.36	114.72			236.39	211.18			501.86	628.47
Net sales		1353.43	1036.94	31		2370.99	1782.24	33		4181.49	4884.27	-14

PBIT
Cables	83	123.86	111.49	11	84	218.58	188.90	16	81	416.43	440.32	-5
Stainless Steel Wire	3	4.19	2.25	86	3	7.18	4.23	70	1	6.50	8.76	-26
EPC Projects	14	21.33	21.26	0	13	33.80	39.08	-14	18	90.74	163.69	-45
Total PBIT	100	149.38	135.00	11	100	259.56	232.21	12	100	513.68	612.77	-16
Less: Intersegment Elimination		6.63	10.11	-34		9.48	22.19	-57		54.18	27.08	100
PBIT after IS Elimination		142.75	124.90	14		250.08	210.02			459.49	585.70
LESS: Interest expenes		9.94	14.95	-34		21.36	31.74	-33		57.31	129.15	-56
Add: Interest Income
Other income & unallocable expenses		7.92	17.33	-54		12.61	32.15	-61		36.75	129.88	-72
PBT before EO		124.89	92.62	35		216.11	146.14	48		365.43	326.67	12
Note: Figures in Rs crore

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