KEI Industries posts healthy 230 per cent rise in Net Profit of Q1

KEI Industries (KEI), one of the leading company in the wires and cables industry recently declared its June quarter results. The company reported a strong 230 per cent year on year growth in PAT, which stood at Rs 11.7 crore in Q1FY16 as compared to Rs 3.55 crore in Q1FY15. In response to the strong results the shares of the company surged about 6 per cent and touched one year high of Rs 117.90 in the BSE on Friday (7th August).

KEI reported a 31.96 per cent growth in operating revenue, amounting to Rs 518.4 crore in Q1FY16 compared to Rs 392.86 crore in Q1FY15. The company's revenue increased mainly due to 32.12 per cent rise in Cable segment revenue to Rs 432.69 crore on year on year basis and its contribution to the total revenue reached at 78 per cent. Remaining revenue contribution contains 18 per cent from Turnkey project segment and a 4 per cent from Stainless steel Wire segment.

The Company's operating expenditure increased by 30.65 per cent to Rs 463.68 crore in Q1FY16 against Rs 354.89 crore in Q1FY15. KEI's operating expenses jumped mainly due to a 23.33 per cent rise in consumption of raw material, which stands at Rs 398.55 crore in Q1FY16 as compared to Rs 323.15 crore in Q1FY15. Its other expenses were also raised by 45.90 per cent as well as employee cost incremented by 29.58 per cent compared to the same period of last year.

The EBITDA boosted by 44.11 per cent on an annual basis to Rs 54.72 crore in Q1FY16 and its EBITDA margin expanded by 89 basis points to 10.56 per cent as compared to the same period of last financial year, led by increased raw material cost. While, its PBT jumped by 192.01 per cent from Rs 5.76 crore in Q1FY15 to reach Rs 16.82 crore in Q1FY16. KEI's depreciation expenses declined marginally by 4.13 per cent and its interest cost increased by 24.77 per cent to Rs 33.14 crore compared to the same period of last financial year. Its PAT margin expanded by 136 basis points to reach 2.26 per cent on year on year basis. The company's tax expenses includes the deferred tax of Rs 1.5 crore on an estimated basis.

KEI's shareholding pattern indicates that FII holdings contracted by 30 basis points to 0.74 per cent and DII holdings expanded by 35 basis points to 0.36 per cent during Q1FY16 as compared to the same period of last year.