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KEI Industries stock jumps 9% after strong June-quarter earnings
The company reported June-quarter revenue of ₹3,190 crore, up 23% year over year, alongside a 53% jump in EBITDA to ₹400 crore and a wider 12.4% EBITDA margin.
LiveMint Markets reported that KEI Industries shares rose 9% to a four-week high of ₹5,475 after the company released better-than-expected June-quarter results. The move came despite weakness elsewhere in Tuesday's broader market trade.
In the quarter, KEI Industries posted revenue of ₹3,190 crore, up 23% year over year, supported by a favorable revenue mix and operating leverage. EBITDA climbed 53% year over year to ₹400 crore, while EBITDA margin expanded by 240 basis points to 12.4%.
The company also said net profit, or PAT, increased 40% year over year to ₹270 crore, with profit growth trailing EBITDA growth due to lower other income. According to LiveMint Markets, JM Financial noted that profitability improvement could come from dealer and distributor channels, which contributed about 59% of total revenue, up from 51% a year ago.
KEI Industries additionally announced a ₹700 crore capacity expansion at its Salarpur facility, aimed at adding 50,000 km of cable manufacturing capacity and 40,000 metric tonnes of GI wire capacity. The project is expected to be commissioned in phases and completed by the second quarter of FY29, and JM Financial reiterated a Buy rating with a ₹5,800 target price.