KEI Industries shares fell 6.8% in trade on Wednesday, reaching an intraday low of Rs 4,365.55 per share, after the company disclosed lower profit margins in its second quarter (Q2FY25) results. At roughly 9:52 a.m., KEI Industries' share price was down 5.48 percent to Rs 4,430.2 per share. In comparison, the BSE Sensex was up 0.05 percent at 81,861.02 about the same time.
KEI Industries released its September 30-ended quarter results after market hours on Tuesday. The company's second-quarter results were mixed year on year. Its net profit increased, but the profit margin decreased. The lines and cables company's sales and profits before interest, tax, depreciation, and amortization (Ebitda) increased, but the Ebitda margin decreased.
In Q2FY25, KEI recorded profit after tax (PAT) of Rs 155 crore, up from Rs 140 crore the previous year, implying a 10.71 percent year-on-year growth. According to its filing, the company's PAT margin decreased by 0.42 percent to 6.79 percent, down from 7.21 percent the previous year.
The company's revenue for the current quarter was Rs 2,280 crore, up from Rs 1,945 crore in the previous year. KEI's Ebitda increased 9.2 percent year on year to Rs 238 crore, up from Rs 211 crore in the same period last year.
Meanwhile, its Ebitda margin fell 71 basis points to 10.42 percent in the September quarter, compared to 10.88 percent in the previous year. The board of KEI Industries also approved funding Rs 2,000 crore through a qualified institutional placement (QIP) issue.
"This is to inform you that the Board of Directors of the Company at their meeting held on Tuesday, the 15th day of October 2024, has approved... raising of funds by way of issuance of equity shares or other eligible securities for an aggregate amount of up to 20,000 million, through Qualified Institutions Placement (QIP), subject to the receipt of the approval of the shareholders of the Company through postal ballot and any other regulatory / statutory approvals (if any)."
KEI Industries is a manufacturer and supplier of electrical wires and cables in India. KEI Industries' shares have increased by 74.4 percent over the last year, compared to a 23% increase in the BSE Sensex.
