Q1 2027 KEI Industries Ltd Earnings Call Transcript
Key Points
- Strong financial performance with net sales growing 23% YoY to INR3,185 crore and PAT up 40% to INR274 crore.
- Operating margin improved to 12.43% from 11.49% YoY, driven by better product mix and operational efficiencies.
- Robust domestic wire and cable sales growth of 29%, with retail/dealer contribution rising to 59% of total sales.
- Extra high-voltage (EHV) cable sales surged 47% YoY to INR186 crore, with a strong order book of INR793 crore.
- Healthy balance sheet with cash and bank balances of INR1,054 crore and a debt-free status, supporting future growth.
- Export sales declined 9% YoY to INR341 crore due to Middle East geopolitical tensions and US custom duty issues.
- Sanand plant capacity ramp-up is slower than expected, with utilization at 72% for cables and 61% for house wires.
- Inventory levels increased sharply, partly due to Sanand ramp-up and Ind AS adjustments for undelivered export orders.
- Other income dropped significantly to INR14.59 crore from INR28.77 crore YoY, as QIP funds were utilized.
- Management remains conservative on growth guidance (20%+), despite industry growth of 30%+, potentially limiting market share gains.
Ladies and gentlemen, good day, and welcome to the KEI Industries Q1 FY27 earnings conference call hosted by Nuvama Institutional Equities. (Operator Instructions) Please note that this conference is being recorded.
I will now hand the conference over to Mr. Achal Lohade from Nuvama Institutional Equities. Thank you, and over to you.
Thank you. Good afternoon, everyone. On behalf of Nuvama Institutional Equities, we are glad to host the senior management of KEI Industries Limited to discuss the Q1 FY27 earnings.
We have with us Mr. Anil Gupta, Chairman cum Managing Director of the company; Mr. Rajeev Gupta, Executive Director of Finance and CFO.
We'll start the call with the opening remarks from the management and then move to Q&A session. Thank you and over to you, sir.
Thank you, Achal. Good afternoon. I'm Anil Gupta, CMD, KEI Industries Limited. I hope that you must have
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