Shares of this mid-cap stock associated with the ‘Cable’ industry soared 4 percent in Wednesday’s trading session after the company posted financial results for the quarter ended September 2023.
With a market capitalization of Rs 22,281.06 crores, the stocks of KEI Industries Limited closed at Rs 2,469.05 apiece on Wednesday. Comparing the intra-day high price of Rs 2,492.95 with the previous close of Rs 2,401.85, the company’s stock exhibits a gain of around 4 percent.
The company, in a recent exchange filing dated 31st October 2023, announced the financial results for Q2FY23-24, viz, for the quarter ended September 2023.
On a sequential basis, the company reported an increase in both, the operating revenues as well as net profit numbers, with the former moving up from Rs 1,782 crores during Q1FY23-24 to Rs 1,947 crores during Q2FY23-24, and, the latter, shifting up from Rs 121 crores to Rs 140 crores.
In congruence with the pattern shown above, the company reported an increase in the abovementioned metrics on a YoY basis as well.
The operating revenues went up from Rs 1,608 crores during Q2FY22-23 to Rs 1,947 crores during Q2FY23-24, and, the net profits, keeping the timeframe the same, shot up from Rs 107 crores to Rs 140 crores representing an increase of around 31 percent.
Historically, the company has showcased a consistent growth in the profitability metrics as well as the net profit margins.
The return on equity (RoE) showed a recent movement from 19.33 percent during FY21-22 to 20.27 percent during FY22-23, and, the return on capital employed (RoCE) increased from 24.10 percent to 26.07 percent. Moreover, the net profit margin rose marginally from 6.57 percent during FY21-22 to 6.91 percent during FY22-23.
As per the shareholding data available for the September 2023 quarter, the company’s Promoters hold a 37.08 percent stake, and the Foreign Institutional Investors (FIIs) holding a considerable stake of 29.57 percent in the company.
KEI Industries Limited is a India-based company engaged in the business of manufacturing and supplying power and other industrial cables. The company generates a maximum of revenue from the ‘wires & cables’ segment that include high tension (HT), extra high voltage (EHV), low tension (LT) power cables, winding wires, control and instrumentation cables, etc.
Written by Amit Madnani
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