KEI Industries Share Price Declines by 5% Despite 17.21% YoY Revenue Growth in Q2 FY 2025

KEI Industries Limited has announced its financial performance for the second quarter (Q2 FY25) and the first half of the fiscal year (H1 FY25).

Q2 FY25 Financial Highlights

In Q2 FY25, KEI Industries reported a revenue growth of 17.21% year-on-year (YoY). The company’s revenue for the quarter stood at ₹2,280 crore, up from ₹1,945 crore in the same period last year. 

However, despite the revenue increase, profitability margins saw a slight decline. The EBITDA margin for the quarter stood at 10.42%, down from 10.88% YoY. Meanwhile, the Profit After Tax (PAT) margin decreased to 6.79%, compared to 7.21% in Q2 FY24. In absolute terms, the company reported a PAT of ₹155 crore, an increase from ₹140 crore YoY.

H1 FY25 Financial Highlights

For the first half of FY25, KEI Industries posted revenue of ₹4,340 crore, a YoY increase of 16.50%, up from ₹3,725 crore in H1 FY24. The EBITDA margin in H1 FY25 was 10.83%, slightly higher than the 10.69% reported in H1 FY24. The PAT margin remained stable at 7.03%, a marginal improvement from 7.02% in the previous year. The company’s PAT for H1 FY25 was ₹305 crore, compared to ₹261 crore in H1 FY24.

KEI Industries also reported a robust order book, with pending orders worth approximately ₹3,847 crore, providing strong visibility for future revenue growth.

Fundraising Plans

In addition to its financial performance, KEI Industries announced its intention to raise up to ₹20,000 million through a Qualified Institutional Placement (QIP). This move is pending shareholder approval via a postal ballot and other necessary regulatory clearances. The company plans to issue equity shares or other eligible securities to raise funds, which could fuel its future growth plans.

KEI Industries Share Price Performance

The results were announced after market hours on October 15, 2024. KEI Industries’ share price opened at ₹4,589.95, down from its previous close of ₹4,690.65. As of 9:57 AM, the stock was trading at ₹4,428.50, down by more than 5%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.