Key takeaways from KEI Q2 con call
-
Drop in Margins is mainly due to increase in raw material prices of Copper, Management is extremely confident in maintaining their guidance of 10.5% to 11.0% for FY 25. For H1 FY 25 it is 10.88%
-
Revenue growth is in line with guided growth of 17% (guidance 15%-17% long term)
-
EPC business will continue to stay at 5%-6% of total revenue, drop this quarter will be compensated in the next couple of quarters.
-
QIP is done with a
- broader vision of staying a debt free company in the long run. Management does not believe in spending cash on interest costs.
- purpose to utilize the QIP proceeds for Sanad plant, which has a total capital outlay of 1800-2000 Cr, and a revenue capacity of Rs. 5,000 Crs.
- purpose to restrict the credit line / borrowing facility only to meet working capital requirements
-
Management is confident of not going for further fund raise either through debt or QIP for next 5-7 years post this fund raise, and will continue to grow at 15-17%.
-
Order book is around Rs. 3,847 Crs
-
Total active dealers are around 2038 numbers, an increase of around 33% YOY.
| Subscribe To Our Free Newsletter |
