KEI Industries Ltd

- KEI Industries Limited raised Rs. 2,000 crore through a Qualified Institutional Placement (QIP) on November 20, 2024, allocated as follows: Rs. 1,450 crore for CAPEX, Rs. 240 crore for general corporate purposes, Rs. 276 crore for repayment of term loan and WCDL, and Rs. 34 crore for QIP expenses. - As of March 31, 2025, Rs. 621 crore of the QIP funds have been utilized. - The company currently has substantial cash reserves (net cash available Rs. 1,491 crore), including Rs. 1,385 crore of unutilized QIP funds. - No new fundraising through debt or equity is mentioned for the immediate future; management indicated that additional funds or credit facilities will be raised only as needed. - The focus is on deploying existing funds mainly to complete the Sanand project and other CAPEX activities in FY 2025-26.

- The company raised Rs. 2000 crore through QIP on November 20, 2024, allocated as follows: - Rs. 1450 crore for CAPEX (primarily the Sanand project) - Rs. 240 crore for general corporate purposes - Rs. 276 crore for debt repayment - Rs. 34 crore for QIP expenses - As of March 31, 2025, Rs. 621 crore of QIP funds utilized; Rs. 1300 crore unutilized to be invested in completing the Sanand project in FY 25-26. - The Sanand project’s first phase of low tension and HT cables to commence commercial production by end of Q1 FY 25-26; entire project expected completed by end of FY 25-26. - Additional brownfield CAPEX completed in FY 24-25 at Chinchpada, Pathredi, Bhiwadi, and Silvassa plants adding capacity. - Maintenance CAPEX of about Rs. 100 crore planned alongside new land investments. - The company aims for 17-18% growth in FY 25-26 and 19-20% growth over next 2-3 years driven by capacity additions.

- KEI Industries expects a growth rate of 17%-18% in FY 2025-26, primarily due to phased commissioning of the Sanand plant and a strong order book. - From FY 2026-27 onwards, growth is projected to accelerate to 19%-20% owing to full utilization of new capacities. - The company aims to ramp up production at the Sanand facility to optimal capacity (70%-80%) over approximately three years. - Growth will be fueled by expanding dealer-distributor networks, especially in Eastern and Southern India, and increasing exports to multiple regions. - Major demand drivers include renewable power generation (solar and wind), coal-based thermal power, transmission and distribution infrastructure, railways, metro projects, highways, and electric vehicle infrastructure. - KEI plans continuous growth through economy of scale and capacity expansion without depending heavily on price increases. - Export markets will diversify beyond the US, mitigating dependence on any single geography.

- KEI Industries expects to grow revenues at 17-18% in FY 2025-26, driven by capacity ramp-up at the Sanand plant. - From FY 2026-27 onwards, the company targets a higher growth rate of 19-20% due to full utilization of new capacities. - EBITDA margins are projected to remain stable around 10.5-11% in FY 2025-26, with expected improvement of 0.5-1% from FY 2027-28 due to economies of scale. - Profit After Tax (PAT) growth is expected to follow revenue growth, with past PAT growth around 19.85% in FY 2024-25. - Management is confident of sustaining growth irrespective of contingencies or pricing fluctuations, leveraging increasing orders in domestic institutional and export markets. - The company aims to improve EPS in line with its revenue and margin growth strategy over the medium term.

- Total pending order book as of April 30, 2025: Approximately Rs. 3,839 crore. - Breakdown of pending orders: - EPC orders: Rs. 423 crore. - Extra High Voltage (EHV) cable pending orders: Rs. 603 crore. - Domestic cable orders: Rs. 2,112 crore. - Cable export orders: Rs. 701 crore. - Total cable and wire segment order book: Rs. 3,416 crore. - Strong order book of Domestic Institutional for cable sale, export orders for cable sales, and extra high voltage cables totaling Rs. 3,416 crore. - Current order book expected to help achieve 17-18% growth in FY 25-26 and 19-20% growth in the next 2-3 years.