Future growth expectations in sales/revenue/volumes?

KEI Industries targets a **16% to 18% CAGR growth** over the next 10 to 15 years, focusing on a disciplined and sustainable model. Capacity expansions: - Brownfield expansions at Chinchpada and Silvassa increasing capacity by ~INR2,000 crores by end of FY. - New Greenfield plant at Sanand expected to commence operation in Q4 FY 24-25. - Additional capex of INR300-350 crores planned annually for next 2-3 years to maintain growth. Export sales growing steadily with a target to increase exports to **15%-17% of total sales**. Domestic market growth: - Institutional cable business to grow s

Future growth expectations in earnings/operating earnings/profits/EPS?

KEI Industries aims for a **16% to 18% growth** per annum over the next 5-7 years in sales and earnings, driven by capacity expansions and disciplined capital allocation. The company plans to maintain **debt-free operations** by using internal accruals for growth investments. Capex of about **INR 500 crores for FY24**, with continued investments in Greenfield and Brownfield projects, supports capacity enhancement for sustained growth. EBITDA margins expected to stabilize around **10.75% to 11%** due to a favorable product mix and operating leverage. Export growth and increased sales in the hig

Current/ Expected Orderbook/ Pending Orders?

Total order book position stands at INR 3,363 crores. Breakdown of order book: - EPC division: INR 804 crores - Extra High Voltage (EHV) power cable (including some EPC portion): INR 725 crores - Domestic cable orders: INR 1,548 crores - Export orders: INR 286 crores Domestic institutional sales constitute 27% of sales. Export sales constitute 15% of sales. Dealer/distributor sales contribute 47%. Extra high-voltage power cable also contributes about 6% to B2B sales.

Any current/future new fundraising through debt or equity?

KEI Industries is focused on growing in a disciplined manner using internal resource generation. The company aims to remain largely debt-free over time. Current capex is funded through internal accruals, with no mention of new debt or equity fundraising. Growth guidance (16%-18% CAGR) is planned without increasing debt. Rajeev Gupta highlighted that increasing growth beyond this may necessitate debt, which they want to avoid. Brownfield and Greenfield capex are being financed internally; no fundraising from external debt or equity indicated.

Any current/future capex/capital investment/strategic investment?

FY '24 Greenfield capex at Sanand project: INR300 crores this year, INR400 crores next year, INR300 crores in FY '25-'26. FY '24 Brownfield capex: INR48 crores incurred in 1H and INR150 crores planned in 2H at Bhiwadi, Pathredi, Chinchpada, and Silvassa plants. Total estimated capex for FY '24: Approximately INR500 crores (including land value). Increased Brownfield capex at Chinchpada plant from planned INR45-50 crores to INR110 crores to add INR800-900 crores capacity. Pathredi plant Brownfield expansion with INR110 crores capex adding INR800-900 crores capacity, operational Q1 FY '24-25. Sa

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KEI Industries LtdQ3 FY23Industrial Products

KEI Industries Ltd Q3 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹5,500P/E: 53.3Market Cap: ₹48.9K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→KEI Industries targets a **16% to 18% CAGR growth** over the next 10 to 15 years, focusing on a disciplined and sustainable model.
→Capacity expansions:
→ - Brownfield expansions at Chinchpada and Silvassa increasing capacity by ~INR2,000 crores by end of FY.
→ - New Greenfield plant at Sanand expected to commence operation in Q4 FY 24-25.
→ - Additional capex of INR300-350 crores planned annually for next 2-3 years to maintain growth.
→Export sales growing steadily with a target to increase exports to **15%-17% of total sales**.
→Domestic market growth:
→ - Institutional cable business to grow steadily around 12%-13%.
→ - House wire segment targeting 20%-25% growth due to increased geography and retailer reach.
→EHV cable segment capacity of INR550-600 crores will be fully utilized, but growth to be maintained within 16%-18% range to avoid debt.
→Overall, the company aims for stable, balanced growth across domestic, export, and dealer segments to mitigate risk.

Margin guidance

Category 2

→KEI Industries aims for a **16% to 18% growth** per annum over the next 5-7 years in sales and earnings, driven by capacity expansions and disciplined capital allocation.
→The company plans to maintain **debt-free operations** by using internal accruals for growth investments.
→Capex of about **INR 500 crores for FY24**, with continued investments in Greenfield and Brownfield projects, supports capacity enhancement for sustained growth.
→EBITDA margins expected to stabilize around **10.75% to 11%** due to a favorable product mix and operating leverage.
→Export growth and increased sales in the high-margin **EHV cable segment** (currently at 15% EBITDA margin) will contribute positively.
→Overall, the company expects a **healthy trend in profits and EPS**, aligned with its targeted revenue growth and margin profile.

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Fundraise plans

→KEI Industries is focused on growing in a disciplined manner using internal resource generation.
→The company aims to remain largely debt-free over time.
→Current capex is funded through internal accruals, with no mention of new debt or equity fundraising.
→Growth guidance (16%-18% CAGR) is planned without increasing debt.
→Rajeev Gupta highlighted that increasing growth beyond this may necessitate debt, which they want to avoid.
→Brownfield and Greenfield capex are being financed internally; no fundraising from external debt or equity indicated.

Order book

→Total order book position stands at INR 3,363 crores.
→Breakdown of order book:
→ - EPC division: INR 804 crores
→ - Extra High Voltage (EHV) power cable (including some EPC portion): INR 725 crores
→ - Domestic cable orders: INR 1,548 crores
→ - Export orders: INR 286 crores
→Domestic institutional sales constitute 27% of sales.
→Export sales constitute 15% of sales.
→Dealer/distributor sales contribute 47%.
→Extra high-voltage power cable also contributes about 6% to B2B sales.

Capex plans

Yes

→FY '24 Greenfield capex at Sanand project: INR300 crores this year, INR400 crores next year, INR300 crores in FY '25-'26.
→FY '24 Brownfield capex: INR48 crores incurred in 1H and INR150 crores planned in 2H at Bhiwadi, Pathredi, Chinchpada, and Silvassa plants.
→Total estimated capex for FY '24: Approximately INR500 crores (including land value).
→Increased Brownfield capex at Chinchpada plant from planned INR45-50 crores to INR110 crores to add INR800-900 crores capacity.
→Pathredi plant Brownfield expansion with INR110 crores capex adding INR800-900 crores capacity, operational Q1 FY '24-25.
→Sanand Greenfield project: Commercial production expected Q4 FY '24-25.
→Focus on disciplined growth, mainly debt-free, to maintain steady CAGR growth of 15-16%.

How does KEI Industries Ltd rank vs peers in Industrial Products?

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