KEI Industries Ltd

- 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%.

- 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.

- 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.

- 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.

- 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.