16 Oct , 2024 By : Debdeep Gupta
Shares of KEI Industries tanked as much as 7 percent on October 16 after the firm's operating margins contracted in the July-September quarter. Despite recording growth in the bottom line as well as topline, the company's EBITDA margin still shrank 70 basis points on year to 9.7 percent in the September quarter as compared to 10.4 percent in the corresponding period in the previous fiscal. The fall in margins was on account of the higher cost of raw materials and a spike in finance costs and employee expense benefits.
At 09.56 am, shares of KEI Industries were trading at Rs 4,432 on the NSE.
Meanwhile, the company's net profit grew 10.3 percent to Rs 154.8 crore for the second quarter of FY25, up from Rs 140.30 crore in the year-ago period. The cable maker's revenue also rose 17.2 percent to Rs 2,279.6 crore in comparison with Rs 1,945 crore in the corresponding period of the preceding fiscal.
Beyond that, the company also reported a pending order book of approximately Rs 3,847 crore by the end of Q2.
Furthermore, KEI Industries also announced plans to raise Rs 2,000 crore through a Qualified Institutional Placement (QIP). The company plans to issue equity shares or other eligible securities as part of this initiative. However, it did not disclose how it plans to use the proceeds from the fundraiser.
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