Cable stock jumps 9% after company reported 17% YoY increase in net profits

The shares of leading Electrical Wires & Cables manufacturer surged 9 percent to ₹3,290 per share on wednesday’s second half of trade after the company reported strong quarter results.

Cable stock jumps 9% after company reported 17% YoY increase in net profits.

At 2:38 p.m., KEI Industries Ltd shares were quoting at ₹3,274.35 per share, up 8.52 percent from the previous close price on the exchange. The company has a market capitalization of ₹29,548 crore.

KEI Industries reported an increase of net profit of 17 percent year on year from ₹129 crore in Q3FY23 to ₹151 crore in Q3FY24, Similarly, during the same time frame, revenue also increased by 15 percent from ₹1,784 crore to ₹2,062 crore.

In comparison to the previous quarter, operational revenue has increased by 6 percent from ₹1,946 crores in Q2FY24 to ₹2,062 crores in Q3FY24, Further net profit increased by 8 percent from ₹140 crore to ₹151 crores. The company reported in its exchange filing.

While the company’s EBITDA margin in the December quarter has improved to 11.09% as against 10.98% YoY.

The company plans to invest over ₹ 1,000 crores over the next 3 to 4 years to set up a manufacturing facility in Gujarat. The company has also bought the property, and the first stage of the plant is projected to be operational within 18 months from the beginning of construction.

KEI Industries Ltd manufactures wires and cables (W&C) like EHV cables, HT cables, and LT cables, and sells them in India and overseas. The company has a presence in over 50 countries.

According to the recent shareholding pattern, the company promoters hold 37.08 percent of the company, Foreign institutional investors hold 30.95 percent and retail investors hold a 15.91 percent stake.

KEI Industries shares have gained 26 percent in the last six months and a multibagger return of 116 percent in a year.

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