KEI Industries reiterates revenue growth guidance for FY24
Anil Gupta, the Chairman and Managing Director (CMD) of KEI Industries emphasized the importance of planned capital expenditure (CapEx) for future growth, mentioning, "This year, we expect to do a CapEx of around ₹500 crore. And next year, it should be around ₹600-700 crore, because our new plant is coming up at Sanand, near Ahmedabad."
New-Delhi based KEI Industries expects the robust domestic demand from public as well as private sector to continue. Exports growth is also expected to remain strong.
The company's revenue grew 16% and margins expanded more than 300 basis points to 10.5%. While the cables and wires segment had a strong show while the engineering and construction solutions (EPC) segment lagged a little.
In a post-earnings call with CNBC-TV18, Anil Gupta, the Chairman and Managing Director (CMD) said the cable manufacturer will be able to maintain 16-17% growth in FY24 and for the next year, revenue growth is anticipated at around 15-16%.
Looking ahead, Gupta outlined the company's expectations for the coming years, stating, "This year, we expect to reach 12% of our sales from exports, and for reaching 20% exports, it will take two or three years because we need capacity. We are building up capacity, and as soon as new capacities are onboard, we should be able to bring those numbers in exports."
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Among segments, Gupta sees sales in the Extra High-Voltage Cable segment touching ₹550-600 crore by the end of the year.
He also discussed the capacity expansion plans. "This year, we expect to do a CapEx of around ₹500 crore. And next year, it should be around ₹600-700 crore, because our new plant is coming up at Sanand, near Ahmedabad."
The market capitalisation of KEI Industries is ₹27,228 crore.
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