System: None
User: 
    Consider you are a stock market news analyser. You are given with the parsed text of a pdf of a stock.
    You have to analyse the text given and summarize the text to extract the following information:

    - What is the current capital expenditure of the company?
    - What is the current PAT of the company and what is the projected (potential or proposed) PAT of the company?
      Also give reason from the document that how did you came to this figure?
    - What is the current revenue/topline of the company and what is the projected (potential or proposed) revenue of the company?
      Also give reason from the document that how did you came to this figure?
    - What is the projected/potential/proposed profit and its brief details describing how it can be achieved?
    - What is the CAGR mentioned in the text?
    - What is the Turnover of the company mentioned in the text with timeframe like monthly, quarterly or annual?
    - Mention the time frame like quarterly, monthly or yearly as mentioned in the extracted text.

    The text is:
                                                                                                                           
KEI Industries Limited         
 
Registered and Corporate Office:  D-90, Okhla Industrial Area, Phase-1, New Delhi- 1 10020 CIN:  L74899DL1992PLC051527  
Tel.: <PRESIDIO_ANONYMIZED_PHONE_NUMBER>/8642/0242, Email: info@kei-ind.com    Website:  www.kei-ind.com  
 
 
KEI/BSE/2024-25                                                                               Date: 22 .10.2024  
The Manager,         
Listing Operation, 
BSE Limited, 
25th Floor, Phiroze Jeejeebhoy Towers,  
Dalal Street, Fort, Mumbai- 400 001 
Sub: Transcript of Analysts/Investors Call pertaini ng to the Financial Results for the Second 
quarter ended 30 th  September 2024 
Dear Sir/Madam, 
Pursuant to Regulation 30 of the SEBI (Listing Obli gations and Disclosure Requirements) Regulations, 
2015, we hereby inform the exchanges that the trans cript of audio call recording of the Company’s 
Analyst Call held on Wednesday, October 16, 2024 to  discuss the Un-Audited Financial Results 
(Standalone and Consolidated) for the second quarte r ended 30 th  September, 2024 is attached herewith.  
The transcript is also available on the website of the Company:  
https://www.kei-ind.com/wp-content/uploads/2024/10/ transcript-24-25-quarter-2.pdf  
This is for your information and record. 
Yours truly, 
  For KEI INDUSTRIES LIMITED 
 
 
  
 
(KISHORE KUNAL) 
VP (Corporate Finance) & Company Secretary 
 
CC: 
The National Stock Exchange of India Ltd.  
Listing Division, Exchange Plaza, Plot No. C/1,  
G Block, Bandra Kurla Complex, Bandra (E),  
Mumbai – 400 051 The Calcutta Stock Exchange Ltd. 
The Senior Manager, Listing Division,  
7, Lyons Range, Kolkata-700001 
  
Page 1 of 17  
  
  
“KEI Industries Limited 
Q2 FY '25 Earnings Conference Call” 
October 16, 2024 
 
 
 
 
 
 
 
 
       
 
MANAGEMENT : M R. ANIL GUPTA – CHAIRMAN AND MANAGING 
DIRECTOR – KEI INDUSTRIES LIMITED  
 M R. RAJEEV GUPTA – CHIEF FINANCIAL OFFICER – 
KEI INDUSTRIES LIMITED  
 
MODERATOR : M R. RAHUL DANI – MONARCH NETWORTH CAPITAL 
LIMITED  
 
       
KEI Industries Limited 
  October 16, 2024 
Page 2 of 17  
 
Moderator: Ladies and gentlemen, good day, and welcome to the Q2 FY '25 Earnings Conference Call of 
KEI Industries hosted by Monarch Networth Capital. As a reminder, all participants' lines will 
be in the listen-only mode and there will be an opp ortunity for you to ask questions after the 
presentation concludes. Should you need assistance during the conference call, please signal an 
operator by pressing star then zero on your touch-t one phone. Please note that this conference is 
being recorded. 
I now hand the conference over to Mr. Rahul Dani fr om Monarch Networth Capital. Thank you, 
and over to you, sir. 
Rahul Dani: Yes. Thank you, Joshua. Good afternoon, everyone. O n behalf of Monarch Networth Capital, 
we're delighted to host the senior management of KE I Industries. We have with us Mr. Anil 
Gupta, Chairman and Managing Director of the compan y; Mr. Rajeev Gupta, CFO of the 
company. We will start the call with opening remark s from the management and then move to 
Q&A. Thank you and over to you, sir. 
Anil Gupta: Yes. So  good afternoon, everyone. Thank you very m uch. I'm <PRESIDIO_ANONYMIZED_PERSON>, Chairman and 
Managing Director, KEI Industries Limited. I welcom e all of you on this conference call. I'll 
give a brief summary of this quarter and first half . 
Net sales in Q2 in financial year '24-'25 is INR2,2 79.64 crores against INR1,945 crores last year. 
The growth in net sales is 17.21%, EBITDA is INR237 .52 crores with a margin of 10.42% 
EBITDA/net sales margin as against 10.88% in the sa me period previous year. Profit after tax 
in this quarter is INR154.81 crores against INR140. 2 crores last year. So, growth in the PAT is 
10.42%. Profit after tax/net sales margin is 6.79% versus 7.21% in the previous year. 
Domestic Institutional cable sale, wire and cable i s INR615 crores against INR511 crores with 
a growth of 20%. Domestic Institutional cable sale,  extra-high voltage cable is INR73 crores 
against INR169 crores in the previous year. Capacit y of extra-high voltage cable has been used 
for medium-voltage and high-voltage power cables. S o, export sales in this quarter is INR241 
crores against INR249 crores last year. The total I nstitutional cable sales contribution is 39% 
against 44% in the previous year same period. 
Sales through dealer network  dealer and distributi on network is INR1,258 crores in second 
quarter against INR923 crores last year. Growth in this segment is 36%. B2C sale  distribution 
network sale has contributed 55% in the second quar ter as against 47% in the previous year same 
period. EPC sale other than cable is INR80 crores a gainst INR113 crores last year. Out of total 
sales of EPC, EHV EPC sale is INR39 crores against INR44 crores in the same quarter last year. 
Stainless steel wire sale in Q2 is INR59 crores aga inst INR58 crores last year. 
Now I will give a summary of first half, that means  April to September. Net sales in H1 in this 
financial year is INR4,340 crores against INR3,725 crores last year. The growth in net sales is 
16.5%. EBITDA is INR469.93 crores against INR398 cr ores. Growth is 18% in EBITDA. 
EBITDA/net sales margin is 10.83% as against 10.69%  in the same period previous year. Profit 
after tax in H1 financial year '24-'25 is INR305 cr ores against INR261.59 crores. Growth in PAT 
is 16.62%. PAT/net sales margin in 6 months is 7.03 % versus 7.02%.        
KEI Industries Limited 
  October 16, 2024 
Page 3 of 17  
 
Domestic Institutional cable sales  growth is 19% i n the first 6 months at INR1,189 crores. EHV 
sale is INR152 crores against INR218 crores last ye ar. Capacity of extra-high voltage cable has 
been used for producing HT power cables. Export sal es is INR474 crores. So, the total 
Institutional sales contribution in H1 is 39% again st 44% in the same period previous year. 
 Sales through dealer network is INR2,343 crores ag ainst INR1,765 crores. Growth is 
approximately 33%, again through dealer network, th at is B2C sales. The total acting working 
dealer of the company as on 30th September was appr oximately 2,038. B2C sale has contributed 
54% in H1 as against 47% in the same period last ye ar. 
 Volume increased in the Cable division on the basi s of production for consumption of metals in 
H1 is against  as compared to previous year same pe riod is around 14%. Pending order as on 
13th October '24 is INR3,847 crores, out of which E PC is INR603 crores; extra-high voltage 
cable, INR301 crores. We are L1 in orders of INR186  crores of Tata Power 220 kV cables, 
which is yet to be officially come. Domestic cable order is INR2,368 crores and export order 
spending are INR575 crores. 
 External rating. CARE has upgraded company's long- term rating as AA+. Long-term rating from 
India Rating and Research Private Limited and ICRA is AA. Short-term rating from India ratings 
ICRA and CARE is A1+. Book value. The book value fo r per equity share of the company is 
INR382.96 against INR348.87 on March 31, 2024. The total borrowings in this  at the moment 
is INR314 crores; channel finance, INR109 crores; c ash and bank balances, INR245 crores as 
against total borrowings of INR134 crores as on 31s t March, '24. Acceptance of creditors as on 
30th September '24 is INR357 crores as against INR5 06 crores in March '24. So, the net debt is 
INR426 crores as on 30th September '24. 
 During H1 '24-'25, finance cost was INR27.49 crore s against INR16.47 crores in the previous 
year same period. So the percentage of financial ch arges on net sales has increased in this period 
2.63% from 0.44% in the last year. Interest income from bank deposits/others in H1 is INR13.32 
crores, which is included in the other income. It w as INR9.83 crores in the previous year same 
period. The future outlook of the company during H1  of FY '24-'25, company has incurred a 
capital expenditure payment of approximately INR312  crores, out of which Sanand, INR169 
crores; Chinchpada in Silvassa, INR48 crores; Bhiwa di, INR25 crores; Pathredi, INR38 crores; 
and other plants and locations, INR32 crores. 
 Brownfield capex at Chinchpada and Pathredi to add  further capacities of wire and power cable 
has been completed in H1 and fully commissioned. Af ter the completion of brownfield capex, 
capacity utilized during H1 '24-'25, approximately 78% in the Cable division, 71% in the House 
Wire division and 93% in the Stainless Steel Wire d ivision. This brownfield capex will enable 
us to grow by 16% to 17% in this financial year. 
 Apart from the brownfield capex in FY '24-'25, com pany has planned a total capex of INR900 
crores to INR1,000 crores on greenfield expansion a t Sanand for expansion for LT, HT and EHV 
cables in Gujarat, commercial production for which will commence by first quarter of FY '25-
'26. We started the construction in FY '23-'24. Fur ther, we will spend another INR600 crores in        
KEI Industries Limited 
  October 16, 2024 
Page 4 of 17  
 
the next financial year to complete the project to maintain a CAGR of 15% to 16% per annum 
as against achieved CAGR of 14% to 15% during the l ast 15 years. 
 So this is a brief summary. Thank you very much. A nd now you can come with any questions 
you may have, and we'll be pleased to answer it. Th ank you. 
Moderator: Thank you very much sir. The first question is from  the line of Mr. Rahul Agarwal from IKIGAI 
Asset Management. Please go ahead.  
Rahul Agarwal: Hi, very good afternoon Anil ji and Rajeev ji. Than k you for the opportunity. Sir, first question 
was on the QIP fund raise. Based on whatever cash f low projections we understand of the 
business and based on your guidance for fiscal '25- '26, my sense was a INR400 crores to INR500 
crores debt would have been suffice to incur all th e capex given the interim accrual improvement 
for the business. And so could you explain sir, wha t is the rationale? And any change in the 
capex plan? Where do you plan to invest this money?  
Rajeev Gupta: Actually, after the brownfield capex where we had a lready invested INR250 crores plus and the 
additional expenditure on the Sanand project, where in the INR1,800 crores to INR1,900 crores 
will be required to complete the full project by ne xt financial year. So, considering in mind, then 
while going for the term loan, if we take as a INR6 00 crores, which we have already sanctioned 
from the bank also, there will be another requireme nt for working capital loan also for the next 
financial year. 
 Because if we spent all our cash accruals only for capex, then we need the further amount for 
working capital as well. So that's why we thought t hat without the having further borrowing or 
additional borrowing, we should go ahead with this project if we raise some fund from the 
market. So that was discussed in the Board, actuall y. 
Rahul Agarwal: Okay. Got it. So obviously, my sense is working cap ital is  you have done a great job over years 
on the working capital side. So we're still trying to get it down further. My sense is this INR2,000 
crores obviously also have a growth angle to it. An y sense, could you like to give some direction 
in terms of where most of this capital will get use d for? 
Rajeev Gupta: As you said, that we have  for the current year, we  have the plan for Sanand itself is close to 
Yes, Rahul ji. 
Rahul Agarwal: Sir, you were asking the question for, where will t he growth capex be used for? That is where 
the line got disconnected. 
Rajeev Gupta: Yes. So this fund will be fully utilized for the Sa nand project mainly so that we will be having 
sufficient internal accrual to fund the additional working capital requirement for the '26-'27 and 
'25-'26. 
Rahul Agarwal: Okay. Fine, sir. Second question was on the quarter  itself. It seems like the Institutional sales 
and exports both have been weaker, while all the gr owth was driven by dealer sales, which is 
the channel sales. Could you help understand this b etter what exactly happened? My sense is...        
KEI Industries Limited 
  October 16, 2024 
Page 5 of 17  
 
Rajeev Gupta: You see  earlier also we are explaining that. It do es not matter to us whether export is increasing, 
retail is increasing, EHV is increasing. Matter to us is how we are utilizing the capacity. So if 
the retail is pushing more in this quarter, so we h ave sold there. So ultimately, we need to utilize 
the capacity. So accordingly, our sale has already improved 17%. A little bit impact on the 
EBITDA margin, mainly because of, as we were earlie r explaining that, if the copper or 
aluminium prices get fluctuated, so in 1 particular  quarter, it get increased or decreased, which 
will be adjusted in the another subsequent quarter.  
 So if you compare the last quarter, wherein the ra w material consumption was lesser by close to 
1%, the same get adjusted in the same  this financi al year. So once it is averaged out, if you 
compare the 6-month results, it is already averaged  out. So there is no impact on 6 months or 
the full year balance sheet. 
Rahul Agarwal: So what it means is the margin which is  whatever i t is... 
Rajeev Gupta: For the full year, as Anil ji has already guided th at our 17% growth will be there because we 
have the capacity to maintain that kind of growth. And EBITDA margin will also be there as we 
have earlier guided 10.5% to 11%. 
Anil Gupta: We have already in H1, in 6 months, our EBITDA marg in is at 10.88% if we look at the total 
EBITDA margin of April to September. 
Rahul Agarwal: Got it, sir. And lastly, one clarification on the v olume growth for cable and wires. My sense is 
last quarter, we did 18%. You said first half, we d id 14%. The 2Q volume growth looks lower. 
Any reason for that, please? 
Anil Gupta: Because some of the materials could not be dispatch ed and  in exports as well as the EHV. So 
the finished goods inventory has increased. So it l ed to a little lesser sale. That's why it is showin g 
lesser metal consumption in the sale. 
Rajeev Gupta: But Rahul ji, it will always be happening actually in quarter-to-quarter. As I said that on an 
average basis, we will be growing at a 17% CAGR. So  quarter-to-quarter, maybe up or down. 
But for a full year basis or half yearly or 9-month  basis, on the basis of the accumulated sales, 
we will be growing at a 17% CAGR. 
Rahul Agarwal:                     Perfect sir and the understand that, thank you so much for answering the questions . 
Moderator: Thank you.  The next question is from the line of Nikunj Gala f rom Sundaram AMC. Please go 
ahead.  
Nikunj Gala:  Good afternoon sir. Thanks for giving opportunity.  Sir just on the QIP front, when we announced 
this Greenfield capex and at that point of time the  requirement was INR2,000 crores. Even at 
that point of time we were envisaging the increment al working capital requirement of the 
INR600 crores for the next 2 years. Considering the  cash flow which we will be generating, still 
we will be having that kind of a surplus then what' s the need to raise INR2,000 crores at this        
KEI Industries Limited 
  October 16, 2024 
Page 6 of 17  
 
point of time because the same situation was there 1 year ago when we announced this 
Greenfield capex also? 
Rajeev Gupta: At that time the Brownfield capex was not there to maintain the current year capacity addition 
and to maintain the sales growth of 17% in the curr ent financial year. We need to go with the 
Brownfield capex where we had already invested more  than INR250 crores last year and in the 
current first half. So that money has also gone. So  that was not earlier planned. Earlier was the 
planning only for the Greenfield capex.  
And now because of the expenditure going on and if earlier we were having the debt-free 
company. So now if we are going ahead with the same  plan then the debt will be there for term 
loan at least for INR600 crores and additional work ing capital loan for next financial year and 
in financial year '26-'27 will also be there. So wh en the term loan and the working capital loan 
will be there then the cash accrual will not be ava ilable for the future capex which is beyond '26-
'27. 
Nikunj Gala:  Okay. So out of this INR2,000 crores there will be  additional capex requirement for which we 
are raising this INR2,000 crores like apart from th e Sanand, is there a further plan? 
Rajeev Gupta: Further  every year we need to spend around INR500 crores to INR700 crores in future so that  
maintain the growth. Because if we need to maintain  a growth of 17% plus we need to have the 
capacity in place well in advance because it takes almost 2 years before because we started this 
project last year and it will take two full years t o execute or to reach at a level of sale. 
Nikunj Gala:  Okay sure. And just one clarification on the TV in terview which MD gave in the morning, is 
there the comment which was made that after a few m onths, we will  again we'll be looking for 
a buyback of the shares? So that point was not clea r? 
Anil Gupta: No, actually the anchor was asking that will you be  buying the shares or will you increase your 
promoters holding by acquiring shares from the mark et. I said we will  after a few months, we 
will look at it that was  so the  actually the ques tion was different. So we just said that we'll look  
at it. That's all. 
Nikunj Gala:  Okay because we are raising money and then again b uying back the shares that doesn't reconcile? 
Anil Gupta: No. There is no question of buying back the shares.  They were saying that will you increase the 
promoter holding. That was the question. 
Nikunj Gala:  Okay. Thanks a lot for the clarification. All the best. 
Moderator:  Thank you. The next question is from the line of N ithin Arora from Axis Mutual Fund. Please 
go ahead. 
Nithin Arora:  Hi. Thank you sir for the opportunity. Just moving  away from this QIP thing to the business 
side. Can you talk about how's the demand, overall demand right now given that you have such 
high visibility, you're putting Greenfield also. An d I think you also talked about that we want to        
KEI Industries Limited 
  October 16, 2024 
Page 7 of 17  
 
increase even the Brownfield capex where that QIP c omes into play. So has anything again 
materially changed?  
I mean, whatever the growth the industry is seeing is pretty strong. That's what the sense you 
gave it last quarter in the con call as well, but h as materially something changing where you're 
seeing some more levers coming in and that's the re ason suddenly it's upsizing the capex? Just 
your take on that? 
Rajeev Gupta: No. Capex we are doing which we have already planne d for it. Only changing, instead of taking 
the debt now we will not be taking the debt, that i s the only difference. So that whatever capacity 
will be in place by '26. So in '26-'27, when the fu ll capacity will be available to sale, the working 
capital will be required. So if we have already tak en the loan and we have adjusted our cash 
accrual to the capex then the working capital loan will also be there at that time. So we thought 
that instead of taking the loan and addition of the  loan in future if we go with this kind of 
fundraising so then the debt will not be there in t he books. So interest costs will also be not there 
in the books as it was not in the last year balance  sheet. 
So that was the main  so when the cash accrual will  be available, we can start investing in the 
new plant which will be available capacity for '27- '28 onward because this plant will be 
generating close to INR5,000 crores capacity which will be utilized only by '26-'27 or '27-'28 
max. So the 17%, 18% growth rate is there and the m arket is available for that. Our order book 
position is evidence for that.  
The domestic cable power book is already INR2,368 c rores and export order is INR575 crores 
and the retail is increasing. So if the retail is a lso increasing and the domestic demand, 
institutional side is also  order book is strong. O nly we are lacking behind with the capacity 
actually. 
Nithin Arora:  So that's what my question was that can you elabor ate a little bit more quantitatively, let's say, 
the end market? Obviously you said 17% is something  we are looking on a growth side, but 
sector-wise because there is a thought process that  after the election, the things have really 
slowed down, whether it's the railways, whether it' s the other retail markets. So just we wanted 
your take how you are looking at different pockets of the market number one which you always 
talk about. So if you can talk in a little detail, segment, sector-wise if you are seeing any 
slowdown on how you're seeing the market? 
And second, I think what is your guardrail in terms  of net debt-to-equity where you are more 
comfortable as a promoter because see the point is not that you are raising fund is an issue. The 
point is the surprise element because we were think ing that you will not eventually  the cash 
flow will be there and not requirements. So if you can throw some light what is as a promoter, 
as a company we are comfortable with that?  
So as an analyst we can assume that if you do beyon d that much capex, eventually that has to 
come from the promoter doing QIP and all. So just y our take on the net debt-to-equity side, your 
guardrail?        
KEI Industries Limited 
  October 16, 2024 
Page 8 of 17  
 
Rajeev Gupta: Yes. Before answering by Anil ji for the market dem and, I will clarify that we want to run a 
debt-free company. As we have earlier spoken for th at also. So the same guidance for future also 
because we want to run the debt-free company, that' s why this fundraising option came into the 
picture. Now for the demand side Anil ji will updat e. 
Anil Gupta: See from demand side, the solar renewable energy is  having substantial demand, solar and wind 
both. Secondly now the transmission sector also has  a substantial demand coming up with the  I 
think Government of India had announced almost INR9  lakh crores worth of transmission 
evacuation plan for the next 6 years. So those proj ects are coming up.  
Then other sectors like a lot of thermal power proj ects and this  pump storage projects are there 
for which the cable demand is there. A lot of tunne ls  highways tunnelling and railways 
tunnelling projects are there. Data centres are ver y strong. So demand scenario is strong and that 
is the reason that every company is showing good gr owth in the sales. 
Nithin Arora:  Got it. It’s clear. Thank you very much. I will co me back in the queue. Thanks a lot. 
Moderator:  Thank you. The next question is from the line of A chal Lohade from Nuvama Institutional 
Equities. 
Achal Lohade: Good afternoon sir, thank you for the opportunity, Sir, two questions. One is any particular 
reason for the EHV weakness? Is it entirely for the  exports? Or how do we look at this particular 
sub-segment in terms of FY25 and then FY27 onwards,  given the new capacity? 
Anil Gupta: See, sometimes this is a segment which is normally only the government utilities in the 
transmission sector, they buy. So a little bit of v ariation in the demand, in the tender process, in 
the clearances at site for the execution are always  there. Order book is there. But projects are not 
executable because of the ROW issues and non-cleara nces. Overall, in the full year period, it 
will improve. But sometimes, even 2 years back also , we saw a similar situation. And this year 
also, we are seeing similar situations. But overall  period, it will improve. 
Achal Lohade: Got it. And just with respect to your comments on v arious sectors, renewable, wind, 
transmission, etc. Is it possible to get a sense in  terms of our mix, KEI's mix in terms of these 
sectors? Possible to have that kind of a split at t his point in time? 
Anil Gupta: No, at this moment, it is not possible. But we can work it out tentatively. But it's very difficult 
to extract this so much of data because we are sell ing to dealers, EPC contractors. And 
sometimes we are not record it in our system, that for which sector this cable is going. 
Achal Lohade: Understood. And just one more question. In terms of  margins, do they vary basis whether the 
sale is B2G, B2B or distributor through? 
Anil Gupta: See, margins are sometimes 1% here and there. I thi nk margins are similar in nature. 
Achal Lohade: Even for export?        
KEI Industries Limited 
  October 16, 2024 
Page 9 of 17  
 
Rajeev Gupta: For the full year margin, you will see the similar kind of things, which were there last year. You 
will not see any surprises on that, actually. 
Anil Gupta: Our margins are as per guidance in the full six mon ths of the April to September, first half. 
Achal Lohade: No, I was not asking for that, sir. I was just tryi ng to understand in terms of whether the margins 
vary, whether it is domestic or export or within do mestic, whether it is B2G, B2B or distributor 
sale? 
Rajeev Gupta: A little bit, 0.5% margin is here and there in expo rt and dealer distributor versus the domestic 
institution. 
Achal Lohade: Got it. And just one last question, if I may. With respect to working capital, how do you see that 
evolving over the next couple of quarters? Would th is normalize immediately or it will take a 
couple of quarters to normalize? 
Rajeev Gupta: Earlier, we had guided that our receivables will go  down. So last year, our receivable was 2.25 
months. Before that, it was 2.4 months. So, in this  financial year, it will come down to 2.1 
months. Inventory will be close to 2.25 months. In this first half, the inventory is a little bit 
higher, mainly because of the capacity increase. So , the holding will also be increased for that 
period actually. But by the third quarter, it will again be for 2.25 months, which right now is 2.4 
months. 
Moderator: The next question is from the line of Manoj Gori fr om Equirus Capital. Please go ahead 
Manoj Gori: Thanks for the opportunity.  Sir, a couple of questions. In the opening remarks,  Anil ji highlighted 
like we used EHV capacity for HT. Can we throw some  light because if you look at EHV margins 
would be relatively better versus HT.? So, what mad e us take this decision to actually make 
more HT than EHV? Was it lower demand for EHV or an ything in specific? 
Anil Gupta: I have already mentioned that it is the inconsisten cy in execution of the orders because of the 
ROW issues and non-clearances from the utilities fo r executing the contract. That is why the 
EHV sale has been impacted. It will normalize. It i s a pattern of this kind of work because of the 
heavy rains, road cutting permissions were not ther e anywhere in the country. So how do you 
execute a project? We can't manufacture and dump th e cable at site. So, these are the issues. On 
a full year basis, it will normalize. So, when you are not manufacturing in EHV cable on a CCV 
line, we have to utilize that capacity to produce s imilar identical products, for which it is capable 
of. These capacities are always alternate. They can  be used for any type of cable. 
Rajeev Gupta: Manoj ji, last year, in the second quarter, we sold  high-tension power cable at INR271 crores. 
In the current quarter, it went to INR431 crores ma inly because we utilized that capacity of EHV. 
With regards to the differential margin, there is 4 % to 5% margin differential. But on a INR70 
crores, INR80 crores additional or INR100 crores ad ditional sales for HT, it may be INR3 crores, 
INR4 crores margin, that's it. But it will not be m ore.        
KEI Industries Limited 
  October 16, 2024 
Page 10  of 17  
 
Manoj Gori: Correct, sir. Sir, my second question would be on t he fundraising part. Sorry to follow up on 
that. If we look at the working capital requirement , probably, as you rightly highlighted, it would 
be close to around INR600 crores. Even if we adjust  that, we should be doing cash flow from 
operations of close to around INR1,200 crores to IN R1,300 crores during FY25 and FY26. And 
we are planning to raise somewhere around INR2,000 crores. Any other plans other than the 
greenfield and brownfield capacity additions that w e are looking at currently? 
Rajeev Gupta: See, next year, our cash outflow for the Sanand pro ject itself is INR600 crores. And our cash 
profit is practically close to INR700 crores to INR 750 crores. So, there is no room for additional 
working capital requirements. So that's why once we  have assessed now because now our project 
is almost in the halfway for completion, and within  7 to 8 months, we will start selling from 
there, so then we would require additional working capital also. 
Moderator:  The next question is from the line of Pulkit Patni  from Goldman Sachs. Please go ahead. 
Pulkit Patni: Sir, just one question. Historically, you've said t hat you want to, over time, reduce the EPC 
business. And it's been very volatile. So, could yo u give us a sense of how should we be looking 
at our EPC business going forward? Because the reve nue fluctuation happens to be pretty wide 
in that particular segment. 
Rajeev Gupta: In EPC, we are already reducing the sale quarter. A nd in the current year, our EPC will not be 
more than 5%, 6% sales. 
Anil Gupta: We have already substantially cut down the EPC busi ness. 
Pulkit Patni: No, sir, I understood that. But because there's a l ot of quarterly volatility, so just wanted to 
understand that like... 
Anil Gupta: Basically, the quarterly volatility is there becaus e of the site situation  heavy rains were there, 
and there was no ROW permissions anywhere, wherever  the projects are going on. So  and these 
are all projects are executed in the open areas bec ause our distribution strengthening projects. 
So that is why the sale has also gone down. And we are not taking  we have to take one order in 
a year to maintain a section of staff. 
Otherwise, the old outstanding’s also, we had to ma intain the projects which we have done in 
the past as a warranty and also recover the payment s from the old projects. So we have to 
maintain a certain amount of staff. To keep them en gaged, we just take one order in a year. 
Rajeev Gupta: Normally close to INR250 crores to INR300 crores wi ll be the sale for a year from the EPC 
division. And slowly, slowly, it will get away once   you see, our collection has already reduced. 
Earlier it was INR340 crores debt. So now it has al ready reduced less than INR250 crores of 
debtor level from EPC. So slowly, slowly, the busin ess is going down and the debtor level is 
also going down. 
Pulkit Patni:                          Okay, this is useful thankyou sir.        
KEI Industries Limited 
  October 16, 2024 
Page 11  of 17  
 
Moderator: The next question is from the line of Keyur Pandya from ICICI Prudential Life Insurance 
Co.Limited. Please go ahead. 
Keyur Pandya: Two questions. First, on the capacity side. So, thi s probably INR1,000 crores potential revenue 
capacity in Diwali would help us grow in, say, FY ' 25. So what will drive  do we have enough 
capacity to grow in FY '26? That is first question.  And second question from the balance sheet 
perspective, you mentioned that you would want to k eep your balance sheet debt-free. If I just 
take ballpark 15%, 16% kind of growth, say, for the  next two, three years. 
Annually INR1,500 crores to INR1,700 crores kind of  incremental sales would be required. And 
that will require incremental capex plus working ca pital of around INR800 crores, INR900 
crores, considering  capex plus working capital. So  now is it fair that  if the annual requirement 
of capital is INR800 crores, INR900 crores, till th at time, you won't raise further funds going 
ahead also? 
Basically, when your OCF or operating cash flow mee ts your capex plus working capital 
requirement, there won't be any fund raise? 
Rajeev Gupta: No. This fundraise, we have already explained that considering in mind to be a debt-free 
company. So out of the total fundraise, we will spe nd major amount only on the Sanand project. 
With respect to the growth of 17% plus growth, we h ave the capacity for current year as well as 
we have the capacity for the next financial year. B y that time, the next financial year, the Sanand 
project will be fully operational. 
So part growth will be coming from the Sanand, and part growth will be coming from the balance 
capacity for the current financial year. 
Keyur Pandya:  Just clarification. So next year's growth, part of  it depends on the, say, commissioning of the 
Sanand plant, correct? And that commission... 
Rajeev Gupta: Sir, irrespective of anything, we will be growing a t 17% plus because that kind of capacity we 
have already created in our existing divisions. For  the Sanand project, for your consumption, we 
have taken only additional growth of INR900 crores that's it from the whole project for the next 
financial year. So that will be coming from the exi sting capacity, which we have already 
implemented. 
So that's why we are quite confident that we will b e growing 17% plus for next financial year 
also. 
Moderator: The next question is from the line of Nikhil Kale f rom Invesco. Please go ahead. 
Nikhil Kale: thankyou  Sir, just one clarification I had. So you talked ab out like project capex for FY '25 and 
'26 in Sanand. Can you just help us understand what  is the total capex, right? At a company 
level, what is the total capex that you're planning  for this year and next year, including 
maintenance capex that you kind of...        
KEI Industries Limited 
  October 16, 2024 
Page 12  of 17  
 
Rajeev Gupta: This year will be  total capex will be close to INR 1,100 crores plus. And next year, the total 
capex will be INR600 crores to INR700 crores, inclu ding the maintenance capex. 
Nikhil Kale: And just for my understanding, steady state, I mean , what  how should we look at maintenance 
capex? Is it like  as a percentage of sales, typica lly, how much...? 
Rajeev Gupta: So it is  maintenance capex is close to INR50 crore s in our existing locations... 
Moderator: The next question is from the line of Harshit Kapad ia from Elara Capital. 
Harshit Kapadia: thanks for the opportunity, Congratulations for a v ery strong results again. Just wanted to clarify  
on the Sanand plant, we are spending INR900 crores,  and that will only be for the cables 
manufacturing. No wires would be manufactured, righ t? And secondly, within cables, what 
proportion would be EHV, LT and HT? Could you give us some colour on that, sir? 
Anil Gupta: See, EHV and HT have similar plant and machinery an d they are always replaceable in terms of 
capacities. So we have not  for any segment, of the  reason, we have never kept any of our 
capacity idle. So secondly, LT cable  I think later  on, we can give you the  you can explain. 
Rajeev Gupta: Yes. For the Sanand, that total capacity will be cl ose to INR5,000 crores. Out of that, close to 
INR1,200 crores to INR1,300 crores belonging to the  extra-high voltage, close to INR1,500 
crores belonging to the high-tension power cable an d balance will be for low-tension power 
cable. 
Harshit Kapadia: And HT and EHV is fungible. So that will be INR2,70 0 crores if, let's say, if you want to do 
completely HT or complete EHV on demand? 
Rajeev Gupta: No, no. It's only one way around. From HT, we canno t make EHV. But from EHV, we can make 
HT. So basically, EHV we will be limiting to INR1,2 00 crores to INR1,300 crores, but HT 
maybe INR1,500 crores to INR3,000 crores. 
Moderator: The next question is from the line of Shrinidhi Kar lekar from HSBC. Sir, the participant has left 
the queue. I'll just reconnect. Yes. May I request Rohit from Nvest Analytics Advisory LLP to 
go ahead. 
Rohit: Sir, our year-on-year margin has been impacted. Cou ld you please provide a specific reason for 
this? Are we seeing increases…? 
Rajeev Gupta: The specific reason is because of the volatility of  the metal prices, raw material consumption 
increased by 0.5% to 1%, which was less in the last  quarter. So because of that, if it is averaged 
out, then it is common. So for 6 months, there is n o impact. From quarter-to-quarter, it is 
impacted. 
Moderator: The next question is from the line of Arshia Khosla  from BOB Capital Markets.        
KEI Industries Limited 
  October 16, 2024 
Page 13  of 17  
 
Arshia Khosla: Sir, I just wanted to understand on the export side . So in the previous quarter, our export declined 
because of some logistical issue at the customer en d. So any  if you could just highlight 
something for this quarter, have they been resolved  or...? 
Rajeev Gupta: Export earlier, we have guided to maintain for 12% to 13% for the full year level. Already we 
are having 11% export contribution in the first hal f. So we will be maintaining 12% to 13% 
depending on the order we are having. And it does n ot impact our overall sales whether export 
is higher or retail is higher or the domestic insti tution is higher as long as we are growing overall 
17% plus, so we are utilizing our capacity. 
Arshia Khosla: Okay. And sir, I just wanted the order book bifurca tion. 
Rajeev Gupta: Pardon, you want the pending order? 
Arshia Khosla: Yes, the order book bifurcation, the pending order book. 
Rajeev Gupta: Yes. So pending order is EPC division order book is  INR603 crores. Extra-high voltage power 
cable order book is INR300 crores, and cable from d omestic institution order book is INR2,368 
crores, and export cable order is INR575 crores. So , put together, INR3,847 crores. And out of  
and apart from this, we are having L1 INR186 crores  order for extra-high voltage power cable. 
So order book is very strong. 
Arshia Khosla: Yes. Can you please the L1 number? 
Moderator: I'm sorry to interrupt. Ma’am, can you please re-jo in the queue? The next question is from the 
line of Nikhil Kale from Invesco. 
Nikhil Kale: Just one follow-up. So since you're looking at like  the next phase of growth when you're looking 
at the QIP fundraise beyond like FY'27 and FY'28, j ust wanted to understand that this next phase 
that you're kind of envisaging, would it be more li ke a greenfield or  would it be more of a 
greenfield or is it brownfield wherein you have San and  space in Sanand and it will be kind of 
expansion there? 
Rajeev Gupta: It will be both actually because once this plant wi ll be operational, then automatically there is a 
lot of scope to improve the capacity over there by balancing of equipment. That is our past 
experience. So we will do that. And apart from this , we will go ahead with the future capex for 
the greenfield also. We have already bought land in  Baroda, which we are in the process to 
acquiring. And within 6 to 8 months' time, we will be having a sufficient land for the further 
growth. 
Moderator: The next question is from the line of Nithin Arora from Axis Mutual Fund. 
Nithin Arora: Sorry, sir, just one follow-up. As you stated that we always want to be now a debt-free company, 
the cycle of capex will continue. So, I just wanted  to know your thoughts that if your capex, 
given the first round will happen now, the brownfie ld and the greenfield, both. And eventually 
we keep spending INR400 crores to INR500 crores unt il we decide after 3, 4 years another 
greenfield. So now when you've done your math, how one should look this debt-free argument?         
KEI Industries Limited 
  October 16, 2024 
Page 14  of 17  
 
Because when you put your new capex, let's say, gre enfield comes after 2 years where you decide 
to put another one. Now we are confident that this will remain as a debt-free? Or that time also 
eventually, the working capital will always remain,  right? That is the nature of the business. And 
that time also, you will say that, okay, suddenly, we didn't envisage the working capital that 
time, but now the working capital also needs to be done. So, this argument which you're giving 
of, debt-free, what we wanted to know, this is some thing even a new greenfield announced after 
2 years or 3 years that we are sticking to. 
Rajeev Gupta: We have calculated the projections for next 5 to 7 years. Accordingly, we have taken this 
decision. So we will not require for any further am ount either from the debt or from the 
fundraising for the future growth of 17% plus. 
Moderator: The next question is from the line of Sandeep Jain from Baroda BNP Paribas MF. 
Sandeep Jain: Yes. Partly has been answered in the previous quest ion of Nithin. Just one clarification. In terms 
of if I look at the debt raising part, right, FY'24 , we have done somewhere around INR800 crores 
of free cash flow. So just wanted to understand the  thought process that even at a 17% growth 
and even if we don't take any equity raise now, wha tever the debt we required in FY'25 or FY'26 
that can be paid off by FY'27, right, because of th e cash flow generation ability? 
Rajeev Gupta: No, then the growth will be sacrificed. If we take the debt and we use the cash accrual for the 
debt repayment, then from '27-'28 onwards, from whe re we will invest? 
Sandeep Jain: No, we can raise at that point of time. That is the  only point which I'm trying to understand. 
Rajeev Gupta: So if we would like to defer that, so that we can d efer, then that will be along with the risk 
attached for the interest and repayment also, becau se if INR600 crores for term loan and the 
INR600 crores for working capital, so the interest cost will be there, the repayment of term loan 
will be there. So it will impact the future investm ent. 
Sandeep Jain: So currently, we have a net debt of INR69 crores, I NR70-odd crores kind of thing if I remove 
the acceptance, right? 
Rajeev Gupta: Yes. You see, acceptance is basically the interest- bearing because from Hindalco, Vedanta or 
anywhere else, it has to be through the letter of c redit. Letter of credit is bearing the interest. So  
then the interest cost will be there. 
Sandeep Jain: Okay. No, that I understood. 
Rajeev Gupta: If we are buying through the cash, so then also the re will not be any interest cost. 
Sandeep Jain: No, that I understood. That will always be there wh ether you raise the fund or don't raise the 
fund, the acceptance will bear the interest. That w ill be the pack and parcel of the business, right? 
You cannot just substitute that. 
Rajeev Gupta: Acceptance in the last 2 years  in last 2 to 3 year s  3, 4 years before, acceptances was INR900 
crores. It has reduced substantially. Only in the c urrent year, it has again increased a little bit.        
KEI Industries Limited 
  October 16, 2024 
Page 15  of 17  
 
But otherwise, acceptances were very less to only I NR200 crores only for import. For the 
domestic purchase, we were using the cash because w e were having the cash in our books. 
Sandeep Jain: So as a management, when you take a debt, you inclu de the acceptance also that acceptance also 
be 0? 
Rajeev Gupta: Yes. So the INR426 crores debt, that is the net deb t, including acceptances. In my presentation, 
also, we have shown those numbers. 
Sandeep Jain: Okay. Thanks. 
Moderator: Thank you. The next question is from the line of Ke yur Pandya from ICICI Prudential Life 
Insurance Co. Limited. Please go ahead.  
Keyur Pandya: Thanks for the opportunity again.  Sorry to harping again on the fundraise. Just  the question is 
being asked because the promoter holding is already  below 40%. So, the thought is that the 
working capital requirement that you mentioned for the incremental INR5,000 crores of sales, 
however, that will be gradual. So every year probab ly incremental INR250 crores to INR300 
crores kind of working capital requirement would be  there based on the 15%, 17% growth 
number. 
 I mean, that is not onetime requirement will come g radually, whereas the fundraise would be 
onetime front loaded and that could impact the basi cally ROCE and balance sheet. So just 
wanted to understand, just like previous participan ts suggested, can we do it at the time when it 
is actually required? That is first. And second, ju st on the export side, are we seeing any 
structural challenge since export is low for you as  well as for other players for the last few 
months? So just more color on the export. 
Anil Gupta: No. I think there is no structural problem in the e xports. So  yes, it is taking time to pick up. But 
I don't see any problem going forward in the growth  of exports. 
Rajeev Gupta: Sir, with respect to fundraise, we have already exp lained the situation why we want to raise the 
fund so that we will be having the capex funded thr ough this fundraise. And whatever cash 
accrual will be there, will be available for the wo rking capital for next financial year. 
Keyur Pandya: Okay. Thank you. 
Moderator: Thank you. The next question is from the line of Am ber Singhania from Nippon India AMC. 
Please go ahead. 
Amber Singhania: Yes. Just 1 clarification I'm looking for. You ment ioned roughly around INR2,000 crores kind 
of capex in Sanand plant, which will give you INR5, 000 crores kind of revenues. That works 
out to be around 2.5x asset turn. Just wanted to un der isn't it too low compared to what we are 
already enjoying or what we are already delivering as well as what we are seeing in other 
industry players are achieving? Isn't it too low on  that?        
KEI Industries Limited 
  October 16, 2024 
Page 16  of 17  
 
Rajeev Gupta: It is mainly because of the extra-high voltage meas ure capacity we are going to add over there, 
wherein heavy structure or building, heavy machines  and heavy testing equipment and heavy 
cranes are there. So only in extra-high voltage pow er cable, the asset turn is less than 1:2. But 
otherwise, normally it is practically 1:3.5 nowaday s. 
Anil Gupta: Because nowadays, the cost of creating assets as co mpared to what we have previously created 
has substantially changed over the last  whatever t he factories we've built up 5 years back, now 
the construction cost has doubled. Plant and machin ery has almost gone up, almost doubled. So  
but after once the factory is built, there are alwa ys scope to improve the production and 
productivity by adding some balancing machines. But  that happens only once the production 
starts. 
Amber Singhania: Okay. Because you're mentioning that even after tha t INR500 crores to INR700 crores kind of 
run rate will continue. What I understand is curren t capacity is sufficient for '25 and '26. The 
Sanand capacity will suffice your '27, '28. Despite  that, we will be doing another INR500 crores 
each year on '27 and '28 for the Q3. So just wanted  to understand, is the asking rate going 
forward, apart from Sanand factory as well is... 
Rajeev Gupta: Apart from Sanand factory, whatever we will stand, we will spend for the new facility, which 
will take another 2 years to implement. Because we need to spend 2 years before, then only we 
will have the capacity in place after 2 years. So w hatever we will spend in '26, '27 and '27, '28, 
the capacity will be available in '28, '29. So that 's why we always prepare a plan for the next 5 
financial years. That's how we are doing a 17% kind  of growth for the each 5 years. 
Amber Singhania: And sir, I know it is slightly premature, but can y ou also highlight the new capacity which we 
are planning after Sanand plant? That would be in t he line of EHV side only or it will be... 
Rajeev Gupta: No. It will be for low voltage and medium voltage. It will not be EHV. So there, the cost of the 
project will not be that high debt that is there in  Sanand. 
Amber Singhania: Okay. Thank you. 
Moderator: Thank you. The next question is from the line of Ra man Kv from Sequent Investments. Please 
go ahead. Thank you. The next question is from the line of Sukant Garg from Equible Research 
Private Limited. Please go ahead. 
Sukant Garg:  So most of my questions have been already answered . I just wanted to know one thing that which 
are the major sectors that we are currently serving ? And if not the customers, exactly which 
sector is going to be the major focus in the next q uarter or the coming quarters? 
Anil Gupta: See  the focus sector will be energy sectors. Espec ially solar, wind or other power generation 
sectors, transmission and distribution sector in th e power and data centre. But this is just 
tentative. Our focus remains on every sector wherev er the demand is there, wherever  because 
we have channel partners. We have sales team everyw here. So whatever opportunities are there, 
all opportunities are tapped. It is not a question of that we just focus on  because we are        
KEI Industries Limited 
  October 16, 2024 
Page 17  of 17  
 
manufacturing cables for all sectors. But our focus   the major demand drivers will be solar, wind 
or energy sector, basically. 
Moderator: Thank you. Ladies and gentlemen, this will be the l ast question. That will be from the line of 
Vaibhav Jain. 
Vaibhav Jain:  Sir, just new to analysing your company and the bu siness. So I just wanted some clarification 
on channel finance and acceptances. What kind of de bt is this? What kind of cost of debt and 
what... 
Rajeev Gupta: In the channel finance, the cost is borne by the de aler itself, and we are giving them the cash 
discounts. In the case of acceptances, the interest  rate is close to 7% to 8% per annum. 
Vaibhav Jain: Okay, sir. Most of my other questions have been ans wered. 
Moderator: Thank you. As that was the last question. I'll now hand over the conference over to the 
management for closing comments. 
Anil Gupta: So thank you very much for having interaction with us on this conference call. If you still have 
any further questions, you can reach out to us. Tha nk you very much, and look forward to your 
working together. Thank you. 
Rajeev Gupta: Thank you very much. 
Moderator: Thank you. On behalf of Monarch Networth Capital, t hat concludes this conference. Thank you 
for joining us, and you may now disconnect your lin es. 

    Give the output in markdown format.
    
Assistant: