KEI Industries Eyes 17% Revenue Growth Powered By Brownfield Projects

KEI Industries Ltd. is set to expand its revenue at 16–17% in the financial year ending March 2025, banking on its brownfield expansion projects, according to Chairman and Managing Director Anil Gupta. 

Brownfield refers to the development or expansion of existing operations instead of starting new ones from scratch.

The power cable manufacturer made a solid start to FY25, posting a sharp 23.8% year-on-year growth. The company posted Rs 150 crore in net profit for the first quarter against Rs 121 crore in the same quarter last year. The company's revenue advanced by 15.7% YoY to Rs 2,060 crore.

"This year we expect to grow (revenue) by 16–17%, because we expect incremental growth to come in from the brownfield expansions which we have done last year and this year at Silvassa, Bhiwadi and Pathredi. So we expect that with our existing expansions, we expect to grow by 16 to 17% in the next four years," Gupta told NDTV Profit.

While the capital expenditure at the Chinchpada plant is now complete, he said, “regarding Sanand (plant), the construction work is in full swing and we expect the first phase of the project to be completed by either the end of March or in the first quarter of FY26. This year we expect to do an overall capex of Rs 700–750 crore in all our plants.”

He expects the company to have an Ebitda of 11% in the current fiscal.

KEI Industries has also ramped up efforts on customer penetration in the export market and Gupta assured of visible results soon. 

"For the full year, we expect to grow by around 35–40% in exports. The full year looks promising, because we have a very strong order book position and we are also improving our customer penetration in many countries," he said.