Friday, 11 February 2022

Kinetic Engineering reports 70% y-o-y jump in revenue in 9M FY22


Pune, 11th February 2022: The automobile industry is synonymous with the name Kinetic Engineering Limited (KEL) - a company spearheading a revolution in the automobile industry for over five decades. The company announced its financial results for Q3 FY22 today.

Q3 FY22 performance overview

       In the third quarter, the company’s revenue from operation for nine months ended 31st December 2021 increased 70% compared to the corresponding nine months period ended 31st December 2020.

       Total sales crossed Rs. 90.53 crores, 4% more than the 12 months of the last financial year.

       EBITDA has increased from Rs. 2.44 crores to Rs. 10.8 crores for the same nine months period.

       4th consecutive quarter with a net profit of Rs.13 lacs for the quarter.

       Net profit of Rs. 91 lacs for the nine months against a loss of Rs. 7.49 crores in the previous year.

Continuing the profitability trend, KEL reported fourth consecutive quarter of net profit. It reported a net profit of Rs 91 lacs for the nine months ended Dec 2021 as against a net loss of Rs. 7.49 lacs for the corresponding period of the last financial year. Its revenue has already crossed Rs. 90.5 crores, which was 4% higher than the 12 months of the last financial year. The company continues to maintain healthy EBDITA, which reached Rs. 10.8 crores as against Rs. 2.44 crores for the corresponding period of the last financial year. Going by the current order book and momentum, the company is confident of crossing pre-covid levels in the current financial year. This is in spite of continued pressure on margins due to the increase in commodity prices and subdued demand from automotive customers amid the global chip shortage.

Mr. Ajinkya Firodia, MD, Kinetic Engineering Limited, said, “We are in the right direction to achieve our vision. I am pleased that our 100% made-in-India electric axles have received a positive response from our customers. The quarter's performance was in line with our expectations, and we are confident to begin the next year on a promising note. Our focus will be on EVs in the coming days, wherein we will be extensively making two-and three-wheeler chassis and complete gearboxes. This quarter, we have won a new order from our existing customer, Carraro, with a business potential of 7-8 crores per annum and have commenced supplies. KEL continues to work with its customers to overcome the ongoing challenges and grow profitably.”

New products developed for electric mobility have received a good response in the market. KEL continues to add new products into this space. It has recently finalized orders for the development of Chassis and other parts for electric moped manufacturers and bagged an order for a gearbox for a leading 3-wheeler manufacturer.

About Kinetic Engineering Limited

Kinetic Engineering Limited is the flagship company of the Kinetic Group with five decades of manufacturing experience. The Pune based company, which has been in the industry for over five decades, has been a pioneer in the automotive industry. The company’s manufacturing unit in Ahmednagar is spread over 70 acres and has over 800 employees, 32 manufacturing sheds and more than 400 machines. All of KEL’s products are IATF 16949 certified. The company, which is headquartered in Pune manufactures about 100 different auto components and stands by its vision of ‘Kinetic in every automobile’. KEL’s esteemed customer list includes Renault, American Axle, TATA Motors, Mahindra & Mahindra, Ashok Leyland, Magna Powertrain, Bombardier Recreational products, and many others. It has over 1000 employees at its large manufacturing plant in Ahmednagar, while its corporate office is based in Chinchwad, Pune. Kinetic Engineering Limited stock is quoted on the BSE: 500240.

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