Kinetic Reports Robust Results, 105% Jump in EBDITA in Q4 FY22

 

Revenue at 124 crs up by 43% YoY, EBDITA of Rs. 14.59 crs at 11.7% of Revenue

Net profit of Rs. 154 lacs compared to loss of Rs 611 lacs last year 

Pune, May 25, 2022: Kinetic Engineering Ltd, which revolutionized the two-wheeler industry and transformed itself into auto component manufacturer, declared its stellar financial results for Q4 FY22 today.

The company reported full year revenue of Rs 124.35 crs, up from Rs 87.03 crs in the previous financial year, a jump of 43%. Its profitability also has significantly improved with a 106% increase in EBDITA at Rs 14.59 crs compared to Rs. 7.11 crs last year. The company also completed its turn around with four straight quarters of profit and a cumulative net profit of Rs 154 lacs for the year 2021-22 against a loss of Rs 611 lacs in the previous year. This is the first full year of net profit after nearly 15 years of turnaround struggles.

The quarterly results continued to impress:  KEL reported a QoQ increase of 14% in Revenue from Operations at Rs 33.82 crs in Q4 and a net profit for the quarter at Rs 63 lacs compared to Rs 13 lacs in the previous quarter. This is in spite of continued extreme volatility and surge in commodity prices. The profitability trend for KEL is now sustainable with the strategy implemented by KEL and also its clear focus on EV market and addressing the future trends in the EV sector.

Mr Ajinkya Firodia, MD, Kinetic Engineering Ltd, said, “This is a historic year for Kinetic and a turning point which indicates bright days ahead for the company. We are pleased with the overall performance of the company in the current financial year. The strategy being pursued by the company has started giving positive results and we strongly believe that the company will maintain sustained profitability trend despite extremely volatile commodity prices, which pose a serious challenge. We will continue to pursue opportunities in the EV segment while maintaining and growing the conventional automotive business. We continue to have an export focus with nearly 50% of our business coming from exports. The company has emerged stronger over the years and I am sure will achieve greater heights in the years to come, with exciting new opportunities.”

With the implementation of new strategies KEL’s focus shall be on-

1)     Improve EBITDA: company is undertaking various cost cutting initiatives that include implementation of a 1.8 MW solar plant; and converting its oil based furnaces to electric, and various such activities that shall drive profitability to higher levels.

2)     EV focus: the company shall develop various chassis, axles and gearboxes for commercial vehicles & two-wheelers in EV segment. It will continue to explore opportunities to foray aggressively into the future.

3)     Export dominance: KEL currently is one of the few companies that enjoys an export dominance– with 50% of its revenues coming from there.  KEL shall continue this focus aggressively.

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 a large manufacturing plant in Ahmednagar, while its corporate office is based in Chinchwad, Pune. Kinetic Engineering Limited stock is quoted on the BSE: 500240.