Kinetic Engineering’s Profitability Story Continues: Company Reports a 485% growth in net profit in H1 FY 24 with growing revenues
Profit increases by 485% from INR 54 Lakh in H1 FY23 to INR 316 Lakh in H1 FY24
Highlights for H1 - FY24
- Standalone EBITDA grew to INR 961 Lakhs for H1 FY24 as against INR 727 Lakhs for H1 last year
- ·Announces extension of KEL’s biggest programme, the supply of driveline products to American Axle, securing nearly INR 300 Cr revenue over the next seven years
- Company has commenced supply of various parts, including fully painted & CED coated frames, swing arms & main stands amongst others, for E-Luna, the new-age, electric iteration of the iconic moped; ramping up production steeply to cater to the high consumer demand, from 40,000 annually to 100,000 in the coming months
- KEL’s new EV initiative has launched and secured orders for transmission assemblies for e-rickshaws and e-autos up to 5 kw
- KEL inaugurated new world-class facility in Ahmednagar to produce high-quality gears and shafts for its premium customer, Mahindra & Mahindra; dedicated plant consists of exclusive shed with epoxy flooring, exclusive CNC machines
Mumbai, November 9, 2023: Kinetic Engineering Limited (KEL), India’s leading auto component manufacturer, has reported a nearly five-fold increase in profit for H1 FY24 as compared to H1 FY23.
Among the company’s key accomplishments is the extension of its biggest programme, under which it supplies driveline products to American Axle. The partnership has been extended for another 7 years, which will yield nearly INR 280 Cr in revenue over the time-period. KEL also announced that it has commenced the supply of parts, such as fully painted & CED coated frames, swing arms & main stands, for the E-Luna, the electric version of the iconic Luna moped. To help cater to the high consumer demand, KEL is ramping up production by 1.5x, increasing its capacity from the current 40,000 annually to 100,000.
KEL also announced the launch of a new world-class manufacturing unit in Ahmednagar which will produce high-quality gears and shafts for its premium customer Mahindra & Mahindra. The company also reported the launch of transmission assemblies for e-rickshaws and e-autos, as part of its EV initiative, and boasts a robust order book.
Mr. Ajinkya Firodia, Managing Director, Kinetic Engineering Limited, said, “KEL has witnessed a robust performance in the second quarter of FY24, as part of our strong growth trajectory. The extension of our alliance, till 2030, with American Axle to supply driveline products will ensure a steady revenue stream for the company, and we are developing more such partnerships to grow our footprint. We have also built a brand-new manufacturing unit of world-class standards to support one of our biggest customers, Mahindra & Mahindra, with high-quality gears and shafts. We have also begun the supply of various parts for the E-Luna and have increased our manufacturing capacity by 150% to meet the growing demand.
Prospects for the rest of the year appear promising, and we look forward to our growth trends continuing, with a focus on driving volumes and a healthy profit margin, along with maintaining resource efficiency.”
About Kinetic Engineering Limited:
Kinetic Engineering Limited (KEL) is the flagship company of the Kinetic Group with five decades of manufacturing experience. Kinetic is led by Ajinkya Firodia, Managing Director, who appears as one of the angel investors in the first season of Indian angels, the world’s first OTT angel investing show which has recently premiered on JioCinema.
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 1000 employees, 32 manufacturing sheds and more than 400 machines. All of KEL’s products are IATF 16949 certified.
KEL recently celebrated its 52 years anniversary and glorious journey in manufacturing excellence. The firm’s esteemed customer list includes Renault, American Axle, TATA Motors, Mahindra & Mahindra, Ashok Leyland, Magna Powertrain, Sonalika tractors, Carraro products, and many others. It has over 1,000 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 Bombay Stock Exchange (BSE): 500240
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