KEI Industries stock jumps over 3% as labour strike ends; production loss limited to Rs 10 crore

KEI Industries will ramp up production at its two units to make up for the output loss.

KEI Industries share price jumped more than 3 percent to Rs 4,565 on June 21 as the labour strike at the company’s two units ended, limiting the production loss. Due to the strike, the company lost production of approximately Rs 10 crores, it said in a stock exchange filing.

The operations at the Rakholi and Chinchpada units -- the two units hit by the strike -- have been normalised, KEI Industries said in the statement, adding that it will ramp up the production to make up for the production loss.

KEI Industries Chairman and Managing Director Anil Gupta said in an interaction with CNBC TV18 that the production has started and is back to normal level. Earlier this week, cables and wires maker KEI Industries estimated a loss of production worth Rs 8 crore per day of the strike.

Gupta said today that the company's Q1 performance so far is in line with guidance. He reiterated the 15-16 percent revenue growth guidance for the current fiscal year 2024-25.

He expects the demand traction to continue, helped by the company's recent capex push. KEI Industries has invested about Rs 84 crore at the Chinchpada facility in capex in the financial year 2024. During the March quarter earnings call, the management said they would continue their brownfield capex at the unit and will spend another Rs 65 crore in the next one to two months.

Gupta said he expects KEI Industries' exports to grow by 50 percent this fiscal year. The domestic B2C business is also likely to expand 50 percent.

KEI Industries has nearly 12 percent market share in cables, and approximately 10 percent overall market share. The company is reducing its working capital by 8-10 days every year, said Gupta.