Shares of KEI Industries slipped 3 percent to Rs 4,305 in morning trade on June 20 after the company announced that the plants at Rakholi and Chinchpada were partially affected due to the production stoppage amid a labour strike.
These facilities are located in the Union Territory of Dadra & Nagar Haveli and Daman and Diu.
"The company is in continuous discussion with the concerned labour contractors and workers to resolve the issue amicably as soon as possible and will provide an update on further developments in due course," the company said in a regulatory filing.
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The reason for the strike is a demand for higher wages among others, which the company termed 'completely unwarranted'.
The company also highlighted that it estimates a loss of production worth Rs 8 crore per day of the strike. All assets though, are covered by insurance, the exchange filing said.
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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.
The company clocked a profit of Rs 168.5 crore during the quarter, up 22 percent from Rs 138 crore in the year-ago period. Its revenue rose 19 percent to Rs 2,319.2 crore from Rs 1,952.9 crore reported during the same period last year.
As for the earnings before interest, taxes, depreciation, and amortisation or EBITDA, it stood at Rs 244.5 crore, up a 21 percent increase of over Rs 202 crore during the quarter.
At about 9:50 am, shares of the company were trading at Rs 4,359, down 1.8 percent from the last close. KEI Industries' shares have risen nearly 37 percent since the start of the year.
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