Momentum in profitability continues at KEL, reports 190% jump in net profit

Pune (Maharashtra) [India], November 20 (ANI/ATK): The automobile industry is synonymous with the name Kinetic Engineering Limited- a company that has been spearheading revolution in the automobile industry for over five decades. While the pandemic forced everyone to go through a rough patch, Kinetic continues to see aggressive profitability even in the current quarter. With renewed energy and dedication Kinetic is staying true to being an industry leader.
In the second quarter alone, the company has seen a solid increase of 56% in total income from Rs 21.68 crs to Rs 32.71 crs over the same quarter in the last financial year. EBITDA for the same quarter also grew at a firm 136 % from Rs 1.63 crs to Rs 3.84 crs. On the other hand, compared to the last quarter ended June 21, total income have increased 17% from Rs 28.11 crs to rs 32.71 crs and EBDITA by 7% from Rs 3.57 crs to Rs 3.84 crs. While people and companies are still finding their feet, the success garnered by Kinetic only speaks volumes of the demand and need of the services the company provides.
This continuous trend of growing profitability is very evident in the third consecutive quarter where the net profit grew by 190% quarter on quarter all the way to Rs 58 lacs from Rs 20 lacs. Leaving behind a loss of Rs 168 lacs in the same quarter of the last financial year, the current quarter's profit stands testimony to the company's dedication, hard work and timely restructuring. This exhibits a trend of sustained and improved profitability along with an operational turnaround of the business.
Elated at the numbers and focused on driving the growth even further, Ajinkya Firodia, MD, Kinetic Engineering Limited said the path they are on is the right one and the growing numbers are representative of that. "We are pleased with the continued momentum of KEL's growth and profitability. The response to the 100% made in India electric axles developed by us has received tremendous response, and I am pleased to see so many manufacturers changing from Chinese imported products to our good quality, indigenous offerings. I am sure this will further propel KEL's growth," Firodia said.
On a global scale
The company is confident of maintaining the current trend of sustained and improved profitability. Armed with continued research and development directed towards further reducing costs while maintaining and winning new business to further improve performance. The pandemic affected company's world over and KEL was no different. However, with the restructuring and well-planned processes in place, a good order visibility has not only been recorded but KEL is on the mark to beat the trend of global chip shortages and rising commodity prices.
In the last quarter, the company has also successfully launched products for electric vehicles and these have received a tremendously positive response. The company is now gearing up to launch a range of new products in the electric mobility space, which has a very high potential in the coming years. Newer products have great potential and allow the company to stand tall on a solid growth path, delivering consistent strong financial performance with further improvements in costs.
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