New Delhi: Kinetic Engineering Limited (KEL), a leading auto component manufacturer, has reported nearly five-fold increase in profit for H1 FY24 to INR 3.16 crore from INR 54 lakh in H1 FY23. Standalone EBITDA was at INR 9.61 crore for H1 FY24 as against INR 7.27 crore for H1 FY23.
Among the company’s key accomplishments is the extension of its biggest programme to supply driveline products to American Axle. The partnership has been extended for another 7 years, which will yield nearly INR 280 crore in revenue over this-period.
KEL also announced that it has commenced the supply of parts, such as fully painted and CED coated frames, swing arms and 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 of a robust order book.
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 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,” he added.
