Kinetic Engineering posts Rs 1.7 crore profit for Q2 FY2024
The company says it has extended its supply programme for driveline products to American Axle for another 7 years.
Pune-based component supplier Kinetic Engineering (KEL) has reported its financial results for Q2 and H1 FY2024.
In Q2 the company reported revenue of Rs 3.7 crore, up 6 percent, compared to Rs 3.5 crore for the same period last year. The net profit grew by 7 percent to Rs 1.7 crore as against Rs 1.6 crore last year.
For H1 FY2024, the revenue came at Rs 7.5 crore, as against Rs 6.8 crore last year, while net profit came at Rs 3.1 crore as against Rs 54 lakh last year.
The company says it has extended its supply programme for driveline products to American Axle for another 7 years, which it says will yield nearly Rs 280 crore in revenue over the time period. It has also 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 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.
Furthermore, it also opened a new manufacturing unit in Ahmednagar to produce gears and shafts for 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.
Ajinkya Firodia, MD, Kinetic Engineering said, “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.”