Kinetic Engineering Ltd. (KEL) reported Q3 standalone net profit over the year earlier period has more than doubled to ₹1.10 crore, while in the last nine months its net profit has risen by four times to ₹4.26 crore.
“This has been mainly due to good product mix, increase in exports volume, cost cutting measures and reduction in debt. We are now a debt-free firm,” said Chairman Ajinkya Firodia during an interaction.
Asserting that Kinetic Group was the first company in India and the world to introduce e-mopeds, he said that it has been receiving overwhelming response for eLuna from traders and college students alike.
“In the first year (FY25), we plan to sell about 1 lakh units. It will add to our topline by ₹80 crore. The deliveries of eLuna has already begun. Production will be ramped up gradually from 2,000 to 4,000, 6,000 and 8,000 per month,” he said.
The Pune-based company, which had shifted from manufacturing two-wheelers to auto components, has set its sight on producing motors, controllers and batteries for EV segment through its newly floated Kinetic Watts and Volts.
“Recently, our board approved an investment up to ₹50 crore in the new subsidiary. We invested about ₹40-50 crore by selling some non-core assets and little funding. The new subsidiary will produce components for the EV business,” he said.
According to him, KEL will manufacture gear box, chassis, swing arms, main and side stands and other essential body parts and supply it to Kinetic Green Mobility for assembly and sales.
“While the transition to e2w and e3w is strong in India, it is slow in case of e-passenger vehicles in the U.S. Going forward, we would like to maintain a balance between production of components for ICE/EV in 50:50 as ICE vehicles will continue to ply for some more years,” he said.
Asked about exports, he said it was about 50% of total revenue, it might vary in the coming months due to introduction of new EVs. eLuna will be exported after six or seven months.
Enthused by the orders, he said that they are hopeful of ending FY24 with a turnover of ₹150 crore (₹137 crore) and hit ₹250 mark the next fiscal, of which ICE sales would be ₹130 crore.