Kiri Industries Limited — Investor Meet, 19-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance**: Kiri Industries reported Q3 revenue from operations of ₹156 crore, marking an 11% year-on-year growth and an 8% increase quarter-on-quarter. Net profit for the quarter was ₹25 crore, boosted by higher other income from dividends. For the nine months of FY25, standalone revenue reached ₹469 crore, up 8% year-on-year, with a net profit of ₹3 crore. On a consolidated basis, revenue grew 12% year-on-year to ₹179 crore, yet showed a net loss of ₹14 crore pre-OCI and joint ventures, ultimately reporting a net profit of ₹153 crore after OCI. The legal victory in the DyStar case is expected to bolster future margins once legal costs normalize.

**Future Outlook and Growth Drivers**: Management expects to enhance operational performance, especially post-settlement of legal costs. The projected DyStar sale proceeds, anticipated between April and June 2025, will provide substantial capital for further business initiatives, with half earmarked for new projects.

**Order Book and Operational Updates**: The company is progressing with its CAPEX phases—totaling ₹8,000 crore—focused on a copper project, with Phase 1 expected to generate ₹45,000 crore in revenue and an EBITDA of approximately ₹4,000 to ₹5,000 crore.

**Analyst Q&A Insights**: Analysts probed details on CAPEX, including the recent $603.8 million DyStar proceeds and its allocation between project financing and cash reserves. The management confirmed plans to optimize copper project operations while maintaining profitability in existing businesses.

**Market or Regulatory Updates**: Expectations around copper demand remain optimistic, as management cited an expected increase to 2.8 million tons by 2030, fueled by EV growth.

**Strategic Focus Areas**: The focus remains on efficient project execution in copper, increasing capacity in existing segments, and leveraging legal victories to improve profit margins.

**Investor Insight**: The financial results coupled with future growth opportunities suggest a favorable outlook for Kiri Industries, positioned for potential appreciation in value, aligning with a ‘buy’ viewpoint. The expected stabilization of legal costs and the substantial DyStar proceeds add to the positive sentiment.