Kirloskar Pneumatic Company Ltd (KPCL), a prominent player in the Air, Refrigeration, and Gas Compression industry in India, has reported its financial performance for the second quarter (Q2) and the first half (H1) of the fiscal year FY 24.

In Q2, the company experienced notable growth in revenue from operations, surpassing 16 per cent compared to Q1. However, H1 revenue fell by approximately 8 per cent when compared to the same period in FY 23, primarily due to a decrease in export sales amounting to Rs 47 crore.

Despite the challenges in H1, KPCL maintained a robust order booking, securing over Rs 340 crore in new orders, surpassing H1 of FY 23. As of September 30, 2023, the company had a backlog of orders worth Rs 1,450 crore, which is expected to contribute to a strong second-half (H2) sales performance, resulting in year-over-year sales growth.

In Q2 of FY 24, the company achieved a Profit Before Tax (PBT) of Rs 26.8 crore, marking a 14 per cent increase over the Q1 FY 24 PBT of Rs 23.5 crore. However, for H1 of FY 24, the PBT was reported at Rs 50.3 crore, down from the previous year's Rs 57.6 crore, mainly due to reduced sales, especially in the export market during the current period.

To enhance its market presence, KPCL introduced the Aria range of competitively priced standard air compressors, targeting a market segment that has predominantly relied on imports.

With the establishment of the Forging and Fabrication facility in Nashik, the company has achieved greater vertical integration and competitiveness in terms of its product offerings and execution speed.

The compression business remains the primary source of revenue for the company, contributing to around 90 per cent of its total revenue and remains the sole reporting segment.