Kirloskar Pneumatic Company Ltd., a prominent player in air, refrigeration, and gas compression business in India, has announced its financial results for Q3 of the financial year FY24.
Q3 FY24 witnessed 9 per cent growth in sales compared to the preceding quarter, Q2 FY24. However, the cumulative sales for the first nine months (9M) of the fiscal year at Rs 832.6 crore is 5 per cent lower than Rs 879.7 crore of the previous year.
During the third quarter, the company ran factories without block closures to build packages for dispatch in Q3 and Q4. Production at the forging plant at Nashik stabilised, and this should help in margin improvements going forward. The sale of calana booster compressors picked up, as did the sale of ammonia compressors for cold chains.
The order book stood at over Rs 1,546 crore (PY Rs 1300 crore) giving us clear visibility for growth in the upcoming quarters. Input prices and availability have both improved, allowing for the trimming of execution times. However, site readiness and clearances for dispatch remain a challenge in many cases.
The compression business accounts for approximately 92 per cent of the company's revenue and remains the sole reporting segment.
Revenue from Operations:
- YTD 9M - Revenue from operations was at Rs 832.6 crore vs. Rs 879.7 crore in FY 23.
- Q3 - Revenue from operations of Rs 308.5 crore as against Rs 312.2 crore of the previous year.
EBITDA:
- The year-to-date (YTD) performance for the first nine months of the current year shows an improvement in the EBIDTA margin, reaching 14.7 per cent of total income to Rs 846.1 crore, compared to 14.2 per cent of total income to Rs 888.2 crore in the previous financial year.
- EBIDTA for the third quarter (Q3) at 18 per cent (Rs 56.2 crore) as against 16.6 per cent (Rs 52.1 crore ) Q3 of the previous year.
PBT:
- In the ongoing fiscal year, the year-to-date profit before tax (YTD PBT) at Rs 97.1 crore (11.5 per cent of the total income) compared to Rs 101.2 crore in the previous FY 23.
PAT:
- The net profit after tax for the initial nine months of the current fiscal year is Rs 73 crore, in comparison to the previous year's Rs 76.3 crore. This is 8.6 per cent of sales in both years.
EPS:
- YTD Earnings Per Share in the current year have shown a stable earning, reaching Rs 11.30 per share. This is marginally down compared to the previous year's earnings of Rs 11.83 per share.
DIVIDEND:
- In line with the dividend policy, the Board of Directors has declared an interim dividend of Rs 2.50 (125 per cent) per equity share with a face value of Rs 2 each. This is the same as in the previous year.