Kennametal India Limited (KIL) has announced its financial results for the third quarter of FY24, ending March 31, 2024, with a notable 5.1% increase in sales and a significant 135% surge in Profit Before Tax (PBT) compared to the same quarter last year.
Financial Performance
Sales Growth: KIL recorded sales of ₹2,688 Mn, marking a 5.1% rise from ₹2,557 Mn reported in the corresponding quarter of the previous fiscal year.
Profit Before Tax (PBT): The company reported a PBT of ₹517 Mn, demonstrating a remarkable 135% increase compared to ₹220 Mn in the same period last year.
Factors Driving Growth
The sales growth is attributed to the expanding domestic market, particularly in both the Hard Metals and Machine Tools segments. This increase in sales was further bolstered by higher production volumes and an exceptional item. The surge in PBT is primarily a result of revenue growth, increased production volumes, and effective cost control measures implemented by the company.
Management Commentary
Vijaykrishnan Venkatesan, Managing Director of KIL, expressed satisfaction with the company’s performance, highlighting the sustained momentum in the domestic market. He attributed the significant growth in PBT to robust demand in the domestic market, coupled with higher production volumes and diligent cost management initiatives. He also emphasized the company’s commitment to executing strategic imperatives focused on commercial excellence and operational efficiency to drive profitable growth in targeted end-use segments.
Dividend Announcement
In addition to the impressive financial results, KIL announced an interim dividend of ₹30 per share for FY24, compared to ₹20 per share for FY23. This decision reflects the company’s confidence in its financial position and commitment to delivering value to its shareholders.
