Kirloskar Ferrous Industries Limited (BSE: 500245), a prominent Indian company specializing in castings and pig iron manufacturing, disclosed its unaudited financial performance for the quarter concluding on December 31, 2023, earlier today.
Established in 1991, Kirloskar Ferrous Industries Limited stands as one of India’s premier manufacturers of castings and pig iron, serving diverse sectors including tractors, automobiles, and diesel engines. With state-of-the-art manufacturing facilities located in Koppal, Hiriyur, and Solapur, the company possesses a unique capability to produce a wide range of products, including grey iron castings weighing up to 300 kg each.
Additionally, the company is a producer of various pig iron grades, such as SG iron grade, basic steel grade, and foundry grade. Kirloskar Ferrous Industries Limited is currently in the process of expanding its manufacturing capacities in pig iron and casting.
In the latest financial report for Q3 FY 2023-24, R.V. Gumaste, the Managing Director of KFIL, expressed satisfaction with the company’s performance, highlighting a noteworthy 10% increase in operating revenue compared to the previous quarter. Despite challenges such as lower realizations on pig iron and a tractor industry slowdown, the company demonstrated resilience.
Mr Gumaste attributed this positive outcome to the successful completion of major maintenance on the MBFs in the previous quarter, enabling KFIL to return to full production capacity. He also assured stakeholders that all critical projects are progressing as planned.
Providing insights into the standalone financial performance, the report revealed an operating revenue of INR 968.0 Cr for Q3 FY24, marking a significant 10% growth compared to INR 879.8 Cr in Q2 FY24. However, the EBITDA saw a 4% decrease, standing at INR 126.9 Cr for Q3 FY24 versus INR 132.7 Cr in Q2 FY24. The EBITDA margin also experienced a slight decline from 15% in Q2 FY24 to 13% in Q3 FY24.
In the consolidated financial overview, the operating revenue for Q3 FY24 was reported at INR 1,548.2 Cr, reflecting a marginal 1% decrease from INR 1,559.7 Cr in Q2 FY24. Similarly, the consolidated EBITDA witnessed an 8% decline, amounting to INR 232.0 Cr in Q3 FY24 compared to INR 252.3 Cr in Q2 FY24. The EBITDA margin, although slightly reduced from 16% in Q2 FY24 to 15% in Q3 FY24, remained respectable.
Analyzing the profit figures, the report indicated an 8% decrease in PBT (before exceptional items) for Q3 FY24, with INR 147.9 Cr versus INR 169.8 Cr in Q2 FY24. On a positive note, the consolidated PAT exhibited a noteworthy 29% increase, reaching INR 105.3 Cr in Q3 FY24 compared to INR 81.7 Cr in Q2 FY24.
Regarding the anticipated KFIL ISMT merger, Gumaste informed stakeholders that the company is diligently working towards obtaining the necessary approvals in line with NCLT orders, aiming to complete the merger in compliance with statutory and regulatory requirements.
