Kirloskar Ferrous Industries Ltd. (KFIL) reported a 5.76% decline in its consolidated net profit for the first quarter of FY 2025, posting Rs 69.7 crore in earnings. The company’s revenue remained steady at Rs 1,554 crore, compared to Rs 1,536 crore in the same quarter of the previous fiscal year.
Operating income, measured by EBITDA (earnings before interest, taxes, depreciation, and amortization), increased by 13% year-on-year to Rs 186 crore. The EBITDA margin also improved to 12%, up from 10.7% in the corresponding quarter last year.
Commenting on the results, Managing Director R.V. Gumaste said, “We have announced our first quarterly results as a merged entity and are grateful to our stakeholders for their support throughout the merger process. The first quarter was challenging due to lower demand for most of our products and ongoing margin pressures. However, we have seen an uptick in demand for castings and tubes since the end of Q1 and are optimistic about achieving our volume targets for FY 2025. Additionally, we successfully commissioned the first phase of our solar plant at Jalna this quarter.”
In terms of segment performance, the casting segment saw a rise in revenue from Rs 935 crore to Rs 1,029 crore, and the steel segment grew from Rs 400 crore to Rs 427 crore compared to the same quarter last year. However, the tube segment experienced a slight decrease, with revenue dropping from Rs 509 crore to Rs 454 crore year-on-year.
Kirloskar Ferrous Industries Limited, established in 1991, is one of India’s leading manufacturers of castings and pig iron. The company serves a variety of sectors, including tractors, automobiles, and diesel engines. Its production facilities located in Koppal, Hiriyur, and Solapur are equipped to produce a diverse range of products, including grey iron castings weighing up to 1000 kg. The company also manufactures different grades of pig iron, such as SG iron grade, basic steel grade, and foundry grade.
Kirloskar Ferrous is actively expanding its production capacities in both pig iron and casting. The company has integrated 3D printing facilities, allowing for rapid development of new products and increased production capabilities. Additionally, it supplies fully machined castings and has introduced a coke oven manufacturing facility with waste-heat recovery power.
With the recent merger, Kirloskar Ferrous’ product portfolio now includes ISMT Steel and seamless tubes. ISMT, a pioneer in seamless tube manufacturing in India, is recognized for its applications in bearings, boiler tubes, and automotive piping. ISMT also specializes in alloy steel manufacturing, known for its bearing quality de-gassed steels, which have successfully replaced imported critical alloy steels with locally produced alternatives.
