Kirloskar Industries Ltd (KIL) (BSE: 500243; NSE: KIRLOSIND) has announced a robust financial performance for the fourth quarter and the financial year ended March 31, 2024. The company reported a significant 42.4% increase in its Q4 profit, reaching Rs 62.46 crore, alongside a 9.8% year-on-year revenue growth.
Mr Mahesh Chhabria, Managing Director of KIL, commented on the results, stating, “We are delighted to announce our fourth quarter and full year results. This quarter marks a significant milestone as Avante Spaces Limited (ASL), our 100% subsidiary in the real estate business, has recognized revenue from its first project, ‘One Avante’ in Kothrud, which is now reflected in our consolidated performance. ASL is now focused on executing the second project on time despite challenges in the labor market and approval delays.”
Despite some headwinds, such as subdued demand in the tractor industry and lower pig iron realization affecting their subsidiary Kirloskar Ferrous Industries Ltd. (KFIL), KIL managed to deliver strong consolidated results. The KFIL-ISMT merger is progressing well and is expected to be completed soon.
Q4 & FY 2023-24 Financial Performance Highlights:
Standalone Performance:
Kirloskar Industries reported a total income of INR 40.65 crore for Q4 FY24, marking a 2.08% increase from INR 39.82 crore in Q4 FY23. However, the profit after tax (PAT) for Q4 FY24 declined by 11.36% to INR 22.23 crore compared to INR 25.08 crore in the same quarter the previous year. For the full fiscal year FY24, the total income rose by 16.10% to INR 133.51 crore from INR 114.99 crore in FY23, while PAT saw a slight increase of 0.70% to INR 74.64 crore from INR 74.12 crore in FY23.
Consolidated Performance:
Kirloskar Industries reported a total income of INR 1,736.44 crore for Q4 FY24, reflecting a 9.11% increase from INR 1,591.51 crore in Q4 FY23. Despite this growth, the profit after tax (PAT) for Q4 FY24 decreased by 23.82% to INR 70.99 crore, compared to INR 93.19 crore in the same quarter of the previous year. For the full fiscal year FY24, total income slightly declined by 1.85% to INR 6,411.65 crore from INR 6,532.65 crore in FY23, and PAT decreased by 21.50% to INR 360.73 crore from INR 459.57 crore in FY23.
Kirloskar Industries, incorporated in 1978, invests in securities of group companies and rents out commercial spaces. The company, which is publicly listed on both BSE and NSE, is the holding company of Kirloskar Ferrous Industries Ltd. It has also diversified into real estate development through its wholly owned subsidiary, Avante Spaces Limited.
This significant financial performance underscores Kirloskar Industries’ resilience and strategic growth, particularly in expanding its real estate ventures and navigating challenges within its industrial sectors. The recognition of revenue from ASL’s first project, “One Avante,” marks a pivotal step in its growth trajectory, reflecting the company’s ability to innovate and adapt in a dynamic market environment.
