Kirloskar Oil Engines Limited (KOEL), one of the prominent players in the production of internal combustion engines, agricultural machinery, and generator sets, has unveiled its unaudited financial performance for the third quarter of the fiscal year 2024, concluding on December 31, 2023. KOEL boasts a substantial footprint in global markets.
With a strong global presence, KOEL is a leader in the manufacturing of generator sets, agricultural equipment, and internal combustion engines. Specializing in manufacturing both air-cooled and liquid-cooled engines for generator sets ranging from 2kVA to 3000 kVA, the company also excels in crafting top-tier engines for construction equipment.
With a robust distribution network spanning the Middle East and Africa, including offices in Dubai, South Africa, Kenya, and Houston, USA, KOEL ensures its products meet stringent noise and exhaust emission regulations through its dedicated Research & Engineering Facility. Moreover, the company distinguishes itself by offering engines compatible with alternative fuels such as biodiesel, natural gas, and biogas.
In reflecting on the third-quarter outcomes, Gauri Kirloskar, the Managing Director of Kirloskar Oil Engines, expressed satisfaction with the company’s performance, highlighting financial accomplishments and significant strides in pivotal strategic endeavors. Within the Global Power Generation arm, the company made advancements by appointing essential GOEM partners in the MENA and North American regions, a move geared towards expanding their business footprint and fostering market growth abroad.
Domestically, the company maintained robust demand, effectively meeting orders for both CPCBII and CPCBIV+ gensets. Their Industrial sector witnessed buoyant demand from the construction and railway sectors, alongside securing a substantial Rs 768 Cr order from the Nuclear Power Corporation of India Limited, marking the largest single order in Kirloskar Oil Engines’ history.
Meanwhile, in their Distribution and Aftermarket segment, intensifying service coverage remains a priority as they endeavor to enhance their service capabilities. Many enhancements in profitability are evident through various consumer-oriented initiatives, underscoring their progress in this realm. With sustained momentum in domestic demand, the company harbor confidence in their strong alignment with the 2X-3Y strategy.
The third quarter of FY24 showcased robust financial growth for the company, with net sales reaching INR 1,125 Cr, marking a substantial 14% increase compared to INR 990 Cr in Q3 FY23. EBITDA surged to INR 133 Cr, representing a notable 21% rise from INR 109 Cr in the same quarter last year. The EBITDA margin also improved to 11.7% in Q3 FY24, up from 10.9% in Q3 FY23.
Additionally, net profit stood at INR 82 Cr, reflecting a commendable 21% increase from INR 68 Cr in Q3 FY23. The company also maintained a solid financial position with cash and cash equivalents of INR 78 Cr. The company’s performance over the YTD FY24 period remained impressive, with net sales totaling INR 3,428 Cr, marking a substantial 17% increase from INR 2,932 Cr in YTD FY23. EBITDA for the same period reached INR 386 Cr, representing an 18% surge from INR 328 Cr in YTD FY23.
The EBITDA margin slightly improved to 11.2% in YTD FY24 compared to 11.1% in YTD FY23. Furthermore, the net profit for YTD FY24 was reported at INR 244 Cr, reflecting a noteworthy 19% increase from INR 205 Cr in YTD FY23. Consolidated financial results for Q3 FY 24 reveal a notable uptick in revenue from operations, reaching INR 1,390 Cr compared to INR 1,220 Cr in Q3 FY 23, marking a substantial 14% year-on-year increase.
Similarly, net profit for the quarter stood at INR 89 Cr, slightly higher than the INR 88 Cr recorded in the same period last year, reflecting a modest 1% Y-o-Y growth. Meanwhile, examining the year-to-date (YTD) figures for FY 24 demonstrates a robust performance, with revenue from operations reaching INR 4,238 Cr compared to INR 3,640 Cr in YTD FY 23, indicating a significant 16% increase year-on-year.