Kirloskar Pneumatic Company Ltd (KPCL), a player in the Air, Refrigeration & Gas Compression business in India, has announced its financial results for Q3 of the fiscal year FY24. Q3 FY24 witnessed a 9% growth in sales compared to the preceding quarter, Q2 FY24. However, the cumulative sales for the first nine months (9M) of the fiscal year at Rs. 832.6 Cr is 5% lower than Rs. 879.7 Cr of the previous year.
Established in 1958, Kirloskar Pneumatic Company Ltd (KPCL) is a company providing an extensive array of products, including Air, Refrigeration, and Gas compressors and systems, vapor absorption chillers, and industrial gearboxes.
With a robust presence in industries such as steel, cement, cold chains, food and beverages, pharmaceuticals, railways, defense, and marine, KPCL is a significant player in India’s Oil & Gas sector, particularly in the CNG business.
Drawing on decades of industry expertise, KPCL has cultivated technology partnerships with renowned global companies and research institutes, ensuring the delivery of cutting-edge solutions and innovations.
The third quarter is generally a shorter quarter due to the holidays. However, KPCL ran the factories without block closures to build packages for dispatch in Q3 and Q4. Production at the forging plant at Nashik stabilized, and this should help in margin improvements going forward. Sale of Calana Booster compressors picked up, as did the sales in Ammonia compressors for cold chains.
KPCL’s order book stands strong at over Rs 1,546 Cr (PY Rs. 1300 Cr), giving clear visibility for growth in the upcoming quarters. Input prices and availability have both improved, allowing for trimming of the execution times. However, site readiness and clearances for dispatch remain a challenge in many cases.
The Compression business accounts for approximately 92% of the Company’s revenue and remains the sole reporting segment.
The Revenue from Operations of KPCL in Q3 2023-24 Financial Performance incorporates revenue from operations at Rs. 832.6 Cr in YTD 9M in comparison to Rs. 879.7 Cr in FY 23. As far as Q3 is concerned, revenue from operations of Rs. 308.5 Cr as against Rs. 312.2 Cr of the previous year.
Talking about EBITDA, the year-to-date (YTD) performance of KPCL for the first nine months of the current year shows an improvement in the EBIDTA margin, reaching 14.7% of total income to Rs.846.1 Cr, compared to 14.2% of total income to Rs.888.2 Cr in the previous financial year.
As far as the EBIDTA for the third quarter (Q3) is concerned, it is at 18% ( Rs. 56.2 Cr ) as against 16.6% ( Rs. 52.1 Cr ) Q3 of the previous year.
In the ongoing fiscal year, KPCL’s Year-to-Date Profit before Tax (YTD PBT) is at Rs. 97.1 Cr, (11.5% of the total income) against Rs. 101.2 Cr in the previous FY 23.
The net profit after tax for KPCL for the initial nine months of the current fiscal year is Rs. 73 Cr, in comparison to the previous year’s Rs. 76.3 Cr. This is 8.6% of sales in both years.
YTD Earnings Per Share in the current year have shown a stable earning, reaching Rs. 11.30 per share. This is marginally down compared to the previous year’s earnings of Rs. 11.83 per share.
In line with the dividend policy, the Board of Directors of KPCL has declared an interim dividend of Rs. 2.50 ( 125% ) per equity share having a face value of Rs. 2/- each. This is the same as in the previous year.
These financial results reflect KPCL’s strategic focus on maintaining production continuity, addressing challenges, and sustaining a healthy order book, providing a foundation for growth in the coming quarters. The company is strategically aligned with its goal to deliver value to its shareholders through dividends while navigating market dynamics and ensuring operational resilience.
