Kirloskar Pneumatic Company Ltd (KPCL) announces its strong financial performance for Q2 FY24, showcasing a remarkable 15% QoQ income growth and a 14% PBT increase over the previous quarter. While H1 revenue decreased by about 8% YoY due to lower export sales, KPCL’s order book remained robust, positioning the company for strong sales growth in H2. The launch of competitively priced air compressors and vertical integration through a new facility highlights the company’s strategic initiatives. KPCL is a key player in India’s Air, Refrigeration, and gas Compression industry, serving various sectors and maintaining excellence in its offerings.
Kirloskar Pneumatic Company Ltd (KPCL), a leading player in India’s Air, Refrigeration, and gas Compression industry, unveiled its financial results for Q2 and H1 of FY 24.
In Q2 FY 24, KPCL demonstrated robust financial performance with a remarkable 15% quarter-on-quarter income growth. The company achieved a profit before tax (PBT) of Rs 26.8 cr for Q2 FY 24, reflecting a significant 14% growth over Q1 FY 24. Despite lower sales in the export market during the current period, KPCL reported a PBT of Rs 50.3 cr for H1 FY 24. The company’s order book remained strong, with an additional order inflow of over Rs 340 Cr in H1, setting the stage for substantial sales growth in H2.
KPCL has expanded its offerings with the launch of the competitively priced Aria range of standard air compressors, targeting a market predominantly served by imports. Additionally, with the commissioning of its Forging and Fabrication facility in Nashik, KPCL has become more vertically integrated and competitive in terms of offerings and execution speed.
In terms of financial performance, revenue from operations for Q2 FY 24 surged by 16% over Q1 FY 24, contributing to total income of INR 286 cr, as compared to INR 248 cr in Q1 FY 24. Despite the EBITDA margin slightly declining to 12.5% in Q2 FY 24, the PBT remained at 9.5% in both Q1 and Q2 of FY 24. KPCL maintained a steady PAT% at 7.2% for both Q1 and Q2 of FY 24. Basic EPS in Q2 improved to Rs. 3.12 per share compared to Rs. 2.77 in Q1 of FY 24.
KPCL continues to be a dominant player in the compression business, representing around 90% of the company’s revenue. Despite challenges, KPCL’s Q2 FY 24 performance is indicative of its resilience and strategic initiatives.
About Kirloskar Pneumatic Company Ltd:
Established in 1958, Kirloskar Pneumatic Company Ltd (KPCL) specializes in Air, Refrigeration, and Gas compressors, as well as systems, vapor absorption chillers, and industrial gearboxes. With extensive expertise in various sectors, including steel, cement, cold chains, food and beverages, pharmaceuticals, railways, defense, and marine, and significant exposure to the Oil and gas industry, KPCL stands as a reputable and innovative player in the Indian industrial landscape. KPCL’s technology partnerships with global companies and research institutes contribute to its continued success, earning the company numerous awards for excellence in quality, innovation, training programs, HR, and in-house communication.
