Kirloskar Brothers (500241) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue reached INR 1,031 crore (Rs. 10,309 million), up 15% year-over-year, with EBITDA at INR 127 crore and PAT at INR 66 crore, reflecting growth in both top and bottom lines.

• EBITDA margin stood at 12.3% and PAT margin at 6.4%, with EPS at Rs. 8.2 for the quarter.

• The Board approved the sale of the entire stake in The Kolhapur Steel Limited to streamline the corporate structure and enhance efficiency.

• Standalone and consolidated results were reviewed by the Audit Committee and approved by the Board on August 2, 2024.

• Focus areas for the next year include operational efficiency, digitization, automation, and market penetration.

Financial highlights

• Consolidated Q1 FY25 revenue reached INR 1,031 crore, up 15% year-over-year, with EBITDA at INR 127 crore and EBITDA margin of 12.3%.

• Profit after tax increased 3% year-over-year to INR 66 crore; consolidated net profit at ₹656 million.

• Gross margin improved to 51.0% from 49.6% year-over-year.

• Standalone EPS for Q1 FY25 was ₹5.15, consolidated EPS was ₹8.20.

• Orderbook remains robust, with consolidated pending orders at Rs. 3,111 crore, supporting future revenue visibility.

Outlook and guidance

• Double-digit revenue growth guidance for FY25 in the domestic business is maintained.

• Strong orderbook across domestic and international markets indicates sustained revenue growth potential.

• Focus on increasing share of value-added products and services, and expanding subscription-based offerings.

• Strategic reduction in EPC business exposure, with emphasis on higher-margin segments.

• Optimism for future growth supported by a healthy order pipeline and ongoing investments in technology.