Kirloskar Brothers (500241) Q2 24/25 earnings summary

Executive summary

• Consolidated revenues for Q2 FY25 grew 13.4% year-over-year to ₹1,036 crores, and H1 FY25 revenues rose 14% to ₹2,067 crores, reflecting strong demand across domestic and international markets.

• Q2 FY25 EBITDA increased 61% year-over-year to ₹156 crores, with margins expanding to 15.1%, driven by operational efficiency, cost control, and a shift toward higher-margin products.

• Q2 FY25 PAT surged 90% year-over-year to ₹97 crores, with PAT margin improving from 5.6% to 9.3%.

• Standalone and consolidated unaudited financial results for the quarter and half-year ended 30 September 2024 were reviewed and approved by the Board on 29 October 2024.

• Both standalone and consolidated results show strong year-over-year growth in revenue and profitability.

Financial highlights

• Q2 FY25 net revenue from operations up 13.4% year-over-year to ₹1,036 crores; H1 up 14% to ₹2,067 crores.

• Q2 FY25 EBITDA up 61.1% year-over-year to ₹156 crores; H1 EBITDA up 33.3% to ₹283 crores.

• Q2 FY25 gross margin increased by 350 bps to 53.5%; H1 FY25 gross margin up 250 bps to 52.3%.

• Q2 FY25 PAT up 90% year-over-year to ₹97 crores; H1 PAT up 41.8% to ₹162 crores.

• Earnings per share for Q2 FY25 at ₹12.1, up from ₹6.4 year-over-year.

Outlook and guidance

• Double-digit revenue growth guidance for FY2025 maintained for standalone business.

• Robust orderbook of ₹3,057 crores as of Q2 FY25, supporting strong revenue visibility.

• Management believes current margin levels are sustainable in the near future.

• Focus on expanding value-added products and subscription services, leveraging global presence and digital IP.

• Continued reduction in EPC business exposure, with increased emphasis on services and high-margin products.