Kirloskar Oil Engines (KIRLOSENG) Q1 24/25 earnings summary

Executive summary

• Achieved record Q1 consolidated revenue of ₹1,636 crore, up 6% year-on-year, with standalone revenue at ₹1,343 crore and net profit up 30% to ₹135 crore standalone and 25% to ₹157 crore consolidated.

• EBITDA margin improved to 14.7% (up 250 bps year-on-year), with consolidated PAT margin at 9.6% and standalone PAT margin at 10%.

• All business units except farm mechanization posted double-digit growth, with strong B2B, B2C, and international performance.

• Board approved a ₹700 crore capacity expansion at the Kagal plant over three years, targeting increased demand and high horsepower products.

• Continued execution of the 2X3Y strategy and $2 billion revenue ambition by FY2030, focusing on manufacturing, technology, and international growth.

Financial highlights

• Standalone revenue: ₹1,343 crore, up 6% year-on-year; consolidated revenue: ₹1,636 crore, up 6% year-on-year.

• Standalone EBITDA: ₹198 crore, up 28% year-on-year; margin at 14.7% (including provision reversal), consolidated EBITDA margin at 8.1%.

• Standalone net profit: ₹135 crore, up 30% year-on-year; consolidated net profit: ₹157 crore, up 25% year-on-year.

• Net cash and equivalents: ₹410 crore at Q1 end, up from ₹112 crore year-on-year.

• Financial services revenue grew 27% year-on-year to ₹163 crore, with AUM at ₹5,768 crore.

Outlook and guidance

• Cautiously optimistic outlook for the next quarter as the market transitions to CPCB IV+; capacity expansion at Kagal plant to be completed in three years.

• Committed to the 2X3Y strategy and $2 billion revenue ambition by FY2030, with focus on double-digit margins and high-margin segments.

• Investment of ₹700 crore for expansion to be funded through internal accruals and borrowings.