Highlights: H1FY22 revenue, EBITDA and PAT grew by 26%, 6% and 114% on a YoY basis The sustained growth trajectory of enquiry generation & orderbook growth continues Material test lab at KOV plant has completed NABL accreditation in accordance with ISO/IEC 17025: 2017 standard for testing laboratories. Won the "Digital Technology Senate Award 21" under the Internet of Things category Commenting on the results Mr. Sanjay Kirloskar, CMD – Kirloskar Brothers Limited said, “We are pleased with the resilient financial and operational performance across all the products and geographies despite facing multiple challenges during the quarter. H1FY22 revenue, EBITDA and PAT grew by 26%, 6% and 114% on a YoY basis, respectively. However, continued upwards momentum in the raw material prices, change in the product mix, higher level of inventory which wasn’t converted into sales impacted the Gross and EBITDA margins in Q2FY22. Increase in production did not result in increase in sales as certain composite orders could not be dispatched due to supply chain disruptions. Although high freight costs and commodity prices are expected to taper off towards the end of FY22, the company is implementing all possible measures at its disposal to mitigate the higher input costs. During the quarter, the company received orders worth Rs 884 crores and the order flow is expected to remain robust based on the current enquiry flow and a sharp pick-up in the government spending. Enquiries and activity in the Industrial and large pumps space are expected to remain buoyant driven by stronger commodity prices and the recent pick-up in the capex cycle. The company has a robust, welldiversified orderbook of Rs 2,183 crores, which does not include orders for made to stock products, that contribute substantially to the top-line. This robust orderbook provides strong revenue visibility, going forward. KBL’s strong brand recall coupled with a unique value proposition in terms of the end-to-end offering has resulted into providing a complete basket of solutions to the customers. Global existence with local presence across all major trading blocks and diversified presence across multiple segments and multiple business models have carved a niche that has ultimately resulted into countercyclical and consistent cashflows. The performance is expected to improve driven by de-bottlenecking at various plants, continued robust pace of enquiry generation, pick-up in the government capex cycle and various digital initiatives undertaken by the company. Profitability and return ratios are also expected to improve due to operating leverage and turnaround at various key subsidiaries. The company continues to explore various growth opportunities in terms of geographic expansion and value addition to the existing customers.” Result PDF
Highlights: H1FY22 revenue, EBITDA and PAT grew by 26%, 6% and 114% on a YoY basis The sustained growth trajectory of enquiry generation & orderbook growth continues EBITDA was at Rs. 38.7 Crs for Q2 FY22 EBITDA Margin was 5.2% Q2 FY22 PAT was at Rs. 3.8 Crs Q2 FY22 Commenting on the results Mr. Sanjay Kirloskar, CMD – Kirloskar Brothers Limited said, “We are pleased with the resilient financial and operational performance across all the products and geographies despite facing multiple challenges during the quarter. H1FY22 revenue, EBITDA and PAT grew by 26%, 6% and 114% on a YoY basis, respectively. However, continued upwards momentum in the raw material prices, change in the product mix, higher level of inventory which wasn’t converted into sales impacted the Gross and EBITDA margins in Q2FY22. Increase in production did not result in increase in sales as certain composite orders could not be dispatched due to supply chain disruptions. Although high freight costs and commodity prices are expected to taper off towards the end of FY22, the company is implementing all possible measures at its disposal to mitigate the higher input costs. During the quarter, the company received orders worth Rs. 884 crores and the order flow is expected to remain robust based on the current enquiry flow and a sharp pick-up in the government spending. Enquiries and activity in the Industrial and large pumps space are expected to remain buoyant driven by stronger commodity prices and the recent pick-up in the capex cycle. The company has a robust, well diversified orderbook of Rs. 2,183 crores, which does not include orders for made to stock products, that contribute substantially to the top-line. This robust orderbook provides strong revenue visibility, going forward. KBL’s strong brand recall coupled with a unique value proposition in terms of the end-to-end offering has resulted into providing a complete basket of solutions to the customers. Global existence with local presence across all major trading blocks and diversified presence across multiple segments and multiple business models have carved a niche that has ultimately resulted into countercyclical and consistent cashflows. The performance is expected to improve driven by de-bottlenecking at various plants, continued robust pace of enquiry generation, pick-up in the government capex cycle and various digital initiatives undertaken by the company. Profitability and return ratios are also expected to improve due to operating leverage and turnaround at various key subsidiaries. The company continues to explore various growth opportunities in terms of geographic expansion and value addition to the existing customers.” Commenting on the international business, Mr. Alok Kirloskar, Managing Director – Kirloskar Brothers International B.V. said, “In the international business, the company witnessed huge currency volatility especially in Thailand where profitability got impacted due to forex marked to market positions which are notional in nature. The company is focusing to stabilise the Dutch operations which had found it harder to deepen market presence during the pandemic. The other companies in the international business are doing better. The company is witnessing a significant pick-up across geographies led by robust growth in enquiries and conversion leading to a stronger order book, implying better revenue visibility for the short and mediumterm. This will be further supported by our various innovative, advanced digital initiatives which will provide sustainability, stability and scalability along with improved profitability. The company will continue to leverage unique value proposition and technological initiatives to create value for the shareholders.” Result PDF