Kirloskar Brothers (500241) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue reached Rs. 1,031 crores, up 15% year-over-year, with EBITDA at Rs. 127 crores and PAT at Rs. 66 crores, reflecting steady growth and margin improvement.

• Strong orderbook across domestic and international markets ensures robust revenue visibility for upcoming quarters.

• Strategic focus on value-added products and services, with reduced exposure to low-margin EPC business, is driving higher profitability and improved working capital cycle.

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

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

Financial highlights

• Q1 FY25 revenue grew 15% year-over-year to Rs. 1,031 crores; EBITDA increased 10% to Rs. 127 crores (margin 12.3%).

• PAT rose 3% year-over-year to Rs. 66 crores (margin 6.4%); EPS at Rs. 8.2 versus Rs. 8.0 last year.

• Gross margin improved by 136 bps year-over-year to 51.0%.

• Other income rose 178% year-over-year, mainly from investment income.

• Finance costs reduced to Rs. 5.8 crores from Rs. 7.5 crores year-over-year.

Outlook and guidance

• Double-digit revenue growth guidance for FY25 in the domestic business is maintained, supported by a robust orderbook of Rs. 3,053 crores at Q1 FY25 end.

• Overseas orderbook remains strong, with delays expected to be resolved in coming quarters.

• Focus on expanding value-added products and subscription services internationally.

• Continued cost optimization and debottlenecking at key subsidiaries to enhance margins.

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