Kirloskar Brothers (500241) Q2 24/25 earnings summary

Executive summary

• Consolidated revenues grew 13.4% year-over-year to ₹1,036 crores for Q2 FY2025 and 14% to ₹2,067 crores for H1 FY2025, reflecting strong demand across domestic and international markets.

• EBITDA for Q2 FY25 rose 61.1% year-over-year to ₹156 crores, and PAT surged 90.1% to ₹97 crores; H1 FY25 EBITDA and PAT grew 33.3% and 41.8% respectively.

• 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.

• Robust orderbook across domestic and overseas markets ensures strong revenue visibility.

Financial highlights

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

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

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

• Q2 FY25 gross margin improved by 350 bps to 53.5%; EBITDA margin expanded by 450 bps to 15.1%.

• Consolidated net profit after tax for Q2 FY25 was ₹967 million, up from ₹509 million in Q2 FY24; half-year consolidated net profit was ₹1,623 million, up from ₹1,145 million year-over-year.

Outlook and guidance

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

• Focus on expanding value-added products and subscription services, especially in international subsidiaries.

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

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

• Strong order book and strategic focus expected to support continued growth.