Kirloskar Brothers (500241) Q3 24/25 earnings summary

Executive summary

• Consolidated revenues grew 19% YoY in Q3 FY25 to INR 1,144 crore (₹11,442 million), and 16% YoY for nine months to INR 3,211 crore (₹32,109 million), reflecting strong demand across domestic and international markets.

• EBITDA rose 32% YoY in Q3 to INR 183 crore, with margin expansion to 16%, and 33% YoY for nine months to INR 466 crore, margin at 14.5%.

• PAT increased 43.9% YoY in Q3 to INR 119 crore (₹1,185 million) and 42.7% YoY for nine months to INR 281 crore (₹2,809 million).

• International business saw 46% YoY growth in Q3 and 23% for nine months, led by SPP U.K. and Dutch entities, with foreign subsidiaries generating ₹4,716 million in Q3 FY25.

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

Financial highlights

• Q3 consolidated revenue: INR 1,144 crore (+18.6% YoY); nine months: INR 3,211 crore (+15.6% YoY).

• Q3 EBITDA: INR 183 crore (+32.3% YoY), margin 16% (+170 bps YoY); nine months EBITDA: INR 466 crore (+32.9% YoY), margin 14.5% (+190 bps YoY).

• Q3 PAT: INR 119 crore (+43.9% YoY); nine months PAT: INR 281 crore (+42.7% YoY).

• Standalone domestic revenue in Q3: INR 661 crore (₹6,605 million), net profit at ₹582 million.

• EPS for 9M FY25 at 35.02 (up from 24.67 YoY); standalone EPS for Q3 FY25 was ₹7.34, consolidated EPS was ₹14.76.

Outlook and guidance

• Guidance maintained for double-digit revenue growth in FY25 for standalone business.

• Strategic focus on value-added products, digital services, and geographic expansion, with emphasis on recurring revenue streams.

• Strong order book and strategic focus position the company for continued growth.

• International and domestic businesses both targeting double-digit growth.

• Management and auditors did not note any material misstatements or issues, indicating stable financial reporting and compliance.