Kirloskar Brothers (500241) Q4 23/24 earnings summary

Executive summary

• Consolidated revenue grew 7% year-over-year to ₹40,012 million, driven by robust growth across end-use segments and improved product mix.

• EBITDA surged 36% to ₹5,783 million, with margin expansion to 14.5%, and PAT increased 48% to ₹3,497 million, reflecting strong operational performance.

• The company maintained a net debt-free status, supported by prudent cash flow management and a strong balance sheet.

• Strategic focus on high-margin contracts, digital transformation, and sustainability initiatives underpinned performance.

Financial highlights

• Revenue from operations: ₹40,012 million in FY 2023-24 vs ₹37,302 million in FY 2022-23 (7% growth).

• EBITDA: ₹5,783 million vs ₹4,263 million (36% growth); EBITDA margin at 14.5%.

• PAT: ₹3,497 million vs ₹2,358 million (48% growth); PAT margin at 8.7%.

• EPS: ₹43.84 vs ₹29.59 year-over-year.

• ROCE: 26.4% (up from 18.0%); ROE: 18.06% (up from 14.00%).

• Dividend proposed: ₹6 per share (300% of face value), up from ₹4.5 per share last year.

Outlook and guidance

• Healthy order book for made-to-order and engineered-to-order products supports future growth.

• Focus on expanding high-margin segments, digitalisation, and sustainability to drive profitability.

• Targeting renewable energy to contribute up to 70% of electricity consumption by FY 2025-26.

• Continued investment in R&D, digital transformation, and global market expansion.