Kirloskar Oil Engines (KIRLOSENG) Q1 24/25 earnings summary

Executive summary

• Achieved record Q1 consolidated revenue of ₹1,636 crore, up 6% year-on-year, with standalone revenue at ₹1,343 crore and consolidated net profit up 25% to ₹157 crore.

• Standalone net profit rose 30% year-on-year to ₹135 crore; PAT margin improved to 10%.

• All business units except farm mechanization posted double-digit growth (excluding pre-buy effect), with strong B2B and B2C segment performance.

• Board approved a ₹700 crore capacity expansion at Kagal plant over three years, targeting increased demand.

• International business grew 23% year-on-year, and financial services segment delivered robust growth.

Financial highlights

• Standalone EBITDA margin improved to 14.7% (including provision reversal), with EBITDA up 28% year-on-year.

• Net cash and equivalents at ₹410 crore at Q1 end, up from ₹112 crore year-on-year.

• Consolidated profit before tax was ₹211.41 crore, up from ₹170.01 crore year-on-year.

• Financial services segment revenue grew 27% year-on-year to ₹163 crore, with AUM at ₹5,768 crore.

• Basic EPS for the quarter was ₹9.29 standalone and ₹10.99 consolidated, both higher than the previous year.

Outlook and guidance

• Management remains committed to the 2X3Y strategy and $2 billion revenue ambition by FY2030.

• Capacity expansion at Kagal plant to be completed in three years, funded through internal accruals and borrowings.

• Cautiously optimistic outlook for the next quarter as the market transitions to fully CPCB IV+ compliant products.

• Focus remains on high horsepower, international, and aftermarket growth.

• Strategy pillars include growth, channel expansion, technology, operational excellence, and talent development.