Kirloskar Pneumatic (505283) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 standalone sales rose 10% YoY to ₹340.03 crore; delayed package shipments made execution lumpy, with management expecting a record Q4 and FY25 growth above 20%.

• Order book stood at ₹1,879 crore on Jan. 1, 2025, up 27% from Apr. 1; management said it supports planned growth through FY26 and a ₹2,000 crore sales target next year.

• 9M FY25 revenue exceeded ₹1,000 crore for the first time; order bookings topped ₹1,500 crore, and PBT reached ₹175.91 crore.

• First consolidated results include Systems & Components India Private Limited from its acquisition on Dec. 4, 2024; the subsidiary contributed 25 days of results.

Financial highlights

• Standalone Q3 revenue was ₹340.03 crore versus ₹308.52 crore YoY; PBT was ₹48.05 crore versus ₹46.82 crore, and net profit was ₹35.99 crore versus ₹34.94 crore.

• 9M total income was ₹1,062.51 crore versus ₹846.13 crore; consolidated revenue from operations was ₹1,048.57 crore.

• 9M EBITDA was ₹198 crore, up 60% YoY, with an 18.6% margin versus 14.7%.

• Standalone 9M revenue was ₹1,045.97 crore versus ₹832.66 crore; PBT was ₹175.91 crore versus ₹97.17 crore, and net profit was ₹130.42 crore versus ₹73.07 crore.

• Q3 raw material costs were 51.8% of sales versus 51.9% YoY; 9M raw material-to-sales ratio improved 1.7%, while staff and other expenses increased.

Outlook and guidance

• Management expects record Q4 sales and FY25 growth above 20%, with delayed large packages scheduled for shipment in Q4.

• FY26 sales target is ₹2,000 crore; management expects 20%+ growth to continue, while Process Gas growth is expected below 20%.

• Net working capital was ₹297 crore, or ~17% of sales; targets are ~15% by Mar. 30, 2025, then 12% and eventually single digits.

• Standard equipment ships in ~16 weeks and large packages take 8–12 months; ~₹400 crore of current orders could ship in FY27 Q1 or Q2.