Capitaline

Results 12-Nov-22

Analysis

Kennametal India

Net up 11% largely on lower tax

Consolidated net sales (including other operating income) of Kennametal India for the quarter ended Sep 2022 has increased 12.55% to Rs 267.3 crore. operating profit margin has declined from 19.03% to 17.51%, leading to 3.54% rise in operating profit to Rs 46.80 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 26.91% to 30.58%. Purchase of finished goods cost rose from 24.94% to 25.04%. Employee cost decreased from 13.66% to 12.07%. Other expenses fell from 16.28% to 16.12%. Other income fell 33.33% to Rs 1.2 crore. PBIDT rose 2.13% to Rs 48 crore. Provision for interest remained nil. PBDT rose 2.13% to Rs 48 crore. Provision for depreciation fell 3.26% to Rs 8.9 crore. Profit before tax grew 3.44% to Rs 39.10 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 7.6 crore, compared to Rs 9.5 crore. Effective tax rate was 19.44% compared to 25.13%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 11.31% to Rs 31.50 crore.

Sales of Maching Solutions segment has gone up 25.25% to Rs 37.20 crore (accounting for 13.92% of total sales). Sales of Hard Metal and Hard Metal Products segment has gone up 10.73% to Rs 230.10 crore (accounting for 86.08% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 6.29% to Rs 47.30 crore. PBIT of Maching Solutions segment fell 11.76% to Rs 3.00 crore (accounting for 6.34% of total PBIT). PBIT of Hard Metal and Hard Metal Products segment rose 7.79% to Rs 44.30 crore (accounting for 93.66% of total PBIT).

PBIT margin of Maching Solutions segment fell from 11.45% to 8.06%. PBIT margin of Hard Metal and Hard Metal Products segment fell from 19.78% to 19.25%. Overall PBIT margin fell from 18.74% to 17.70%.

Kennametal India : Consolidated Results

	Quarter ended			Year ended
Particulars	202209	202109	Var.(%)	202206	202106	Var.(%)
Net Sales (including other operating income)	267.30	237.50	12.55	990.70	853.70	16.05
OPM (%)	17.51	19.03	-152 bps	18.06	15.32	274 bps
OP	46.80	45.20	3.54	178.90	130.80	36.77
Other Inc.	1.20	1.80	-33.33	9.40	6.90	36.23
PBIDT	48.00	47.00	2.13	188.30	137.70	36.75
Interest	0	0	-	0	0.30	-
PBDT	48.00	47.00	2.13	188.30	137.40	37.05
Depreciation	8.9	9.2	-3.26	35.7	37.9	-5.80
PBT	39.10	37.80	3.44	152.6	99.5	53.37
Share of Profit/(Loss) from Associates	0	0	-	0	0	-
PBT before EO	39.1	37.8	3.44	152.6	99.5	53.37
EO Income	0	0	-	0	-1	-
PBT after EO	39.1	37.8	3.44	152.6	98.5	54.92
Taxation	7.6	9.5	-20.00	38.5	25.2	52.78
PAT	31.5	28.3	11.31	114.1	73.3	55.66
Minority Interest (MI)	0	0	-	0	0	-
Net profit	31.5	28.3	11.31	114.1	73.3	55.66
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	31.5	28.3	11.31	114.1	73.3	55.66
EPS (Rs)*	14.33	12.88	11.31	51.92	33.69	54.11

* EPS is on current equity of Rs 21.98 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Kennametal India : Consolidated Segment Results

	Quarter ended				Year ended
	% of (Total)	202209	202109	Var.(%)	% of (Total)	202206	202106	Var.(%)
Sales
Maching Solutions	13.92	37.20	29.70	25.25	14.79	146.50	110.40	32.70
Hard Metal and Hard Metal Products	86.08	230.10	207.80	10.73	85.21	844.20	743.30	13.57
Total Reported Sales	100.00	267.30	237.50	12.55	100.00	990.70	853.70	16.05
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00	-
Net Sales	100.00	267.30	237.50	12.55	100.00	990.70	853.70	16.05
PBIT
Maching Solutions	6.34	3.00	3.40	-11.76	11.55	20.60	7.00	194.29
Hard Metal and Hard Metal Products	93.66	44.30	41.10	7.79	88.45	157.80	117.50	34.30
Total PBIT	100.00	47.30	44.50	6.29	100.00	178.40	124.50	43.29
Less : Interest		0.00	0.00	-		0.00	0.00	-
Add: Other un-allcoable		-8.20	-6.70	-22.39		-25.80	-26.00	0.77
PBIT Margin(%)
Maching Solutions		8.06	11.45	-338.33		14.06	6.34	772.09
Hard Metal and Hard Metal Products		19.25	19.78	-52.61		18.69	15.81	288.44
PBT	100.00	39.10	37.80	3.44	100.00	152.60	98.50	54.92

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