Consolidated net sales
(including other operating income) of Kirloskar Oil Engines for the quarter
ended Mar 2023 has increased 17.08% to Rs 1383.83 crore. Operating
profit margin has jumped from 12.14% to 13.59%, leading to 31.09% rise in
operating profit to Rs 188.03 crore. Raw material cost as a % of
total sales (net of stock adjustments) decreased from 45.66% to 44.43%.
Purchase of finished goods cost fell from 18.44% to 16.86%.
Employee cost increased from 6.52% to 6.89%. Other
expenses rose from 17.02% to 18.41%. Other income rose 34.10% to Rs
10.46 crore. PBIDT rose 31.24% to Rs 198.49
crore. Provision for interest rose 81.37% to Rs 63.97
crore. PBDT rose 16% to Rs 134.52 crore. Provision for
depreciation rose 3.08% to Rs 26.12 crore. Profit before tax grew
19.61% to Rs 108.40 crore. Share of profit/loss was 28.12% higher at
Rs 0.41 crore. Provision for tax was expense of Rs 29.9 crore,
compared to Rs 23.12 crore. Effective tax rate was 27.48% compared
to 25.42%. Minority interest was nil in both the periods. Net profit
attributable to owners of the company increased 13.82% to Rs 78.91
crore.
Sales of Financial Services segment has gone up 75.69% to Rs 112.88 crore
(accounting for 8.16% of total sales). Sales of B2B segment has gone
up 16.43% to Rs 1,000.06 crore (accounting for 72.27% of total
sales). Sales of B2C segment has gone up 4.70% to Rs 270.89 crore
(accounting for 19.58% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has
slumped 15.96% to Rs 103.63 crore. PBIT of Financial Services
segment fell 57.72% to Rs 16.64 crore (accounting for 16.06% of total
PBIT). PBIT of B2B segment fell 16.10% to Rs 75.43 crore (accounting
for 72.79% of total PBIT). PBIT of B2C reported profit of Rs 11.56 crore
compared to loss of Rs 5.95 crore.
PBIT margin of Financial Services segment fell from 61.26% to
14.74%. PBIT margin of B2B segment fell from 10.47% to
7.54%. PBIT margin of B2C segment rose from negative 2.30% to
4.27%. Overall PBIT margin fell from 10.43% to 7.49%.
Full year results analysis.
Net sales (including other operating income) of Kirloskar Oil Engines has
increased 24.91% to Rs 5023.8 crore. Sales of Financial Services
segment has gone up 84.03% to Rs 370.79 crore (accounting for 7.38% of total
sales). Sales of B2B segment has gone up 27.12% to Rs 3,582.14 crore
(accounting for 71.30% of total sales). Sales of B2C segment has
gone up 6.82% to Rs 1,070.87 crore (accounting for 21.32% of total
sales).
Profit before interest, tax and other unallocable items (PBIT) has
jumped 88.94% to Rs 447.85 crore. PBIT of Financial Services segment
rose 101.54% to Rs 82.27 crore (accounting for 18.37% of total
PBIT). PBIT of B2B segment rose 65.04% to Rs 336.49 crore
(accounting for 75.13% of total PBIT). PBIT of B2C reported profit
of Rs 29.09 crore compared to loss of Rs 7.68 crore.
PBIT margin of Financial Services segment rose from 20.26% to
22.19%. PBIT margin of B2B segment rose from 7.24% to
9.39%. PBIT margin of B2C segment rose from negative 0.77% to
2.72%. Overall PBIT margin rose from 5.89% to 8.91%.
Operating profit margin
has jumped from 10.25% to 14.61%, leading to 78.10% rise in operating profit to
Rs 734.02 crore. Raw material cost as a % of total sales (net of
stock adjustments) decreased from 46.96% to 46.20%. Purchase of
finished goods cost fell from 18.56% to 16.27%. Employee cost
decreased from 7.11% to 6.69%. Other expenses fell from 17.10% to
16.39%.
Other income rose 5.46% to Rs 28.19 crore. PBIDT rose
73.67% to Rs 762.21 crore. Provision for interest rose 97.95% to Rs 209.89
crore. PBDT rose 65.94% to Rs 552.32 crore. Provision
for depreciation rose 3.33% to Rs 104.66 crore. Profit before tax
grew 93.32% to Rs 447.66 crore. Share of profit/loss was 296.88%
higher at Rs 1.27 crore. Provision for tax was expense of Rs 117.28
crore, compared to Rs 61.01 crore. Effective tax rate was 26.12%
compared to 26.31%. Minority interest increased 79.45% to Rs -0.75
crore. Net profit attributable to owners of the company increased
90.47% to Rs 332.40 crore.
Other developments
The Parent Company consistently
recognizes provision for any significantly delayed receivables, for accounting
of expected credit losses. Provision for doubtful debts and advances for the
period includes a provision of Rs. 28.09 Crores in respect of receivables
against sales of Gensets to a customer made FY 2021-22. While the Parent
company is in active discussions with the customer for the payment, the
aforesaid provision has been recognised as per the consistent policy of the
Parent company for accounting of expected credit losses.
Management comment
Commenting on the Q4 and full-year
results, Gauri Kirloskar, Managing Director, KOEL, said "This was another
strong quarter for KOEL. We surpassed standalone revenue of 1,000 crores for
the third consecutive quarter. Our B2B segment grew at 17% for the quarter on
strong demand in Powergen and Industrial business. Furthermore, t he B2C
segment has shown 14% growth for the quarter. Our overall annual revenue
increased by 25%, aligning well with the pace set by our 2X-3Y strategy. As
outlined, we remain committed to focusing on five crucial pillars: core growth,
technology, channel, operations excellence, and people. We are witnessing
progress in each of these areas, with some already delivering positive outcomes
and others expected to do so in t he near future. The immediate focus for us is
on the CPCB 4+ transition and we are progressing well. As I assess the
advancements made on these pillars this year, my confidence in our capabilities
continues to grow."
Others
The Board of Directors in it s meeting
held on 19th May 2023, has recommended a final Dividend of Rs. 2.50/- (125%)
per equity share of Rs. 2/- each for the Financial Year 2022-23, subject to
shareholder`s approval. This takes t he full-year dividend at Rs. 5.00/ (250%)
per share.
Equity capital increased from Rs 28.92 crore as of 31 March 2022
to Rs 28.95 crore as of 31 March 2023. Per share face Value remained
same at Rs 2.00.
Promoters’ stake was 41.25% as of 31 March 2023 ,compared to
59.44% as of 31 March 2022 .
Loan funds rose to Rs 3,244.25 crore as of 31 March 2023 from Rs
1,964.66 crore as of 31 March 2022. Inventories rose to Rs 544.98
crore as of 31 March 2023 from Rs 388.05 crore as of 31 March
2022. Sundry debtors were higher at Rs 527.73 crore as of 31 March
2023 compared to Rs 468.77 crore as of 31 March 2022. Cash and bank
balance rose to Rs 290.47 crore as of 31 March 2023 from Rs 174.04 crore as of
31 March 2022. Investments declined from Rs 737.91 crore as of 31
March 2022 to Rs 658.18 crore as of 31 March 2023. Fixed assets
declined from Rs 578.47 crore as of 31 March 2022 to Rs 571.31 crore as of 31
March 2023. Intangible assets stood at Rs 185.76 crore.
Cash flow from operating activities increased to negative Rs
-920.30 crore for year ended March 2023 from negative Rs -1,040.69 crore for
year ended March 2022. Cash flow used in acquiring fixed assets
during the year ended March 2023 stood at Rs 161.47 crore, compared to Rs
125.60 crore during the year ended March 2022. | Kirloskar Oil Engines : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202303 | 202203 | Var.(%) | 202303 | 202203 | Var.(%) |
|---|
| Net Sales (including other operating income) | 1,383.83 | 1,181.95 | 17.08 | 5,023.80 | 4,021.98 | 24.91 | | OPM (%) | 13.59 | 12.14 | 145 bps | 14.61 | 10.25 | 436 bps | | OP | 188.03 | 143.44 | 31.09 | 734.02 | 412.15 | 78.10 | | Other Inc. | 10.46 | 7.80 | 34.10 | 28.19 | 26.73 | 5.46 | | PBIDT | 198.49 | 151.24 | 31.24 | 762.21 | 438.88 | 73.67 | | Interest | 63.97 | 35.27 | 81.37 | 209.89 | 106.03 | 97.95 | | PBDT | 134.52 | 115.97 | 16.00 | 552.32 | 332.85 | 65.94 | | Depreciation | 26.12 | 25.34 | 3.08 | 104.66 | 101.29 | 3.33 | | PBT | 108.40 | 90.63 | 19.61 | 447.66 | 231.56 | 93.32 | | Share of Profit/(Loss) from Associates | 0.41 | 0.32 | 28.12 | 1.27 | 0.32 | 296.88 | | PBT before EO | 108.81 | 90.95 | 19.64 | 448.93 | 231.88 | 93.60 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 108.81 | 90.95 | 19.64 | 448.93 | 231.88 | 93.60 | | Taxation | 29.9 | 23.12 | 29.33 | 117.28 | 61.01 | 92.23 | | PAT | 78.91 | 67.83 | 16.33 | 331.65 | 170.87 | 94.09 | | Minority Interest (MI) | 0 | -1.5 | - | -0.75 | -3.65 | 79.45 | | Net profit | 78.91 | 69.33 | 13.82 | 332.4 | 174.52 | 90.47 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 78.91 | 69.33 | 13.82 | 332.4 | 174.52 | 90.47 | | EPS (Rs)* | 5.45 | 4.79 | 13.82 | 22.96 | 12.05 | 90.47 | | | * EPS is on current equity of Rs 28.96 crore, Face value of Rs 2, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
|
| Kirloskar Oil Engines : Consolidated Segment Results | | | Quarter ended | Year ended |
|---|
| % of (Total) | 202303 | 202203 | Var.(%) | % of (Total) | 202303 | 202203 | Var.(%) |
|---|
| Sales | | Engines | 0.00 | 0.00 | 0.00 | - | | Electric Pumps | 0.00 | 0.00 | 0.00 | - | | Others | 0.00 | 0.00 | 0.00 | - | | Financial Services | 8.16 | 112.88 | 64.25 | 75.69 | 7.38 | 370.79 | 201.48 | 84.03 | | B2B | 72.27 | 1,000.06 | 858.97 | 16.43 | 71.30 | 3,582.14 | 2,818.01 | 27.12 | | B2C | 19.58 | 270.89 | 258.73 | 4.70 | 21.32 | 1,070.87 | 1,002.49 | 6.82 | | Total Reported Sales | 100.00 | 1,383.83 | 1,181.95 | 17.08 | 100.00 | 5,023.80 | 4,021.98 | 24.91 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 1,383.83 | 1,181.95 | 17.08 | 100.00 | 5,023.80 | 4,021.98 | 24.91 | | PBIT | | Engines | 0.00 | 0.00 | 0.00 | - | | Electric Pumps | 0.00 | 0.00 | 0.00 | - | | Others | 0.00 | 0.00 | 0.00 | - | | Financial Services | 16.06 | 16.64 | 39.36 | -57.72 | 18.37 | 82.27 | 40.82 | 101.54 | | B2B | 72.79 | 75.43 | 89.90 | -16.10 | 75.13 | 336.49 | 203.89 | 65.04 | | B2C | 11.16 | 11.56 | -5.95 | LP | 6.50 | 29.09 | -7.68 | LP | | Total PBIT | 100.00 | 103.63 | 123.31 | -15.96 | 100.00 | 447.85 | 237.03 | 88.94 | | Less : Interest | | 2.23 | 35.27 | -93.68 | | 13.73 | 14.29 | -3.92 | | Add: Other un-allcoable | | 7.41 | 2.91 | 154.64 | | 14.81 | 9.14 | 62.04 | | PBIT Margin(%) | | Engines | | 0.00 | 0.00 | 0.00 | | Electric Pumps | | 0.00 | 0.00 | 0.00 | | Others | | 0.00 | 0.00 | 0.00 | | Financial Services | | 14.74 | 61.26 | -4,651.94 | | 22.19 | 20.26 | 192.77 | | B2B | | 7.54 | 10.47 | -292.35 | | 9.39 | 7.24 | 215.83 | | B2C | | 4.27 | -2.30 | 656.71 | | 2.72 | -0.77 | 348.26 | | PBT | 100.00 | 108.81 | 90.95 | 19.64 | 100.00 | 448.93 | 231.88 | 93.60 |
|
|