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Results
12-Aug-23
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Analysis
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Kennametal India
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Sales up 4%, net down 34%
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Standalone net sales
(including other operating income) of Kennametal India for the quarter ended
Jun 2023 has increased 3.98% to Rs 279.30 crore. Strong domestic
demand and focus on strategic priorities helped achieve sales growth, though there
were negative effects from global economic headwinds like foreign exchange,
inflation and a slower recovery in China. Operating profit margin has declined
from 16.87% to 13.07%, leading to 19.43% decline in operating profit to Rs
36.50 crore. Raw material cost as a % of total sales (net of stock
adjustments) decreased from 29.86% to 24.09%. Purchase of finished
goods cost rose from 24.11% to 27.55%. Employee cost increased from
13.39% to 15.94%. Other expenses rose from 16.46% to 17.23%.
Other income fell 22.22% to Rs 1.4 crore. PBIDT fell 19.53% to
Rs 37.9 crore. Provision for interest remained nil. Loan
funds remained nil. Inventories declined from Rs 266.60 crore as of
30 June 2022 to Rs 244.40 crore as of 30 June 2023. Sundry debtors
were higher at Rs 142.00 crore as of 30 June 2023 compared to Rs 136.80 crore
as of 30 June 2022. Cash and bank balance rose to Rs 89.50 crore as
of 30 June 2023 from Rs 64.40 crore as of 30 June 2022. PBDT fell 19.96%
to Rs 37.7 crore. Provision for depreciation rose 22.73% to Rs 10.8
crore. Fixed assets increased to Rs 308.40 crore as of 30 June 2023
from Rs 291.40 crore as of 30 June 2022. Intangible assets declined
from Rs 0.40 crore to Rs 0.30 crore. Profit before tax down 29.77% to Rs
26.90 crore. Provision for tax was expense of Rs 8.2 crore, compared
to Rs 10 crore. Effective tax rate was 30.48% compared to 26.11%.
Profit after tax fell 33.92% to Rs 18.70 crore.
- Sales of Machine Tools(SPM) segment has gone down 2.42%
to Rs 44.30 crore (accounting for 15.86% of total sales). Sales
of Hard Metal & Hard Metal Products segment has gone up 5.29% to Rs
235.00 crore (accounting for 84.14% of total sales).
- Profit before interest, tax and other unallocable items
(PBIT) has slumped 26.05% to Rs 33.50 crore. PBIT of Machine
Tools(SPM) segment fell 37.97% to Rs 4.90 crore (accounting for 14.63% of
total PBIT). PBIT of Hard Metal & Hard Metal Products
segment fell 23.53% to Rs 28.60 crore (accounting for 85.37% of total
PBIT).
- PBIT margin of Machine Tools(SPM) segment fell from
17.40% to 11.06%. PBIT margin of Hard Metal & Hard Metal
Products segment fell from 16.76% to 12.17%. Overall PBIT
margin fell from 16.87% to 11.99%.
Full year
results analysis
Standalone net sales (including other operating income) of Kennametal India
for the fiscal ended Jun 2023 has increased 8.72% to Rs 1,077.10
crore. Operating profit margin has declined from 18.06% to 14.07%,
leading to 15.32% decline in operating profit to Rs 151.50
crore. Raw material cost as a % of total sales (net of stock
adjustments) decreased from 28.36% to 27.58%. Purchase of finished
goods cost rose from 24.30% to 27.30%. Employee cost increased from
14.02% to 14.05%. Other expenses rose from 16.06% to 16.74%.
Other income fell 44.68%
to Rs 5.2 crore. PBIDT fell 16.78% to Rs 156.7
crore. Provision for interest remained nil. Loan funds
remained nil. Inventories declined from Rs 266.60 crore as of 30
June 2022 to Rs 244.40 crore as of 30 June 2023. Sundry debtors were
higher at Rs 142.00 crore as of 30 June 2023 compared to Rs 136.80 crore as of
30 June 2022. Cash and bank balance rose to Rs 89.50 crore as of 30
June 2023 from Rs 64.40 crore as of 30 June 2022.
PBDT fell 16.89% to Rs
156.5 crore. Provision for depreciation rose 8.96% to Rs 38.9
crore. Fixed assets increased to Rs 308.40 crore as of 30 June 2023
from Rs 291.40 crore as of 30 June 2022. Intangible assets declined
from Rs 0.40 crore to Rs 0.30 crore.
Profit before tax down
22.94% to Rs 117.60 crore. Provision for tax was expense of Rs 29.9
crore, compared to Rs 38.5 crore. Effective tax rate was 25.43%
compared to 25.23%.
Profit after tax fell
23.14% to Rs 87.70 crore.
Management Comments :
Commenting on the results, Vijaykrishnan Venkatesan, Managing Director,
Kennametal India said, “Our financial performance for FY23 mirrors the
resilience of the key sectors where we operate. We achieved volume growth,
especially in the Hard Metals segment, though exports were impacted by global
macroeconomic headwinds. Our price realization efforts helped mitigate cost
pressures stemming from commodity inflation. We continued to execute on our
strategic imperatives and saw success from new product innovations and
partnering with customers to deliver value.”
Others
Equity capital stood at
Rs 22.00 crore as of 30 June 2023 to Rs 22.00 crore as of 30 June
2022. Per share face Value remained same at Rs 10.00.
Promoters’ stake was
75.00% as of 30 June 2023 ,compared to 75.00% as of 30 June 2022 .
| Kennametal India : Standalone Results | | Quarter ended | Year ended |
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| Particulars | 202306 | 202206 | Var.(%) | 202306 | 202206 | Var.(%) |
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| Net Sales (including other operating income) | 279.30 | 268.60 | 3.98 | 1,077.10 | 990.70 | 8.72 | | OPM (%) | 13.07 | 16.87 | -380 bps | 14.07 | 18.06 | -399 bps | | OP | 36.50 | 45.30 | -19.43 | 151.50 | 178.90 | -15.32 | | Other Inc. | 1.40 | 1.80 | -22.22 | 5.20 | 9.40 | -44.68 | | PBIDT | 37.90 | 47.10 | -19.53 | 156.70 | 188.30 | -16.78 | | Interest | 0.2 | 0 | - | 0.2 | 0 | - | | PBDT | 37.70 | 47.10 | -19.96 | 156.50 | 188.30 | -16.89 | | Depreciation | 10.8 | 8.8 | 22.73 | 38.9 | 35.7 | 8.96 | | PBT | 26.90 | 38.30 | -29.77 | 117.6 | 152.6 | -22.94 | | PBT before EO | 26.9 | 38.3 | -29.77 | 117.6 | 152.6 | -22.94 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 26.9 | 38.3 | -29.77 | 117.6 | 152.6 | -22.94 | | Taxation | 8.2 | 10 | -18.00 | 29.9 | 38.5 | -22.34 | | PAT | 18.7 | 28.3 | -33.92 | 87.7 | 114.1 | -23.14 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 18.7 | 28.3 | -33.92 | 87.7 | 114.1 | -23.14 | | EPS (Rs)* | 8.51 | 12.88 | -33.92 | 39.90 | 51.92 | -23.14 | | | * 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 |
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| Kennametal India : Standalone Segment Results | | | Quarter ended | Year ended |
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| % of (Total) | 202306 | 202206 | Var.(%) | % of (Total) | 202206 | 202106 | Var.(%) |
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| Sales | | Machine Tools(SPM) | 15.86 | 44.30 | 45.40 | -2.42 | 14.79 | 146.50 | 110.40 | 32.70 | | Hard Metal & Hard Metal Products | 84.14 | 235.00 | 223.20 | 5.29 | 85.21 | 844.20 | 701.00 | 20.43 | | Total Reported Sales | 100.00 | 279.30 | 268.60 | 3.98 | 100.00 | 990.70 | 811.40 | 22.10 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 279.30 | 268.60 | 3.98 | 100.00 | 990.70 | 811.40 | 22.10 | | PBIT | | Machine Tools(SPM) | 14.63 | 4.90 | 7.90 | -37.97 | 11.55 | 20.60 | 7.00 | 194.29 | | Hard Metal & Hard Metal Products | 85.37 | 28.60 | 37.40 | -23.53 | 88.45 | 157.80 | 107.30 | 47.06 | | Total PBIT | 100.00 | 33.50 | 45.30 | -26.05 | 100.00 | 178.40 | 114.30 | 56.08 | | Less : Interest | | 0.20 | 0.00 | - | | 0.00 | 0.00 | - | | Add: Other un-allcoable | | -6.40 | -7.00 | 8.57 | | -25.80 | -24.90 | -3.61 | | PBIT Margin(%) | | Machine Tools(SPM) | | 11.06 | 17.40 | -633.99 | | 14.06 | 6.34 | 772.09 | | Hard Metal & Hard Metal Products | | 12.17 | 16.76 | -458.61 | | 18.69 | 15.31 | 338.55 | | PBT | 100.00 | 26.90 | 38.30 | -29.77 | 100.00 | 152.60 | 89.40 | 70.69 |
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