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Kirloskar Pneumatic has reported impressive 73% growth in revenue to Rs 107.96 crore. The OPM of the company also improved by huge 590 basis points to 9.7% on the back of 360 bps and 330 bps decline in other expenditure and staff cost to 12% and 12.2% of adjusted net sales and increase in raw material cost by 120 bps to 58.5% of adjusted net sales which partly offset the cost reduction. At the end, after tax outgo of Rs 3.60 crore against Rs 0.38 crore in corresponding previous quarter, the net profit recorded impressive 514% jump to Rs 6.20 crore against Rs 1.01 crore in corresponding previous quarter.
Performance for the quarter ended June 2008
Revenue during the quarter ended June 2008 increased by an impressive 73% to Rs 107.96 crore. OPM increased by huge 590 basis points to 9.7% due to decline in other expenditure by 360 basis points to 12% and 330 bps decline in staff cost by 330 basis points to 12.2% of adjusted net sales. However, the raw material cost increased by 120 basis points to 58.5% to adjusted net sales. As a result the operating profit of the company increased by 342% to Rs 10.52 crore.
The other income of the company increased by 49% to Rs 0.97 crore. The interest cost has declined by 31% to Rs 0.47 crore while the depreciation charges increased by 27% to Rs 1.22 crore The company recorded an increase of 605% in profit before tax to Rs 9.80 crore.
The tax outgo for the quarter stood at Rs 3.60 crore against Rs 0.38 crore in corresponding previous quarter after considering that the net profit increased by an impressive 514% to Rs 6.20 crore against Rs 1.01 crore in corresponding previous quarter.
Performance for the Year ended March 2008
For the year ended March 2008, the net sales of the company have increased by 13% to Rs 402.82 crore. OPM decreased by 100 basis points to 8.7% against 9.7% in FY07. The other income of the company increased 56% to Rs 7.21 crore. The interest cost has decreased by 62% to Rs 1.37 crore while the depreciation allowance increased by 23% to Rs 4.05 crore. After a combined impact of both, the PBT before EO stood at Rs 36.97 crore, an increase of 14%.
The company has no EO item for FY08 but has recorded a EO income of Rs 20.06 crore in FY07 causing a fall in profit before tax after EO item by 29% to Rs 36.97 crore. The tax outgo for FY08 has decreased by 20% to Rs 7.14 crore and at the end the net profit dipped by 31% to Rs 29.83 crore mainly due to EO income in FY07.
Segment Performance
Compression System
For the quarter ended June 2008, the compression system contributed 79% of the total revenue. The revenue from this division increased 65% to Rs 85.80 crore. The PBIT margin saw a jump of 184 basis points to 11.3% causing PBIT to gown by 97% to Rs 9.71 crore contributing 66% of total PBIT.
For the year ended March 2008, the compression system contributed 80% of the total revenue. The revenue from the compression system has increased by 5% to Rs 323.13 crore. The PBIT margin has declined by 110 basis points to 12.8% reflecting a fall in PBIT by 3% to Rs 41.25 crore. This business contributes around 78% of total PBIT.
Transmission Products
For the quarter ended June 2008, the transmission products contributed 21% of the total revenue. The revenue from this business increased huge 117% to Rs 23.02 crore. The PBIT margin has inclined by huge 1690 basis points to 21.3%. As a result, the PBIT has increased by 945% to Rs 4.91 crore contributing 34% of total PBIT.
For the year ended March 2008, the transmission products contributed 20% of the total revenue. The revenue from this business increased 61% to Rs 83.15 crore. The PBIT margin has inclined by 0.67 basis points to 14.1%. As a result, PBIT has gown by 69% to Rs 11.75 crore contributing 22% of total PBIT
Currently the shares of the company are quoting at Rs 392 (LTP on 25th July 2008) at BSE.
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