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The net revenue of compression systems and transmission products major Kirloskar Pneumatic during Q4 FY09 dipped 7% Y-o-Y to Rs 158.15 crore, showing effects of slowdown in demand across the economy. The sales fell down as compression system revenue declined 2% contributing 82% of the total sales while transmission products was down 20% contributing 18% of the total revenues in the quarter. However, the OPM improved 160 bps to 15.5%. The tax provision for the quarter stood 62% higher at Rs 7.94 crore while effective tax rate increased from 20.1% to 33.0%. The higher taxes dented the net profit, which stood 15% lower at Rs 16.92 crore.
Performance for the quarter ended March 2009
Revenue during the quarter ended March 2009 decreased by 7% Y-o-Y to Rs 158.15 crore, showing effects of slowdown in demand across the economy. The sales fell down as compression system revenue declined 2% contributing 82% of the total sales while transmission products was down 20% contributing 18% of the total revenues in the quarter. However, the OPM improved 160 bps to 15.5%. Cost of raw material consumed as a percentage of net adjusted salesrose 440 bps to 59.9% while manufacturing expenses, staff cost and other expenses has come down by 50 bps, 160 bps and 230 bps to 6.8%, 7.3% and 11.0% of adjusted net revenue. As a result the operating profit of the company increased 4% to Rs 24.58 crore.
Other income of the company dipped 45% to Rs 1.52 crore and interest cost declined by 25% to Rs 0.71 crore while depreciation charges rose 30 to Rs 1.4 crore, after considering which PBT declined marginally by 1% to Rs 23.99 crore. The tax provision for the quarter stood at Rs 7.94 crore against Rs 4.89 crore in corresponding previous quarter (effective tax rate has increased from 20.1% to 33.0%), after considering which the net profit stood 15% lower at Rs 16.92 crore.
Segment Performance
Compression System
For the quarter ended March 2009, the compression system contributed 82% of the total revenue. The revenue from this division decreased 2% to Rs 131.34 crore. The PBIT margin saw a decent jump of 220 basis points to 18.5% causing PBIT to gown by 11% to Rs 24.34 crore contributing 79% of total PBIT.
Transmission Products
For Q4 FY09, the transmission products contributed just 18% of the total revenue. The revenue from this business has dipped by 20% to Rs 28.18 crore. The PBIT margin increased 480 basis points to 23.4% causing PBIT to inch up by 1% to Rs 6.59 crore contributing 21% of total PBIT.
Performance for the Year ended March 2009
For the year ended March 2009, the net sales of the company have increased by 29% to Rs 518.48 crore. OPM improved 350 bps to 12.2% against 8.7% in corresponding previous year. The other income for the year decreased 13% to Rs 7.25 crore (Rs 8.37 crore). The interest cost has diminished 6% to Rs 2.37 crore and depreciation charges have increased by 30% Y-o-Y to Rs 5.28 crore, after considering which, the PBT stood at Rs 62.61 crore, an increase of 69%.
The tax provision for the year was at Rs 21.76 crore, 205% higher Y-o-Y (effective tax rate over PBT has jumped up from 19.3% to 34.8%) and at the end the net profit for the year stood at Rs 41.72 crore, 37% higher on Y-o-Y against Rs 30.46 crore in corresponding previous year.
Currently the shares of the company are quoting at Rs 243 (LTP on 29th April 2009) at BSE.
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