|
Kirloskar Brothers (KBL), one of the leading players in the Indian pump market has turned in a strong performance for the quarter ended Sep 2012 with its standalone earnings grew by whopping 399% (to 14.75 crore) on a sales of Rs 476.93 crore, which was up by 16%. Strong jump in net profit is largely facilitated by higher sales together with 280 bps expansion in operating margin.
On a low base, the sales were higher by 16% to Rs 476.93 crore even while the value of production for the quarter was higher by just 9% to Rs 461.09 crore. This shows the company has liquidated significant part of accumulated inventory during the quarter and the Q2FY13 presentation quotes there was reduction in inventory to the extent of Rs 19 crore in Q2FY13. This has pushed up the sales as well as margin.
Operating margin expanded by 280 bps to 7.7% and this was facilitated by product project mix with former accounting for greater share this quarter. Moreover with liquidation of prior period inventory the margin gained significantly. Bought out item cost as proportion to sales net of stocks, was lower by 490 bps to 20.2% even while other cost heads have seen significant rise. While material cost was higher by 40 bps to 51.3%, staff cost was up by 80 bps to 8.6% and other expenses was up by 40 bps to 12%.
Other income was lower by 43% to Rs 3.20 crore. The interest cost was lower by 19% to Rs 11.82 crore. The depreciation was higher by 3% to Rs 8.07 crore. Spurred thus PBT grew by whopping 550% to Rs 19.88 crore.
EO income was nil for the quarter as well as corresponding previous period. The taxation was lower by at Rs 5.12 crore compared to mere Rs 0.10 crore in the corresponding previous period. Thus the net profit was up by 399% to Rs 14.75 crore.
Half yearly performance
Standalone sales was higher by 9% to Rs 919.09 crore and operating profit was higher by 34% to Rs 65.19 crore on the back of sharp 130 bps expansion in OPM as well higher sales. The PBT was higher by 112% to Rs 31.10 crore. EO income for the period was nil compared to Rs 35.06 crore on account of profit on sale of investments. Thus on an escalated high base the PBT after EO was lower by 37% to Rs 31.10 crore. After accounting for taxation of Rs 7.32 crore (down 31%)the net profit was lower by 39% to Rs 23.78 crore.
Order book
Consolidated Order book as end of Sep 2012 was RS 2645 crore compared to Rs 2809 crore as end of Q1FY13. Consolidated Order inflow in Q2FY13 is Rs 519 crore as compared to Rs 620 crore in corresponding previous quarter.
The stock hovers around Rs 164.35.
|