Capitaline

Results 19-Aug-21

Analysis

Kennametal India

Sales up 122%, net turns black

Consolidated net sales (including other operating income) of Kennametal India for the quarter ended June 2021 has increased 122% to Rs 211.9 crore. Operating profit margin (OPM) has turned from negative 13.3% to positive 17.6%, Operating profit for the quarter stood at Rs 37.30 crore compared to loss of Rs 12.70 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 28.15% to 23.47%. Purchase of finished goods cost rose from 29.02% to 29.78%. Employee cost decreased from 28.48% to 13.94%. Other expenses fell from 28.15% to 15.97%. Other income fell 85% to Rs 1.3 crore. PBIDT stood at Rs 38.60 crore compared to loss of Rs 3.8 crore. Provision for interest remained nil against Rs 0.30 crore in the corresponding previous period. PBDT stood at Rs 38.60 crore compared to loss of Rs 4.1 crore. Provision for depreciation fell 2% to Rs 9.4 crore. Profit before tax was a profit of Rs 29.20 crore compared to loss of Rs 13.70 crore. Provision for tax was debit of Rs 7.6 crore, compared to credit of Rs 6.6 crore. Effective tax rate was 26.03% compared to 40.99%. Share of profit/loss were nil in both the periods. Minority interest was nil in both the periods. Eventually thus the net profit was a profit of Rs 21.60 crore compared to loss of Rs 9.50 crore.

Upside in revenue was driven by 154% jump in segment revenue of Hard Metals (HMHMP) to Rs 186.80 crore. The revenue of machine solutions was up 14% to Rs 25.10 crore.

PBIT was a profit of Rs 35.10 crore compared to a loss of Rs 9.60 crore. While HMHMP reported a profit of Rs 32.30 crore (against a loss of Rs 8.60 crore) the segment profit of machine solutions was up at Rs 2.80 crore against a loss of RS 1 crore.

Yearly performance

Consolidated net sales has increased 21% to Rs 853.7 crore. Operating profit margin has jumped from 10.1% to 15.3%, leading to 84% rise in operating profit to Rs 130.80 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 27.51% to 25.84%. Purchase of finished goods cost fell from 27.39% to 27.38%. Employee cost decreased from 16.56% to 14.91%. Other expenses fell from 18.63% to 16.49%.

Other income fell 45% to Rs 6.9 crore. PBIDT rose 65% to Rs 137.7 crore. Provision for interest fell 84% to Rs 0.3 crore. Loan funds remained nil. Inventories declined from Rs 206.20 crore as of 30 June 2020 to Rs 205.10 crore as of 30 June 2021. Sundry debtors were higher at Rs 113.10 crore as of 30 June 2021 compared to Rs 90.60 crore as of 30 June 2020. Cash and bank balance rose to Rs 128.90 crore as of 30 June 2021 from Rs 44.70 crore as of 30 June 2020.

PBDT rose 68% to Rs 137.4 crore. Provision for depreciation rose 10% to Rs 37.9 crore. Fixed assets declined from Rs 278.30 crore as of 30 June 2020 to Rs 276.30 crore as of 30 June 2021. Intangible assets declined from Rs 0.70 crore to Rs 0.50 crore.

Profit before tax grew 111% to Rs 99.50 crore. Extraordinary items were and expense of Rs 1.00 crore, a fall of 80%. Thus PBT after EO was up 134% to Rs 98.50 crore. Provision for tax was expense of Rs 25.2 crore, compared to Rs 9.2 crore. Thus PAT was up 123% to Rs 73.30 crore. PPT was nil compared to an income of RS 1 crore. And thus the PAT was up 116% to Rs 73.30 crore. Share of profit/loss were nil in both the periods. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 116% to Rs 73.30 crore.

Equity capital stood at Rs 22.00 crore as of 30 June 2021 to Rs 22.00 crore as of 30 June 2020. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 75.00% as of 30 June 2021 ,compared to 75.00% as of 30 June 2020 .

Kennametal India : Consolidated Results
	2106 (3)	2006 (3)	Var. (%)	2106 (12)	2006 (12)	Var. (%)
Sales	211.90	95.60	122	853.70	705.00	21
OPM (%)	17.6	-13.3		15.3	10.1
OP	37.30	-12.70	LP	130.80	70.90	84
Other inc.	1.30	8.90	-85	6.90	12.60	-45
PBIDT	38.60	-3.80	LP	137.70	83.50	65
Interest	0.00	0.30	-100	0.30	1.90	-84
PBDT	38.60	-4.10	LP	137.40	81.60	68
Dep.	9.40	9.60	-2	37.90	34.40	10
PBT	29.20	-13.70	LP	99.50	47.20	111
EO Exp	0.00	2.40	-100	1.00	5.10	-80
PBT after EO	29.20	-16.10	LP	98.50	42.10	134
Taxation	7.60	-6.60	PL	25.20	9.20	174
PAT	21.60	-9.50	LP	73.30	32.90	123
PPT	0.00	0.00		0.00	-1.00	-100
Net profit	21.60	-9.50	LP	73.30	33.90	116
EPS (Rs)*	#	#		33.7	16.8
* EPS is on current equity of Rs 21.98 crore, Face value of Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

Kennametal India: Segment Results
Segment	% to total	2106 (3)	2006 (3)	Var. (%)	% to total	2106 (12)	2006 (12)	Var.(%)
Sales
Machine Solutions	12	25.10	22.10	14	13	110.40	148.10	-25
Hard Metal & Hand Metal Products	88	186.80	73.50	154	87	743.30	556.90	33
Total Sales	100	211.90	95.60	122	100	853.70	705.00	21

PBIT
Machine Solutions	8	2.80	-1.00	LP	6	7.00	29.60	-76
Hard Metal & Hand Metal Products	92	32.30	-8.60	LP	94	117.50	43.80	168
Total PBIT	100	35.10	-9.60	LP	100	124.50	73.40	70
Less: Unallocable Expenses/(Income)		5.90	4.00	48		25.00	26.10
PBT before EO		29.20	-13.60	LP		99.50	47.30	110
Less EO			2.40			1.00	5.10
PBT		29.20	-16.00	LP		98.50	42.20
Note: Figures in Rs crore

Previous News

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( Results - Announcements 15-Nov-16 07:53 )

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( Results - Analysis 23-Aug-19 11:37 )

Board of Kennametal India recommends Interim Dividend
( Corporate News - 13-May-21 12:15 )

Kennametal India consolidated net profit rises 126.80% in the March 2021 quarter
( Results - Announcements 13-May-21 08:09 )

Board of Kennametal India recommends Final Dividend
( Corporate News - 12-May-22 09:59 )