Capitaline

Results 04-Feb-22

Analysis

Kennametal India

Sales up 10%, Net up 85%

Consolidated net sales (including other operating income) of Kennametal India has increased 10.24% to Rs 239 crore. Operating profit margin has jumped from 14.39% to 19.25%, leading to 47.44% rise in operating profit to Rs 46.00 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 25.51% to 28.15%. Purchase of finished goods cost fell from 27.36% to 24.00%. Employee cost decreased from 14.63% to 13.94%. Other expenses fell from 17.35% to 15.54%. Other income rose 250% to Rs 3.5 crore. PBIDT rose 53.73% to Rs 49.5 crore. Provision for interest remained nil. PBDT rose 54.21% to Rs 49.5 crore. Provision for depreciation fell 6.32% to Rs 8.9 crore. Profit before tax grew 79.65% to Rs 40.60 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 10 crore, compared to Rs 6.1 crore. Effective tax rate was 24.63% compared to 26.99%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 85.45% to Rs 30.60 crore.

Sales of Maching Solutions segment has gone up 32.95% to Rs 34.70 crore (accounting for 14.52% of total sales). Sales of Hard Metal and Hard Metal Products segment has gone up 7.13% to Rs 204.30 crore (accounting for 85.48% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 60.69% to Rs 46.60 crore. PBIT of Maching Solutions segment rose 657.14% to Rs 5.30 crore (accounting for 11.37% of total PBIT). PBIT of Hard Metal and Hard Metal Products segment rose 45.94% to Rs 41.30 crore (accounting for 88.63% of total PBIT).

PBIT margin of Maching Solutions segment rose from 2.68% to 15.27%. PBIT margin of Hard Metal and Hard Metal Products segment rose from 14.84% to 20.22%. Overall PBIT margin rose from 13.38% to 19.50%.

Half-yearly performance

Net sales (including other operating income) of Kennametal India has increased 15.12% to Rs 476.5 crore. Sales of Machining solutions segment has gone up 20.83% to Rs 64.40 crore (accounting for 13.52% of total sales). Sales of Hard metal and hard metal products segment has gone up 14.28% to Rs 412.10 crore (accounting for 86.48% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 65.64% to Rs 91.10 crore. PBIT of Machining solutions segment rose 357.89% to Rs 8.70 crore (accounting for 9.55% of total PBIT). PBIT of Hard metal and hard metal products segment rose 55.18% to Rs 82.40 crore (accounting for 90.45% of total PBIT).

PBIT margin of Machining solutions segment rose from 3.56% to 13.51%. PBIT margin of Hard metal and hard metal products segment rose from 14.73% to 20.00%. Overall PBIT margin rose from 13.29% to 19.12%.

Operating profit margin has jumped from 14.16% to 19.14%, leading to 55.63% rise in operating profit to Rs 91.20 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 26.35% to 27.54%. Purchase of finished goods cost fell from 26.09% to 24.47%. Employee cost decreased from 15.30% to 13.80%. Other expenses fell from 17.18% to 15.90%. Other income rose 120.83% to Rs 5.3 crore. PBIDT rose 58.20% to Rs 96.5 crore. Provision for interest remained nil. PBDT rose 58.98% to Rs 96.5 crore. Provision for depreciation fell 5.24% to Rs 18.1 crore. Profit before tax grew 88.46% to Rs 78.40 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 19.5 crore, compared to Rs 10.9 crore. Effective tax rate was 24.87% compared to 26.85%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 98.32% to Rs 58.90 crore.

Other developments

Promoters’ stake was 75.00% as of 31 December 2021 ,compared to 75.00% as of 31 December 2020 .

Equity capital stood at Rs 22.00 crore as of 31 December 2021 to Rs 22.00 crore as of 31 December 2020. Per share face Value remained same at Rs 10.00.

Loan funds remained nil. Inventories rose to Rs 242.60 crore as of 31 December 2021 from Rs 170.80 crore as of 31 December 2020. Sundry debtors were higher at Rs 130.30 crore as of 31 December 2021 compared to Rs 128.40 crore as of 31 December 2020. Cash and bank balance rose to Rs 127.70 crore as of 31 December 2021 from Rs 93.20 crore as of 31 December 2020. Fixed assets declined from Rs 279.00 crore as of 31 December 2020 to Rs 265.20 crore as of 31 December 2021. Intangible assets declined from Rs 0.70 crore to Rs 0.40 crore.

Cash flow from operating activities decreased to Rs 6.30 crore for YTD ended December 2021 from Rs 72.30 crore for YTD ended December 2020. Cash flow used in acquiring fixed assets during the YTD ended December 2021 stood at Rs 8.80 crore, compared to Rs 10.90 crore during the YTD ended December 2020.

Kennametal India : Consolidated Results
	2112 (3)	2012 (3)	Var. (%)	2112 (6)	2012 (6)	Var. (%)	2106 (12)	2006 (12)	Var. (%)
Sales	239.00	216.80	10	476.50	413.90	15	853.70	705.00	21
OPM (%)	19.2	14.4		19.1	14.2		15.3	10.1
OP	46.00	31.20	47	91.20	58.60	56	130.80	70.90	84
Other inc.	3.50	1.00	250	5.30	2.40	121	6.90	12.60	-45
PBIDT	49.50	32.20	54	96.50	61.00	58	137.70	83.50	65
Interest	0.00	0.10	-100	0.00	0.30	-100	0.30	1.90	-84
PBDT	49.50	32.10	54	96.50	60.70	59	137.40	81.60	68
Dep.	8.90	9.50	-6	18.10	19.10	-5	37.90	34.40	10
PBT	40.60	22.60	80	78.40	41.60	88	99.50	47.20	111
EO Exp	0.00	0.00	####	0.00	1.00	-100	1.00	5.10	-80
PBT after EO	40.60	22.60	80	78.40	40.60	93	98.50	42.10	134
Taxation	10.00	6.10	64	19.50	10.90	79	25.20	9.20	174
PAT	30.60	16.50	85	58.90	29.70	98	73.30	32.90	123
PPT	0.00	0.00		0.00	0.00	####	0.00	-1.00	-100
Net profit	30.60	16.50	85	58.90	29.70	98	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 : Consolidated Segment Results

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	Quarter ended				Year to Date				Year ended
	% of (Total)	202112	202012	Var.(%)	% of (Total)	202112	202012	Var.(%)	% of (Total)	202106	202006	Var.(%)
Sales
Maching Solutions	14.52	34.70	26.10	32.95	13.52	64.40	53.30	20.83	12.93	110.40	148.10	-25.46
Hard Metal and Hard Metal Products	85.48	204.30	190.70	7.13	86.48	412.10	360.60	14.28	87.07	743.30	556.90	33.47
Total Reported Sales	100.00	239.00	216.80	10.24	100.00	476.50	413.90	15.12	100.00	853.70	705.00	21.09
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00		0.00	0.00	-
Net Sales	100.00	239.00	216.80	10.24	100.00	476.50	413.90	15.12	100.00	853.70	705.00	21.09
PBIT
Maching Solutions	11.37	5.30	0.70	657.14	9.55	8.70	1.90	357.89	5.62	7.00	29.60	-76.35
Hard Metal and Hard Metal Products	88.63	41.30	28.30	45.94	90.45	82.40	53.10	55.18	94.38	117.50	43.80	168.26
Total PBIT	100.00	46.60	29.00	60.69	100.00	91.10	55.00	65.64	100.00	124.50	73.40	69.62
Less : Interest		0.00	0.00	-		0.00	0.00	-		0.00	0.00	-
Add: Other un-allcoable		-6.00	-6.40	6.25		-12.70	-14.40	11.81		-26.00	-31.20	16.67
PBIT Margin(%)
Maching Solutions		15.27	2.68	1,259.18		13.51	3.56	994.46		6.34	19.99	-1,364.59
Hard Metal and Hard Metal Products		20.22	14.84	537.53		20.00	14.73	526.97		15.81	7.86	794.29
PBT	100.00	40.60	22.60	79.65	100.00	78.40	40.60	93.10	100.00	98.50	42.20	133.41

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Kennametal India standalone net profit rises 145.51% in the March 2024 quarter
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