Operating profit margin has declined from 17.60% to 16.79%, leading to 20.91% rise in operating profit to Rs 45.10 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 23.47% to 29.87%.   Purchase of finished goods cost fell from 29.78% to 24.15%.   Employee cost decreased from 13.94% to 13.36%.   Other expenses rose from 15.97% to 16.51%.   

Other income rose 46.15% to Rs 1.9 crore.  PBIDT rose 21.76% to Rs 47 crore.  Provision for interest remained nil.  Loan funds remained nil.  Inventories rose to Rs 266.60 crore as of 30 June 2022 from Rs 205.10 crore as of 30 June 2021.  Sundry debtors were higher at Rs 136.80 crore as of 30 June 2022 compared to Rs 113.10 crore as of 30 June 2021.  Cash and bank balance declined from Rs 129.20 crore as of 30 June 2021 to Rs 64.40 crore as of 30 June 2022.  

PBDT rose 21.76% to Rs 47 crore.  Provision for depreciation fell 6.38% to Rs 8.8 crore.  Fixed assets increased to Rs 291.40 crore as of 30 June 2022 from Rs 276.30 crore as of 30 June 2021.  Intangible assets declined from Rs 0.50 crore to Rs 0.40 crore.  

Profit before tax grew 30.82% to Rs 38.20 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 10.1 crore, compared to Rs 7.6 crore.  Effective tax rate was 26.44% compared to 26.03%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 30.09% to Rs 28.10 crore.  

• Sales of Maching Solutions segment has gone up 80.88% to Rs 45.40 crore (accounting for 16.90% of total sales).  Sales of Hard Metal and Hard Metal Products segment has gone up 19.49% to Rs 223.20 crore (accounting for 83.10% of total sales).  
• Profit before interest, tax and other unallocable items (PBIT) has jumped 28.77% to Rs 45.20 crore.  PBIT of Maching Solutions segment rose 182.14% to Rs 7.90 crore (accounting for 17.48% of total PBIT).  PBIT of Hard Metal and Hard Metal Products segment rose 15.48% to Rs 37.30 crore (accounting for 82.52% of total PBIT).  
• PBIT margin of Maching Solutions segment rose from 11.16% to 17.40%.  PBIT margin of Hard Metal and Hard Metal Products segment fell from 17.29% to 16.71%.  Overall PBIT margin rose from 16.56% to 16.83%.  

Full year results analysis.

Net sales (including other operating income) of Kennametal India has increased 16.05% to Rs 990.7 crore.  Sales of Machining solutions segment has gone up 32.70% to Rs 146.50 crore (accounting for 14.79% of total sales).  Sales of Hard metal and hard metal products segment has gone up 13.57% to Rs 844.20 crore (accounting for 85.21% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 43.29% to Rs 178.40 crore.  PBIT of Machining solutions segment rose 194.29% to Rs 20.60 crore (accounting for 11.55% of total PBIT).  PBIT of Hard metal and hard metal products segment rose 34.30% to Rs 157.80 crore (accounting for 88.45% of total PBIT).  

PBIT margin of Machining solutions segment rose from 6.34% to 14.06%.  PBIT margin of Hard metal and hard metal products segment rose from 15.81% to 18.69%.  Overall PBIT margin rose from 14.58% to 18.01%.  

Operating profit margin has jumped from 15.32% to 18.06%, leading to 36.77% rise in operating profit to Rs 178.90 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 25.84% to 28.36%.   Purchase of finished goods cost fell from 27.38% to 24.30%.   Employee cost decreased from 14.91% to 14.01%.   Other expenses fell from 16.49% to 16.07%.   

Other income rose 36.23% to Rs 9.4 crore.  PBIDT rose 36.75% to Rs 188.3 crore.  Provision for interest remained nil.  Loan funds remained nil.  Inventories rose to Rs 266.60 crore as of 30 June 2022 from Rs 205.10 crore as of 30 June 2021.  Sundry debtors were higher at Rs 136.80 crore as of 30 June 2022 compared to Rs 113.10 crore as of 30 June 2021.  Cash and bank balance declined from Rs 129.20 crore as of 30 June 2021 to Rs 64.40 crore as of 30 June 2022.  

PBDT rose 37.05% to Rs 188.3 crore.  Provision for depreciation fell 5.80% to Rs 35.7 crore.  Fixed assets increased to Rs 291.40 crore as of 30 June 2022 from Rs 276.30 crore as of 30 June 2021.  Intangible assets declined from Rs 0.50 crore to Rs 0.40 crore.  

Profit before tax grew 53.37% to Rs 152.60 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 38.5 crore, compared to Rs 25.2 crore.  Effective tax rate was 25.23% compared to 25.58%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 55.66% to Rs 114.10 crore.  

Management Comment

Commenting on the results, Mr. Vijaykrishnan Venkatesan, Managing Director, Kennametal India said, “Our sound financial performance reflects the resilience and commitment demonstrated by the team in delivering on strategic initiatives despite challenges in the macroeconomic environment, including inflation. During the year, we continued to expand and diversify our customer base across segments. Our steadfast focus on innovation - balancing horizontal deployment of proven solutions with new launches, enabled customers to achieve productivity and performance. Our growth initiatives, combined with commercial and operational efficiencies helped us achieve profitable growth in FY22, and we will endeavor to progress in FY23.”

Equity capital stood at Rs 22.00 crore as of 30 June 2022 to Rs 22.00 crore as of 30 June 2021.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 75.00% as of 30 June 2022 ,compared to 75.00% as of 30 June 2021 .