Capitaline

Sales of Machine Tools(SPM) segment has gone up 17.87% to Rs 40.90 crore (accounting for 14.88% of total sales). But for fall in exports the growth in machine tools would have been better. Sales of Hard Metal & Hard Metal Products segment has gone up 14.49% to Rs 233.90 crore (accounting for 85.12% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has slumped 19.10% to Rs 37.70 crore. PBIT of Machine Tools(SPM) segment fell 58.49% to Rs 2.20 crore (accounting for 5.84% of total PBIT). PBIT of Hard Metal & Hard Metal Products segment fell 14.04% to Rs 35.50 crore (accounting for 94.16% of total PBIT).
PBIT margin of Machine Tools(SPM) segment fell from 15.27% to 5.38%. PBIT margin of Hard Metal & Hard Metal Products segment fell from 20.22% to 15.18%. Overall PBIT margin fell from 19.50% to 13.72%.

Half yearly performance

Net sales (including other operating income) of Kennametal India has increased 13.77% to Rs 542.10 crore. Operating profit margin has declined from 19.14% to 15.59%, leading to 7.35% decline in operating profit to Rs 84.50 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 27.54% to 29.50%. Purchase of finished goods cost rose from 24.47% to 25.60%. Employee cost decreased from 13.80% to 13.10%. Other expenses rose from 15.90% to 16.68%. Jump in other expenses for the quarter is largely as the company incurred Rs 4.1 crore for the half year ended Dec 2022 towards movement of machineries within factory premises. Other income fell 52.94% to Rs 2.4 crore. PBIDT fell 9.76% to Rs 86.9 crore. Provision for interest remained nil. PBDT fell 9.76% to Rs 86.9 crore. Provision for depreciation rose 0.55% to Rs 18.2 crore. Profit before tax down 12.15% to Rs 68.70 crore. Provision for tax was expense of Rs 15.3 crore, compared to Rs 19.5 crore. Effective tax rate was 22.27% compared to 24.94%. Profit after tax fell 9.03% to Rs 53.40 crore.

Sales of Machine Tools(SPM) segment has gone up 21.27% to Rs 78.10 crore (accounting for 14.41% of total sales). Sales of Hard Metal & Hard Metal Products segment has gone up 12.59% to Rs 464.00 crore (accounting for 85.59% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has slumped 6.70% to Rs 85.00 crore. PBIT of Machine Tools(SPM) segment fell 40.23% to Rs 5.20 crore (accounting for 6.12% of total PBIT). PBIT of Hard Metal & Hard Metal Products segment fell 3.16% to Rs 79.80 crore (accounting for 93.88% of total PBIT).
PBIT margin of Machine Tools(SPM) segment fell from 13.51% to 6.66%. PBIT margin of Hard Metal & Hard Metal Products segment fell from 20.00% to 17.20%. Overall PBIT margin fell from 19.12% to 15.68%.

Management Comments :

Commenting on the results, Vijaykrishnan Venkatesan, Managing Director, KIL said, “During the quarter, our sales continued to grow through focus on innovation and delivering customer centric solutions. This quarter we also celebrated Kennametal’s new Metal Cutting inserts manufacturing facility on its Bengaluru, India campus. This facility will further augment our capabilities in meeting the needs of diverse and high growth market segments in India, including transportation, aerospace, general engineering and energy. Alongside, we continue to drive our strategic priorities and operational efficiencies to deliver on our financial performance.”

Others

Equity capital stood at Rs 22.00 crore as of 31 December 2022 to Rs 22.00 crore as of 31 December 2021. Per share face Value remained same at Rs 10.00.

Loan funds remained nil. Inventories rose to Rs 293.50 crore as of 31 December 2022 from Rs 242.60 crore as of 31 December 2021. Sundry debtors were higher at Rs 158.20 crore as of 31 December 2022 compared to Rs 130.30 crore as of 31 December 2021. Cash and bank balance declined from Rs 113.40 crore as of 31 December 2021 to Rs 48.90 crore as of 31 December 2022. Fixed assets increased to Rs 303.80 crore as of 31 December 2022 from Rs 265.20 crore as of 31 December 2021. Intangible assets declined from Rs 0.40 crore to Rs 0.30 crore.

Promoters’ stake was 75.00% as of 31 December 2022 ,compared to 75.00% as of 31 December 2021 .

Quarter ended

Year to Date

Year ended

Particulars

202212

202112

Var.(%)

202212

202112

Var.(%)

202206

202106

Var.(%)

Net Sales (including other operating income)

274.80

239.00

14.98

542.10

476.50

13.77

990.70

811.40

22.10

OPM (%)

13.72

19.21

-549 bps

15.59

19.14

-355 bps

18.14

14.79

335 bps

37.70

45.90

-17.86

84.50

91.20

-7.35

179.70

120.00

49.75

Other Inc.

1.20

3.40

-64.71

2.40

5.10

-52.94

9.00

8.50

5.88

PBIDT

38.90

49.30

-21.10

86.90

96.30

-9.76

188.70

128.50

46.85

Interest

0.3

PBDT

38.90

49.30

-21.10

86.90

96.30

-9.76

188.70

128.20

47.19

Depreciation

9.3

8.9

4.49

18.2

18.1

0.55

35.7

37.8

-5.56

PBT

29.60

40.40

-26.73

68.7

78.2

-12.15

153

90.4

69.25

PBT before EO

29.6

40.4

-26.73

68.7

78.2

-12.15

153

90.4

69.25

EO Income

-1

PBT after EO

29.6

40.4

-26.73

68.7

78.2

-12.15

153

89.4

71.14

Taxation

7.7

-23.00

15.3

19.5

-21.54

38.5

22.8

68.86

PAT

21.9

30.4

-27.96

53.4

58.7

-9.03

114.5

66.6

71.92

P/(L) from discontinued operations net of tax

Net profit after discontinued operations

21.9

30.4

-27.96

53.4

58.7

-9.03

114.5

66.6

71.92

EPS (Rs)*

9.96

13.83

-27.96

24.30

26.71

-9.03

52.10

30.64

70.03

* EPS is on current equity of Rs 21.98 crore, Face value of Rs 10, Excluding extraordinary items.

# EPS is not annualised

bps : Basis points

EO : Extraordinary items

Figures in Rs crore

Source: Capitaline Corporate Database

Quarter ended

Year to Date

Year ended

% of (Total)

202212

202112

Var.(%)

% of (Total)

202212

202112

Var.(%)

% of (Total)

202206

202106

Var.(%)

Sales

Machine Tools(SPM)

14.88

40.90

34.70

17.87

14.41

78.10

64.40

21.27

14.79

146.50

110.40

32.70

Hard Metal & Hard Metal Products

85.12

233.90

204.30

14.49

85.59

464.00

412.10

12.59

85.21

844.20

701.00

20.43

Total Reported Sales

100.00

274.80

239.00

14.98

100.00

542.10

476.50

13.77

100.00

990.70

811.40

22.10

Less: Inter segment revenues

0.00

Net Sales

100.00

274.80

239.00

14.98

100.00

542.10

476.50

13.77

100.00

990.70

811.40

22.10

PBIT

Machine Tools(SPM)

5.84

2.20

5.30

-58.49

6.12

5.20

8.70

-40.23

11.55

20.60

7.00

194.29

Hard Metal & Hard Metal Products

94.16

35.50

41.30

-14.04

93.88

79.80

82.40

-3.16

88.45

157.80

107.30

47.06

Total PBIT

100.00

37.70

46.60

-19.10

100.00

85.00

91.10

-6.70

100.00

178.40

114.30

56.08

Less : Interest

0.00

Add: Other un-allcoable

-8.10

-6.00

-35.00

-16.30

-12.70

-28.35

-25.80

-24.90

-3.61

PBIT Margin(%)

Machine Tools(SPM)

5.38

15.27

-989.48

6.66

13.51

-685.12

14.06

6.34

772.09

Hard Metal & Hard Metal Products

15.18

20.22

-503.79

17.20

20.00

-279.69

18.69

15.31

338.55

PBT

100.00

29.60

40.60

-27.09

100.00

68.70

78.40

-12.37

100.00

152.60

89.40

70.69