• Sales of Machine Tools(SPM) segment has gone down 25.41% to Rs 27.30 crore (accounting for 10.68% of total sales).  Sales of Hard Metal & Hard Metal Products segment has gone up 9.28% to Rs 228.40 crore (accounting for 89.32% of total sales).  While the Hard Metals segment witnessed growth, there was an impact due to manufacturing under absorption. The Machine Tools segment sales saw a decline in its export revenue due to a slower reopening in China. 
• Profit before interest, tax and other unallocable items (PBIT) has slumped 28.44% to Rs 30.70 crore.  PBIT of Machine Tools(SPM) segment fell 82.50% to Rs 0.70 crore (accounting for 2.28% of total PBIT).  PBIT of Hard Metal & Hard Metal Products segment fell 22.88% to Rs 30.00 crore (accounting for 97.72% of total PBIT).  
• PBIT margin of Machine Tools(SPM) segment fell from 10.93% to 2.56%.  PBIT margin of Hard Metal & Hard Metal Products segment fell from 18.61% to 13.13%.  Overall PBIT margin fell from 17.47% to 12.01%.  

 
 For year-to-date (YTD) results analysis

Net sales (including other operating income) of Kennametal India has increased 10.48% to Rs 797.80 crore.  Sales of Machining solutions segment has gone up 4.36% to Rs 105.40 crore (accounting for 13.21% of total sales).  Sales of Hard metal and hard metal products segment has gone up 11.48% to Rs 692.40 crore (accounting for 86.79% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has slumped 13.53% to Rs 115.70 crore.  PBIT of Machining solutions segment fell 53.17% to Rs 5.90 crore (accounting for 5.10% of total PBIT).  PBIT of Hard metal and hard metal products segment fell 9.41% to Rs 109.80 crore (accounting for 94.90% of total PBIT).  

PBIT margin of Machining solutions segment fell from 12.48% to 5.60%.  PBIT margin of Hard metal and hard metal products segment fell from 19.51% to 15.86%.  Overall PBIT margin fell from 18.53% to 14.50%.  

Operating profit margin has declined from 18.50% to 14.41%, leading to 13.92% decline in operating profit to Rs 115.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 27.81% to 28.60%.   Purchase of finished goods cost rose from 24.37% to 27.23%.   Employee cost decreased from 14.25% to 13.49%.   Other expenses rose from 15.91% to 16.60%.   

Other income fell 49.33% to Rs 3.8 crore.  PBIDT fell 15.80% to Rs 118.8 crore.  Provision for interest remained nil.  

PBDT fell 15.80% to Rs 118.8 crore.  Provision for depreciation rose 4.46% to Rs 28.1 crore.  Profit before tax down 20.58% to Rs 90.70 crore.  Provision for tax was expense of Rs 21.7 crore, compared to Rs 28.4 crore.  Effective tax rate was 23.93% compared to 24.87%.Profit after tax fell 19.58% to Rs 69.00 crore.  

Commenting on the results, Vijaykrishnan Venkatesan, Managing Director, KIL said, “During the quarter, we benefitted from price realization, volume growth, easing of supply chain constraints and resilience in our end markets of transportation, aerospace, energy, construction, mining and general engineering. We successfully partnered with several of our customers in catering to domestic market demand through innovative solutions, new product introductions, as well as robust application and technical service support.”  

Others

KIL announced an Interim dividend of ? 20/- per share for FY23 as against ? 24/- per share for FY22.  

Promoters’ stake was 75.00% as of 31 March 2023 ,compared to 75.00% as of 31 March 2022 .