Standalone net sales (including other operating income) of Kennametal India for the quarter ended Sep 2023 has declined 3.52% to Rs 257.90 crore. Fall in sales is due to slower than expected recovery in China, mainly impacting the Machine Tools business. Operating profit margin has declined from 17.51% to 13.53%, leading to 25.43% decline in operating profit to Rs 34.90 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 30.58% to 26.86%. Purchase of finished goods cost rose from 25.04% to 27.96%. Employee cost increased from 12.07% to 14.15%. Other expenses rose from 16.12% to 17.67%. Other income up 54.55% to Rs 1.7 crore. PBIDT fell 23.59% to Rs 36.6 crore. Provision for interest remained nil. PBDT fell 23.59% to Rs 36.6 crore. Provision for depreciation rose 16.85% to Rs 10.4 crore. Profit before tax down 32.82% to Rs 26.20 crore. Provision for tax was expense of Rs 9.1 crore, compared to Rs 7.6 crore. Effective tax rate was 34.73% compared to 19.49%. Profit after tax fell 45.54% to Rs 17.10 crore. Full year results analysis
Net sales (including other operating income) of Kennametal India has increased 8.72% to Rs 1,077.10 crore. Operating profit margin has declined from 18.06% to 14.07%, leading to 15.32% decline in operating profit to Rs 151.50 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 28.36% to 27.58%. Purchase of finished goods cost rose from 24.30% to 27.30%. Employee cost increased from 14.02% to 14.05%. Other expenses rose from 16.06% to 16.74%. Other income fell 44.68% to Rs 5.2 crore. PBIDT fell 16.78% to Rs 156.7 crore. Provision for interest remained nil. Loan funds remained nil. Inventories declined from Rs 266.60 crore as of 30 June 2022 to Rs 244.40 crore as of 30 June 2023. Sundry debtors were higher at Rs 142.00 crore as of 30 June 2023 compared to Rs 136.80 crore as of 30 June 2022. Cash and bank balance rose to Rs 89.50 crore as of 30 June 2023 from Rs 64.40 crore as of 30 June 2022. PBDT fell 16.89% to Rs 156.5 crore. Provision for depreciation rose 8.96% to Rs 38.9 crore. Fixed assets increased to Rs 308.40 crore as of 30 June 2023 from Rs 291.40 crore as of 30 June 2022. Intangible assets declined from Rs 0.40 crore to Rs 0.30 crore. Profit before tax down 22.94% to Rs 117.60 crore. Provision for tax was expense of Rs 29.9 crore, compared to Rs 38.5 crore. Effective tax rate was 25.43% compared to 25.23%. Profit after tax fell 23.14% to Rs 87.70 crore. Management Comments :
Commenting on the results, Vijaykrishnan Venkatesan, Managing Director, KIL said, “During the quarter, we continued to face challenges from weaker market conditions, partially offset by domestic demand in the end-use segments that we serve. Our short-term strategy involves continuing to grow share with domestic customers through innovation, new applications and targeted outreach in key growth segments and geographies. In parallel, we are rigorously driving operational efficiency to improve our profitability.” Promoters’ stake was 75.00% as of 30 June 2023 ,compared to 75.00% as of 30 June 2022 . | Kennametal India : Standalone Results | | Quarter ended | Year ended |
|---|
| Particulars | 202309 | 202209 | Var.(%) | 202306 | 202206 | Var.(%) |
|---|
| Net Sales (including other operating income) | 257.90 | 267.30 | -3.52 | 1,077.10 | 990.70 | 8.72 | | OPM (%) | 13.53 | 17.51 | -398 bps | 14.07 | 18.06 | -399 bps | | OP | 34.90 | 46.80 | -25.43 | 151.50 | 178.90 | -15.32 | | Other Inc. | 1.70 | 1.10 | 54.55 | 5.20 | 9.40 | -44.68 | | PBIDT | 36.60 | 47.90 | -23.59 | 156.70 | 188.30 | -16.78 | | Interest | 0 | 0 | - | 0.2 | 0 | - | | PBDT | 36.60 | 47.90 | -23.59 | 156.50 | 188.30 | -16.89 | | Depreciation | 10.4 | 8.9 | 16.85 | 38.9 | 35.7 | 8.96 | | PBT | 26.20 | 39.00 | -32.82 | 117.6 | 152.6 | -22.94 | | PBT before EO | 26.2 | 39 | -32.82 | 117.6 | 152.6 | -22.94 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 26.2 | 39 | -32.82 | 117.6 | 152.6 | -22.94 | | Taxation | 9.1 | 7.6 | 19.74 | 29.9 | 38.5 | -22.34 | | PAT | 17.1 | 31.4 | -45.54 | 87.7 | 114.1 | -23.14 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 17.1 | 31.4 | -45.54 | 87.7 | 114.1 | -23.14 | | EPS (Rs)* | 7.78 | 14.29 | -45.54 | 39.90 | 51.92 | -23.14 | | | * 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 |
|
|