Capitaline

Sales of Machining solutions segment has gone down 5.87% to Rs 38.50 crore (accounting for 14.22% of total sales). Sales of Hard metal and hard metal products segment has gone down 0.68% to Rs 232.30 crore (accounting for 85.78% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has jumped 15.12% to Rs 43.40 crore. PBIT of Machining solutions segment rose 81.82% to Rs 4.00 crore (accounting for 9.22% of total PBIT). PBIT of Hard metal and hard metal products segment rose 10.99% to Rs 39.40 crore (accounting for 90.78% of total PBIT).
PBIT margin of Machining solutions segment rose from 5.38% to 10.39%. PBIT margin of Hard metal and hard metal products segment rose from 15.18% to 16.96%. Overall PBIT margin rose from 13.72% to 16.03%.

For year-to-date (YTD) results analysis

Standalone net sales (including other operating income) of Kennametal India for the half year ended Dec 2023 has declined 2.47% to Rs 528.70 crore. Operating profit margin has declined from 15.59% to 14.68%, leading to 8.17% decline in operating profit to Rs 77.60 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 29.50% to 27.55%. Purchase of finished goods cost rose from 25.60% to 27.22%. Employee cost increased from 13.10% to 13.94%. Other expenses rose from 16.68% to 16.82%. Other income up 62.50% to Rs 3.9 crore. PBIDT fell 6.21% to Rs 81.5 crore. Provision for interest remained nil. PBDT fell 6.79% to Rs 81 crore. Provision for depreciation rose 17.58% to Rs 21.4 crore. Profit before tax down 13.25% to Rs 59.60 crore. Provision for tax was expense of Rs 17.6 crore, compared to Rs 15.3 crore. Effective tax rate was 29.53% compared to 22.27%. Profit after tax fell 21.35% to Rs 42.00 crore.

Commenting on the results, Vijaykrishnan Venkatesan, Managing Director, KIL said, “Our focus on operational efficiency has helped improve our profitability both sequentially and on a year-over-year basis. As we leverage a profitable product mix, focus on share gain in high growth segments and new territories, and delivering value to customers through a ‘full solutions’ approach, we are well poised to drive sales and improve profitability.”

Others

Equity capital stood at Rs 22.00 crore as of 31 December 2023 to Rs 22.00 crore as of 31 December 2022. Per share face Value remained same at Rs 10.00.

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

Loan funds remained nil. Inventories declined from Rs 293.50 crore as of 31 December 2022 to Rs 250.40 crore as of 31 December 2023. Sundry debtors were lower at Rs 158.00 crore as of 31 December 2023 compared to Rs 158.20 crore as of 31 December 2022. Cash and bank balance rose to Rs 112.80 crore as of 31 December 2023 from Rs 48.90 crore as of 31 December 2022. Fixed assets declined from Rs 303.80 crore as of 31 December 2022 to Rs 299.90 crore as of 31 December 2023. Intangible assets declined from Rs 0.30 crore to Rs 0.20 crore.

Cash flow from operating activities increased to Rs 31.60 crore for YTD ended December 2023 from Rs 3.60 crore for YTD ended December 2022. Cash flow used in acquiring fixed assets during the YTD ended December 2023 stood at Rs 10.30 crore, compared to Rs 20.30 crore during the YTD ended December 2022.

Quarter ended

Year to Date

Year ended

Particulars

202312

202212

Var.(%)

202312

202212

Var.(%)

202306

202206

Var.(%)

Net Sales (including other operating income)

270.80

274.80

-1.46

528.70

542.10

-2.47

1,077.10

990.70

8.72

OPM (%)

15.77

13.72

205 bps

14.68

15.59

-91 bps

14.07

18.06

-399 bps

42.70

37.70

13.26

77.60

84.50

-8.17

151.50

178.90

-15.32

Other Inc.

2.20

1.20

83.33

3.90

2.40

62.50

5.20

9.40

-44.68

PBIDT

44.90

38.90

15.42

81.50

86.90

-6.21

156.70

188.30

-16.78

Interest

0.5

0.2

PBDT

44.40

38.90

14.14

81.00

86.90

-6.79

156.50

188.30

-16.89

Depreciation

9.3

18.28

21.4

18.2

17.58

38.9

35.7

8.96

PBT

33.40

29.60

12.84

59.6

68.7

-13.25

117.6

152.6

-22.94

PBT before EO

33.4

29.6

12.84

59.6

68.7

-13.25

117.6

152.6

-22.94

EO Income

PBT after EO

33.4

29.6

12.84

59.6

68.7

-13.25

117.6

152.6

-22.94

Taxation

8.5

7.7

10.39

17.6

15.3

15.03

29.9

38.5

-22.34

PAT

24.9

21.9

13.70

53.4

-21.35

87.7

114.1

-23.14

P/(L) from discontinued operations net of tax

Net profit after discontinued operations

24.9

21.9

13.70

53.4

-21.35

87.7

114.1

-23.14

EPS (Rs)*

11.33

9.96

13.70

19.11

24.30

-21.35

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

Quarter ended

Year to Date

Year ended

% of (Total)

202312

202212

Var.(%)

% of (Total)

202212

202112

Var.(%)

% of (Total)

202306

202206

Var.(%)

Sales

Machining solutions

14.22

38.50

40.90

-5.87

14.41

78.10

64.40

21.27

13.90

149.70

146.50

2.18

Hard metal and hard metal products

85.78

232.30

233.90

-0.68

85.59

464.00

412.10

12.59

86.10

927.40

844.20

9.86

Total Reported Sales

100.00

270.80

274.80

-1.46

100.00

542.10

476.50

13.77

100.00

1,077.10

990.70

8.72

Less: Inter segment revenues

0.00

Net Sales

100.00

270.80

274.80

-1.46

100.00

542.10

476.50

13.77

100.00

1,077.10

990.70

8.72

PBIT

Machining solutions

9.22

4.00

2.20

81.82

6.12

5.20

8.70

-40.23

7.24

10.80

20.60

-47.57

Hard metal and hard metal products

90.78

39.40

35.50

10.99

93.88

79.80

82.40

-3.16

92.76

138.40

157.80

-12.29

Total PBIT

100.00

43.40

37.70

15.12

100.00

85.00

91.10

-6.70

100.00

149.20

178.40

-16.37

Less : Interest

0.50

0.00

0.20

0.00

Add: Other un-allcoable

-9.50

-8.10

-17.28

-16.30

-12.70

-28.35

-31.40

-25.80

-21.71

PBIT Margin(%)

Machining solutions

10.39

5.38

501.06

6.66

13.51

-685.12

7.21

14.06

-684.70

Hard metal and hard metal products

16.96

15.18

178.34

17.20

20.00

-279.69

14.92

18.69

-376.88

PBT

100.00

33.40

29.60

12.84

100.00

68.70

78.40

-12.37

100.00

117.60

152.60

-22.94