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Kirloskar Pneumatic reported a 65% fall in net sales and lower utilization of resources resulted in under utilization of fixed costs and thus loss at OP level of Rs 6.41 crore. Both the segments compression systems and transmission products business reported fall in turnover and loses at segmental PBIT level. Higher other income, up by 80% YoY and tax credit of Rs 3.54 crore, thus restricted the loss at PAT level to Rs 0.25 crore.
Performance for the quarter ended June'14
The company reported 65% fall in net sales to Rs 73.31 crore on YoY basis for June'14 quarter. Raw material costs, staff costs and other expenditure as a % to net sales, net of stock adjustments, were up by 2240 bps, 1890 bps and 1860 bps respectively and thus reflects that the fixed costs have not been fully utilized resulting in losses at OP level. Operating loss stood at Rs 6.41 crore as compared to operating profit of Rs 16.63 crore. Other income was up by 80% to Rs 7.15 crore. This includes interest income and sale of scarp. There was no interest costs as compared to interest expense of Rs 13 lakh for June'13 quarter. Deprecation was up by 47% to Rs 4.53 crore. There was a tax credit of Rs 3.54 crore as compared to tax expense of Rs 5.60 crore for June'13 quarter. Thus overall loss for June'14 quarter got restricted to Rs 0.25 crore as compared to profit of Rs 11.79 crore for June'13 quarter.
Segmental Performance for the quarter ended June'14
For quarter ended Q1 FY'15, Compression systems segment, which contributed about 82% of total revenue, reported a 39% fall in sales to Rs 58.49 crore. Loss at PBIT level stood at Rs 0.11 crore as compared to profit at PBIT level of Rs 18.28 crore.
For quarter ended Q1 FY'15, Transmission segment, which contributed about 18% of total revenue, reported a 44% fall in sales to Rs 13.23 crore. Loss at PBIT level stood at Rs 2.04 crore as compared to profit at PBIT level of Rs 3.79 crore.
Performance for the year ended March'14
Standalone sales for the period was down by 7% to Rs 515.43 crore and with 110 bps contraction in OPM the operating profit was lower by 15% to Rs 64.48 crore. The other income was higher by 30% to Rs 10.55 crore. The interest was lower by 73% (to Rs 0.35 lakh) and the depreciation was higher by 15% to Rs 13.21 crore. Thus the PBT was lower by 13% to Rs 61.47 crore. Hurt further by higher tax incidence the net profit was lower by 18% to Rs 38.83 crore.
Promoter's shareholding stood at 67.89% and none of them are pledged as on June'14
The scrip is trading at around Rs 580.
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