Kirloskar Industries Ltd. (KIL) announced its financial results for the third quarter (Q3) of the fiscal year on February 10, revealing a sharp 46.3% decline in net profit. The company’s net profit fell to ₹79.5 crore, down from ₹148 crore in the same quarter last year. However, revenue showed a modest increase of 4%, rising to ₹1,613.5 crore from ₹1,553.5 crore in Q3 of the previous fiscal year.
The company’s operational performance also weakened, with earnings before interest, tax, depreciation, and amortization (EBITDA) dropping by 24.6% to ₹172 crore, compared to ₹228.3 crore a year earlier. This resulted in a contraction of the EBITDA margin to 10.7%, down from 14.7% in the December quarter of the previous fiscal year.
Quarterly Performance Trends
In the previous quarter (Q2), Kirloskar Industries had reported a 9.2% rise in net profit, reaching ₹49.7 crore, up from ₹45.5 crore in the same period last year. Revenue in Q2 had also increased by 7% to ₹1,687.7 crore, compared to ₹1,578 crore in the corresponding quarter of the previous fiscal year. Despite this, EBITDA in Q2 had declined by 19.6% to ₹211.7 crore, down from ₹263.2 crore in Q2 of the previous year, leading to a drop in EBITDA margin to 12.5% from 16.7%.
Management Commentary
Aditi Chirmule, Executive Director of Kirloskar Industries Limited (KIL), commented on the Q3 and nine-month results, stating, “KIL has maintained a stable performance this quarter, with significant progress across its subsidiaries.” She highlighted key developments, including the commissioning of a 69 MW DC solar plant by Kirloskar Ferrous Industries Limited (KFIL) in Jalna, Maharashtra, and the initiation of coal mining operations with an annual permitted extraction of 1.24 lakh metric tons.
In the real estate sector, KIL’s wholly owned subsidiary, Avante Spaces Limited (Avante), is making steady progress on its 1.6 million square foot commercial project in Pune. Additionally, the company appointed Deepak Porayath as CEO of Avante in February to drive strategic leadership and advance its real estate vision.
About Kirloskar Industries Ltd.
Kirloskar Industries Ltd., incorporated in 1978, is a publicly listed company on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company is actively involved in wind power generation and has diversified into real estate development through its subsidiary, Avante Spaces Limited. KIL also invests in securities of group companies and manages commercial rental properties as part of its portfolio.
The latest financial results reflect the challenges faced by the company in maintaining profitability, even as it continues to expand its operations across various sectors.
