KIRLOSENG · Capital Goods
Kirloskar Oil Eng Ltd. reported revenue of ₹1,505 cr for July to September 2024, +15.3% on the year and −7.8% on the quarter.
Operating profit (EBITDA) was ₹298 cr, a margin of 19.8%, +440 bps on the year and −11 bps on the quarter. Over the last 6 quarters the margin has ranged from 15.4% to 19.9%, averaging 18.2%. Operating costs grew +9.3% against revenue growth of +15.3%, so more of each rupee of sales reached operating profit.
Net profit was ₹125 cr, +60.3% on the year and −19.9% on the quarter, with earnings per share of ₹8.79. Profit before other income, one-offs and tax grew 51.5%, so 9 points of the headline growth came from outside the core business. The tax rate of 25% is in line with its recent average.
Capital goods and EPC revenue follows project execution, which makes quarters uneven; the order book and new orders tell more about the year than one quarter does. The quarterly statements do not carry the order book, new orders and working capital; those come with the filing read.
On earnings per share of ₹36.22 over the last four quarters, the stock at ₹2,025.60 trades at 55.9 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow filed with this quarter, the auditor's review, segment results, one-off items line by line and what management said on the call.
Finance cost rose fast and now takes a large bite of operating profit. New borrowing, or a higher rate?
Finance cost ₹118 cr, +59.5% on the year; 40% of EBITDA.
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
This quarter's filing carries a balance sheet and a cash flow statement. The cash, receivables and borrowing checks run once the filing read is in.
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹1,391 cr | ₹1,660 cr | ₹1,632 cr | ₹1,505 cr | ₹1,454 cr | ₹1,749 cr | ₹1,762 cr | ₹1,951 cr | ₹1,873 cr | ₹2,116 cr | ₹2,000 cr | ₹2,284 cr |
| YoY | — | — | +6% | +15% | +5% | +5% | +8% | +30% | +29% | +21% | +13% | +17% |
| EBITDA margin | 18.5% | 18.3% | 19.9% | 19.8% | 17.5% | 17.8% | 18.6% | 19.6% | 17.7% | 17.8% | 15.0% | 14.8% |
| Other income, % of PBT | −20% | 12% | 9% | 11% | 12% | 20% | 21% | 6% | −9% | 1% | 10% | 6% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 26% | 26% | 26% | 25% | 28% | 29% | 26% | 26% | 26% | 26% | 26% | 26% |
| Net profit | ₹89.0 cr | ₹147 cr | ₹156 cr | ₹125 cr | ₹68.0 cr | ₹127 cr | ₹139 cr | ₹159 cr | ₹109 cr | ₹155 cr | ₹111 cr | ₹130 cr |
| YoY | — | — | +24% | +60% | −24% | −14% | −11% | +27% | +60% | +22% | −20% | −18% |
| Core profit YoY | — | — | +18% | +52% | −42% | −18% | −23% | +39% | +92% | +45% | −8% | −19% |
| EPS | ₹6.20 | ₹10.25 | ₹10.98 | ₹8.79 | ₹4.91 | ₹9.03 | ₹9.77 | ₹11.18 | ₹7.66 | ₹10.91 | ₹7.82 | ₹9.04 |
| Flags | · | · | ✓ | 1 | 1 | ✓ | ✓ | ✓ | ✓ | ✓ | 1 | 2 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Kirloskar Oil Eng Ltd. reported revenue of ₹1,505 cr (+15.3% on the year) and net profit of ₹125 cr (+60.3% on the year) for July to September 2024.
Profit before other income, exceptional items and tax moved +51.5% on the year, against +60.3% for reported profit.
1 check raised a question: Finance cost rose fast and now takes a large bite of operating profit. New borrowing, or a higher rate?
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