Kirloskar Pneumatic Company Ltd (KPCL), announced today its financial results for H1 of the financial year FY23, reporting sales up 43 per cent, profit before tax (PBT) up 126 per cent over the previous year.

The major player in air, refrigeration and gas compression business in India, also reported 8 per cent growth in Q-o-Q sales with over 65 per cent growth in PBT. 

The company stepped up execution of orders for both domestic and export customers based on improving supply chain situation. “All the product lines performed to the plan. There was a general easing in commodity prices and this ensured that margins were in line with the plan. However, deliveries from overseas–particularly from Europe–continue to be plagued by uncertainty and extended timelines,” the company added in a press statement.

Improved market position

It added, “While this impacted us marginally, as a whole it improved our competitive position in the market. Export of packages to the MENA region continues to do well, based on the already booked orders. This will continue into the next quarters as well.”

The Company added that the order bank of over ₹1,200 crores remains at more or less the same level as in the last quarter. While several orders are in the process of finalisation, the company expects order booking to improve in the next two quarters to propel growth in sales for FY24, keeping in line with our aspirational target.

The compression business continues to contribute around 95 per cent of the company’s revenue and remains the only reporting segment.

H1 FY23 fiinancial performance

Operating revenue for H1 is at ₹567 crore vs ₹395 crore in FY22, registering over 43 per cent growth y-o-y. The operating revenue of ₹295 crore for Q2 also showed a growth of 34 per cent, over Q2-FY22 and over 8 per cent of Q1 of the current year.

H1 EBITDA margin was at 12.9 per cent compared with 11.4 per cent of FY22.  EBIDTA q-o-q FY23 also showed improvement to 14.7 per cent in Q2, from 10.9 per cent in Q1.

With no interest cost in the current year, H1 PBT was at ₹57.6 crore ( 10.1%) compared with ₹25.4 crore (6.3%) of FY22, a growth of over 126 per cent. Profit after tax improved to 7.6 per cent of the total income and stood at ₹43.5 crore in H1 compared with ₹18.4 crore (4.6%) in FY22.