Kirloskar Pneumatic Company shares rally 13% over 88% jump in Q4 PAT

Shares of Kirloskar Pneumatic Company rose over 13% on Thursday after the firm reported an 88% year-on-year (YoY) growth in its fourth quarter net profit at ₹60 crore.

Revenue from operations rose 36% YoY to ₹490 crore during the quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 74.50% YoY to ₹89 crore while the EBITDA margin improved to 18% from 14% in the same period a year ago.

For the fiscal year 2024, the company reported a 7% YoY growth in operating revenue at ₹1,323 crore. Net profit rose 23% to ₹133 crore in FY24. EBITDA rose 20.33% YoY to ₹213 crore while the EBITDA margin improved to 16% from 14%. The board of directors has recommended a final dividend of ₹4 per share.

Kirloskar Pneumatic said that as of March 31, 2024, the order book stood at ₹1,475 crore, reflecting an increase of ₹325 crore compared to the same period last year. This represents a 28% growth in orders at the start of the year compared to the previous year, indicating a strong market demand, it said.

The company also pointed out that Tezcatlipoca, a centrifugal compressor introduced during the year, was well received and that it has strong orders in the pipeline for scale-up. The other new products like the Khione refrigeration compressor, Aria-Atmos, and Calana booster compressor are all in the ramp-up phase, it said.

The firm also stated that in order to address the emerging opportunities in Hydrogen compression, it has entered into an agreement with PDC Machines, USA to offer diaphragm compressor packages for various industries and applications. Compression business continues to be around 93% of the company’s revenue and remains the only reporting segment, it added.

Shares of the company have risen over 53% since the beginning of the year. The stock has gained over 52% in the last one year.