Kirloskar Pneumatic Company Ltd (KPCL), a leading player in India’s air, refrigeration, and gas compression industry, has reported impressive financial results for the first quarter of the fiscal year 2025 (Q1 FY25). The company’s revenue from operations grew by 13.6 per cent, while profit before tax (PBT) surged by 53 per cent compared to the same quarter in the previous fiscal year (Q1 FY24).
For Q1 FY25, KPCL reported a total income of ₹280 crore, up from ₹248 crore in Q1 FY24. PBT increased to ₹35.9 crore, which significantly rose from the ₹23.5 crore recorded in Q1 FY24. The company’s net profit after tax also grew substantially, increasing by over 50 per cent.
The order booking for Q1 FY25 was robust at ₹421 crore, and as of 1st July 2024, the orders on hand stood at ₹1,618 crore, reflecting a 20 per cent increase compared to 1st July 2023.
Despite challenges such as an unusually hot summer and the extended election process, which impacted project execution across India, the company witnessed a turnaround in June 2024, as indicated by the increased order inflow.
During the quarter, KPCL entered into a memorandum of understanding (MoU) to acquire a controlling interest in M/S Systems and Components, a significant player in refrigeration packages for the pharmaceutical, chemical, and dairy industries. The transaction is expected to be completed in Q2 FY25, subject to due diligence and closing adjustments. This acquisition is anticipated to expand KPCL’s addressable market.
The company achieved a record filing of 15 intellectual properties (IPs) in Q1 FY25, highlighting the progress of its R&D initiatives. The compression business remains a core segment, contributing approximately 92 per cent of KPCL’s revenue.
Financial Performance
In terms of financial performance for Q1 FY25, revenue from operations stood at ₹275 crore, up from ₹242 crore in Q1 FY24, marking a growth of about 13.6 per cent. Consequently, total income was ₹280 crore, compared to ₹248 crore in Q1 FY24. The EBITDA margin improved to 15.6 per cent of total income compared to 13 per cent in Q1 FY24. PBT was ₹35.9 crore (12.8 per cent of total income), up from ₹23.5 crore (9.5 per cent) in Q1 FY24, registering a growth of over 53 per cent. Profit after tax improved to ₹26.9 crore (9.6 per cent of total income), representing a 50 per cent growth over the net profit of ₹17.9 crore (7.2 per cent) in Q1 FY24. The order book stood at ₹1,618 crore as of 1st July 2024, a 20 per cent increase from ₹1,347 crore as of 1st July 2023. Basic EPS improved to ₹4.15 per share, compared to ₹2.77 per share in the previous year.