Kirloskar Pneumatic shares soar 18% as post-earnings rally extends to 2nd day

During the previous trading session, the company soared by 15% after it released its results during market hours, surpassing analysts’ expectations. This two-day rally has pushed the stock’s one-year gain to 74% and its five-year gain to an impressive 472%.

In the March quarter, the company reported a revenue of ₹490 crore, marking 36% YoY growth. Its EBIDTA during the quarter jumped to ₹89 crore, a 74.50% improvement compared to ₹51 crore in Q4FY23.

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On the bottom line, the company recorded a PAT of ₹60 crore, up from ₹32 crore in Q4FY23, representing an 88% year-on-year increase. 

For the full FY24, the company reported revenue from operations of ₹1,323 crore, a 7% growth from ₹1,239 crore in FY23. The PAT for FY24 stood at ₹133 crore, up from ₹108 crore in FY23, indicating a 23% year-on-year increase. EPS for FY24 was reported at ₹20.60 per share, compared to ₹16.82 per share in FY23.

Additionally, the company announced a final dividend of 200% at ₹4 per share, addition to the interim dividend of 125%, resulting in an overall dividend of ₹6.50 per share (325%).

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Strong start to FY25

Kirloskar Pneumatic Company is a core entity within the Kirloskar Group. It is a diversified organisation offering a wide array of products, including air, refrigeration, and gas compressors and systems, vapor absorption chillers, and industrial gearboxes. 

Serving various industries such as steel, cement, cold chains, food and beverages, pharmaceuticals, railways, defence, and marine, KPCL holds a significant presence in the oil & gas sector, particularly in the CNG business in India.

As of March 31, 2024, the company’s order book stood at ₹1,475 crore, marking a notable increase of ₹325 crore compared to the same period last year. 

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This 28% surge in orders at the beginning of the fiscal year highlights robust market demand and reaffirms the company’s strong positioning at the onset of FY25, the company said in its earnings report. 

The compression business remains the primary revenue driver for the company, constituting approximately 93% of the company’s total revenue and serving as the sole reporting segment.

Strong positioning 

Analysts highlight the company’s potential to benefit from increased investments in the nation’s CNG infrastructure. Aligned with the Government of India’s objective to elevate natural gas’s contribution to the energy mix from 6.3% to 15% by 2030, the PNGRB has set an ambitious target of 17,700 CNG stations by 2030, a significant rise from the current 5,665 stations.

With oil marketing companies (OMCs) expected to spearhead the construction of CGD infrastructure, the company stands in a strong position to bolster its market presence in the expanding CNG compressor market, analysts suggest.

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To capitalise on emerging opportunities in hydrogen compression, the company has partnered with PDC Machines LLC, USA, to provide diaphragm compressor packages tailored for diverse industries and applications.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.

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Published: 26 Apr 2024, 01:42 PM IST