Results     10-May-24
Analysis
Kennametal India
Net jumps 145% on good operating show, lower depreciation and tax incidence
Standalone net sales (including other operating income) of Kennametal India for the quarter ended Mar 2024 has increased 5.12% to Rs 268.80 crore.  Operating profit margin has jumped from 11.93% to 16.74%, leading to 47.54% rise in operating profit to Rs 45.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 26.64% to 24.32%.   Purchase of finished goods cost fell from 30.75% to 28.40%.   Employee cost decreased from 14.35% to 13.55%.   Other expenses rose from 16.44% to 17.51%.   Other income up 257.14% to Rs 5 crore.  PBIDT rose 56.74% to Rs 50 crore.  Provision for interest remained nil.  PBDT rose 56.43% to Rs 49.9 crore.  Provision for depreciation rose 10.10% to Rs 10.9 crore.  Profit before tax grew 77.27% to Rs 39.00 crore.  Provision for tax was expense of Rs 13.4 crore, compared to Rs 6.4 crore.  Effective tax rate was 25.92% compared to 29.09%. Profit after tax rose 145.51% to Rs 38.30 crore.  

Sales of Machining solutions segment has gone up 17.95% to Rs 32.20 crore (accounting for 11.98% of total sales).  Sales of Hard metal and hard metal products segment has gone up 3.59% to Rs 236.60 crore (accounting for 88.02% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 44.63% to Rs 44.40 crore.  PBIT of Machining solutions segment rose 228.57% to Rs 2.30 crore (accounting for 5.18% of total PBIT).  PBIT of Hard metal and hard metal products segment rose 40.33% to Rs 42.10 crore (accounting for 94.82% of total PBIT).  

PBIT margin of Machining solutions segment rose from 2.56% to 7.14%.  PBIT margin of Hard metal and hard metal products segment rose from 13.13% to 17.79%.  Overall PBIT margin rose from 12.01% to 16.52%.  

For year-to-date (YTD) results analysis


Net sales (including other operating income) of Kennametal India for nine month ended Mar 2024 has declined 0.04% to Rs 797.50 crore.  Operating profit margin has jumped from 14.41% to 15.37%, leading to 6.61% rise in operating profit to Rs 122.60 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 28.60% to 26.45%.   Purchase of finished goods cost rose from 27.23% to 27.62%.   Employee cost increased from 13.49% to 13.81%.   Other expenses rose from 16.60% to 17.05%.   Other income up 134.21% to Rs 8.9 crore.  PBIDT rose 10.69% to Rs 131.5 crore.  Provision for interest remained nil.  PBDT rose 10.19% to Rs 130.9 crore.  Provision for depreciation rose 14.95% to Rs 32.3 crore.  Profit before tax grew 8.71% to Rs 98.60 crore.  Provision for tax was expense of Rs 31 crore, compared to Rs 21.7 crore.  Effective tax rate was 27.85% compared to 23.93%. Profit after tax rose 16.38% to Rs 80.30 crore.  

Sales of Machine Tools(SPM) segment has gone down 11.57% to Rs 93.20 crore (accounting for 11.69% of total sales).  Sales of Hard Metal & Hard Metal Products segment has gone up 1.72% to Rs 704.30 crore (accounting for 88.31% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 3.54% to Rs 119.80 crore.  PBIT of Machine Tools(SPM) segment fell 10.17% to Rs 5.30 crore (accounting for 4.42% of total PBIT).  PBIT of Hard Metal & Hard Metal Products segment rose 4.28% to Rs 114.50 crore (accounting for 95.58% of total PBIT).  

PBIT margin of Machine Tools(SPM) segment rose from 5.60% to 5.69%.  PBIT margin of Hard Metal & Hard Metal Products segment rose from 15.86% to 16.26%.  Overall PBIT margin rose from 14.50% to 15.02%.  



Declared an Interim Dividend of INR 30/- per equity share of INR 10/- each (300%) for the financial year 2023-24 and fixed the Record Date for the purpose of ascertaining the eligibility of shareholders for the payment of Interim Dividend as May 23, 2024. 

Promoters’ stake was 75.00% as of 31 March 2024 ,compared to 75.00% as of 31 March 2023 .  


 


Management Comments :
Commenting on the results, Vijaykrishnan Venkatesan, Managing Director, KIL said, “Our performance this quarter reflects the continued momentum in the domestic market. This quarter’s profit before tax is a result of strong domestic market demand and higher volumes and cost control initiatives. We continue to execute on our strategic imperatives of commercial excellence and operational excellence to drive profitable growth in our target end use segments.” 

Kennametal India : Standalone Results
Quarter endedYear to DateYear ended
Particulars202403202303Var.(%)202403202303Var.(%)202306202206Var.(%)
Net Sales (including other operating income)268.80255.705.12797.50797.80-0.041,077.10990.708.72
OPM (%)16.7411.93481 bps15.3714.4196 bps14.0718.06-399 bps
OP45.0030.5047.54122.60115.006.61151.50178.90-15.32
Other Inc.5.001.40257.148.903.80134.215.209.40-44.68
PBIDT50.0031.9056.74131.50118.8010.69156.70188.30-16.78
Interest0.10-0.60-0.20-
PBDT49.9031.9056.43130.90118.8010.19156.50188.30-16.89
Depreciation10.99.910.1032.328.114.9538.935.78.96
PBT39.0022.0077.2798.690.78.71117.6152.6-22.94
PBT before EO392277.2798.690.78.71117.6152.6-22.94
EO Income12.70-12.70-00-
PBT after EO51.722135.00111.390.722.71117.6152.6-22.94
Taxation13.46.4109.383121.742.8629.938.5-22.34
PAT38.315.6145.5180.36916.3887.7114.1-23.14
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations38.315.6145.5180.36916.3887.7114.1-23.14
EPS (Rs)*13.147.1085.1932.3731.393.1039.9051.92-23.14
* EPS is on current equity of Rs 21.98 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Kennametal India : Standalone Segment Results
td>-
 Quarter endedYear to DateYear ended
% of (Total)202403202303Var.(%)% of (Total)202403202303Var.(%)% of (Total)202306202206Var.(%)
Sales
Machining solutions11.9832.2027.3017.9511.6993.20105.40-11.5713.90149.70146.502.18
Hard metal and hard metal products88.02236.60228.403.5988.31704.30692.401.7286.10927.40844.209.86
Total Reported Sales100.00268.80255.705.12100.00797.50797.80-0.04100.001,077.10990.708.72
Less: Inter segment revenues 0.000.00- 0.000.00 0.000.00-
Net Sales100.00268.80255.705.12100.00797.50797.80-0.04100.001,077.10990.708.72
PBIT
Machining solutions5.182.300.70228.574.425.305.90-10.177.2410.8020.60-47.57
Hard metal and hard metal products94.8242.1030.0040.3395.58114.50109.804.2892.76138.40157.80-12.29
Total PBIT100.0044.4030.7044.63100.00119.80115.703.54100.00149.20178.40-16.37
Less : Interest0.100.00-0.600.00-0.200.00-
Add: Other un-allcoable7.40-8.70LP-7.90-25.0068.40-31.40-25.80-21.71
PBIT Margin(%)
Machining solutions 7.142.56457.88 5.695.608.90 7.2114.06-684.70
Hard metal and hard metal products 17.7913.13465.89 16.2615.8639.94 14.9218.69-376.88
PBT100.0051.7022.00135.00100.00111.3090.7022.71100.00117.60152.60-22.94
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