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Standalone net sales (including other operating income) of Kennametal India for the quarter ended Sep 2024 has increased 4.85% to Rs 270.40 crore. Sales of Machining solutions segment has gone up 17.78% to Rs 26.50 crore (accounting for 9.80% of total sales). Sales of Hard Metal & Hard Metal Products segment has gone up 3.61% to Rs 243.90 crore (accounting for 90.20% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 26.56% to Rs 40.50 crore. PBIT of Machining solutions reported profit of Rs 1.30 crore compared to loss of Rs 1.00 crore. PBIT of Hard Metal & Hard Metal Products segment rose 18.79% to Rs 39.20 crore (accounting for 96.79% of total PBIT). PBIT margin of Machining solutions segment rose from negative 4.44% to 4.91%. PBIT margin of Hard Metal & Hard Metal Products segment rose from 14.02% to 16.07%. Overall PBIT margin rose from 12.41% to 14.98%. Operating profit margin has jumped from 13.53% to 15.64%, leading to 21.20% rise in operating profit to Rs 42.30 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 26.86% to 26.43%. Purchase of finished goods cost fell from 27.96% to 26.33%. Employee cost decreased from 14.15% to 13.45%. Other expenses rose from 17.67% to 18.54%. Other income up 70.59% to Rs 2.9 crore. PBIDT rose 23.50% to Rs 45.2 crore. Provision for interest remained nil. PBDT rose 23.50% to Rs 45.2 crore. Provision for depreciation rose 10.58% to Rs 11.5 crore. Profit before tax grew 28.63% to Rs 33.70 crore. Provision for tax was expense of Rs 8.7 crore, compared to Rs 9.1 crore. Effective tax rate was 25.82% compared to 34.73%. Profit after tax rose 46.20% to Rs 25.00 crore.
Full year results analysis
Net sales (including other operating income) of Kennametal India has increased 2.12% to Rs 1,099.90 crore. Sales of Machining solutions segment has gone down 2.07% to Rs 146.60 crore (accounting for 13.33% of total sales). Sales of Hard Metal & Hard Metal Products segment has gone up 2.79% to Rs 953.30 crore (accounting for 86.67% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 12.47% to Rs 167.80 crore. PBIT of Machining solutions segment rose 33.33% to Rs 14.40 crore (accounting for 8.58% of total PBIT). PBIT of Hard Metal & Hard Metal Products segment rose 10.84% to Rs 153.40 crore (accounting for 91.42% of total PBIT). PBIT margin of Machining solutions segment rose from 7.21% to 9.82%. PBIT margin of Hard Metal & Hard Metal Products segment rose from 14.92% to 16.09%. Overall PBIT margin rose from 13.85% to 15.26%. Operating profit margin has jumped from 14.07% to 15.57%, leading to 13.07% rise in operating profit to Rs 171.30 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 27.58% to 26.38%. Purchase of finished goods cost rose from 27.30% to 27.65%. Employee cost decreased from 14.05% to 13.60%. Other expenses rose from 16.74% to 17.00%. Other income up 121.15% to Rs 11.5 crore. PBIDT rose 16.66% to Rs 182.8 crore. Provision for interest up 200% to Rs 0.6 crore. Loan funds rose to Rs 3.00 crore as of 30 June 2024 from Rs 2.70 crore as of 30 June 2023. Inventories rose to Rs 270.90 crore as of 30 June 2024 from Rs 244.40 crore as of 30 June 2023. Sundry debtors were higher at Rs 178.10 crore as of 30 June 2024 compared to Rs 142.00 crore as of 30 June 2023. Cash and bank balance rose to Rs 113.10 crore as of 30 June 2024 from Rs 89.50 crore as of 30 June 2023. PBDT rose 16.42% to Rs 182.2 crore. Provision for depreciation rose 12.08% to Rs 43.6 crore. Fixed assets declined from Rs 308.40 crore as of 30 June 2023 to Rs 301.80 crore as of 30 June 2024. Intangible assets declined from Rs 0.30 crore to Rs 0.10 crore. Profit before tax grew 17.86% to Rs 138.60 crore. Provision for tax was expense of Rs 40.8 crore, compared to Rs 29.9 crore. Effective tax rate was 26.97% compared to 25.43%. Profit after tax rose 26% to Rs 110.50 crore.
Cash flow from operating activities decreased to Rs 114.30 crore for year ended June 2024 from Rs 115.80 crore for year ended June 2023. Cash flow used in acquiring fixed assets during the year ended June 2024 stood at Rs 29.40 crore, compared to Rs 47.80 crore during the year ended June 2023. Promoters’ stake was 75.00% as of 30 September 2024 ,compared to 75.00% as of 30 September 2023 . Promoters’ stake was 75.00% as of 30 June 2024 ,compared to 75.00% as of 30 June 2023 .
Management Comments :
Commenting on the results, Vijaykrishnan Venkatesan, Managing Director, Kennametal India said, “In
Q1, our team continued to deliver profitable growth through cost efficiency measures and strong topline
growth. Our financial performance was supported by growth across our businesses with a focus on share
gain initiatives, project solutions and new customer acquisition.”
| Kennametal India : Standalone Results | | Quarter ended | Year ended |
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| Particulars | 202409 | 202309 | Var.(%) | 202406 | 202306 | Var.(%) |
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| Net Sales (including other operating income) | 270.40 | 257.90 | 4.85 | 1,099.90 | 1,077.10 | 2.12 | | OPM (%) | 15.64 | 13.53 | 211 bps | 15.57 | 14.07 | 151 bps | | OP | 42.30 | 34.90 | 21.20 | 171.30 | 151.50 | 13.07 | | Other Inc. | 2.90 | 1.70 | 70.59 | 11.50 | 5.20 | 121.15 | | PBIDT | 45.20 | 36.60 | 23.50 | 182.80 | 156.70 | 16.66 | | Interest | 0 | 0 | - | 0.6 | 0.2 | 200.00 | | PBDT | 45.20 | 36.60 | 23.50 | 182.20 | 156.50 | 16.42 | | Depreciation | 11.5 | 10.4 | 10.58 | 43.6 | 38.9 | 12.08 | | PBT | 33.70 | 26.20 | 28.63 | 138.6 | 117.6 | 17.86 | | PBT before EO | 33.7 | 26.2 | 28.63 | 138.6 | 117.6 | 17.86 | | EO Income | 0 | 0 | - | 12.7 | 0 | - | | PBT after EO | 33.7 | 26.2 | 28.63 | 151.3 | 117.6 | 28.66 | | Taxation | 8.7 | 9.1 | -4.40 | 40.8 | 29.9 | 36.45 | | PAT | 25 | 17.1 | 46.20 | 110.5 | 87.7 | 26.00 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 25 | 17.1 | 46.20 | 110.5 | 87.7 | 26.00 | | EPS (Rs)* | 11.37 | 7.78 | 46.20 | 46.05 | 39.90 | 15.42 | | | * 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 |
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| Kennametal India : Standalone Segment Results | | | Quarter ended | Year ended |
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| % of (Total) | 202409 | 202309 | Var.(%) | % of (Total) | 202406 | 202306 | Var.(%) |
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| Sales | | Machining solutions | 9.80 | 26.50 | 22.50 | 17.78 | 13.33 | 146.60 | 149.70 | -2.07 | | Hard Metal & Hard Metal Products | 90.20 | 243.90 | 235.40 | 3.61 | 86.67 | 953.30 | 927.40 | 2.79 | | Total Reported Sales | 100.00 | 270.40 | 257.90 | 4.85 | 100.00 | 1,099.90 | 1,077.10 | 2.12 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 270.40 | 257.90 | 4.85 | 100.00 | 1,099.90 | 1,077.10 | 2.12 | | PBIT | | Machining solutions | 3.21 | 1.30 | -1.00 | LP | 8.58 | 14.40 | 10.80 | 33.33 | | Hard Metal & Hard Metal Products | 96.79 | 39.20 | 33.00 | 18.79 | 91.42 | 153.40 | 138.40 | 10.84 | | Total PBIT | 100.00 | 40.50 | 32.00 | 26.56 | 100.00 | 167.80 | 149.20 | 12.47 | | Less : Interest | | 0.10 | 0.00 | - | | 0.60 | 0.20 | 200.00 | | Add: Other un-allcoable | | -6.70 | -5.80 | -15.52 | | -15.90 | -31.40 | 49.36 | | PBIT Margin(%) | | Machining solutions | | 4.91 | -4.44 | 935.01 | | 9.82 | 7.21 | 260.82 | | Hard Metal & Hard Metal Products | | 16.07 | 14.02 | 205.35 | | 16.09 | 14.92 | 116.80 | | PBT | 100.00 | 33.70 | 26.20 | 28.63 | 100.00 | 151.30 | 117.60 | 28.66 |
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