Capitaline

Operating profit margin has declined from 15.77% to 14.15%, leading to 4.92% decline in operating profit to Rs 40.60 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 28.22% to 28.15%. Purchase of finished goods cost fell from 26.51% to 25.13%. Employee cost increased from 13.75% to 14.38%. Other expenses rose from 16.00% to 18.27%.

Other income up 45.45% to Rs 3.2 crore. PBIDT fell 2.45% to Rs 43.8 crore. Provision for interest remained nil. PBDT fell 1.35% to Rs 43.8 crore. Provision for depreciation rose 3.64% to Rs 11.4 crore. Profit before tax down 2.99% to Rs 32.40 crore. Provision for tax was expense of Rs 10.2 crore, compared to Rs 8.5 crore. Effective tax rate was 31.48% compared to 25.45%. Profit after tax fell 10.84% to Rs 22.20 crore.

Sales of Machining solutions segment has gone up 6.49% to Rs 41.00 crore (accounting for 14.29% of total sales). Sales of Hard Metal & Hard Metal Products segment has gone up 5.90% to Rs 246.00 crore (accounting for 85.71% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has slumped 6.68% to Rs 40.50 crore. PBIT of Machining solutions segment fell 52.50% to Rs 1.90 crore (accounting for 4.69% of total PBIT). PBIT of Hard Metal & Hard Metal Products segment fell 2.03% to Rs 38.60 crore (accounting for 95.31% of total PBIT).
PBIT margin of Machining solutions segment fell from 10.39% to 4.63%. PBIT margin of Hard Metal & Hard Metal Products segment fell from 16.96% to 15.69%. Overall PBIT margin fell from 16.03% to 14.11%.

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Kennametal India has increased 5.43% to Rs 557.40 crore. Sales of Machining solutions segment has gone up 10.66% to Rs 67.50 crore (accounting for 12.11% of total sales). Sales of Hard Metal & Hard Metal Products segment has gone up 4.75% to Rs 489.90 crore (accounting for 87.89% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 7.43% to Rs 81.00 crore. PBIT of Machining solutions segment rose 6.67% to Rs 3.20 crore (accounting for 3.95% of total PBIT). PBIT of Hard Metal & Hard Metal Products segment rose 7.46% to Rs 77.80 crore (accounting for 96.05% of total PBIT).

PBIT margin of Machining solutions segment fell from 4.92% to 4.74%. PBIT margin of Hard Metal & Hard Metal Products segment rose from 15.48% to 15.88%. Overall PBIT margin rose from 14.26% to 14.53%.

Operating profit margin has jumped from 14.68% to 14.87%, leading to 6.83% rise in operating profit to Rs 82.90 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 27.55% to 27.31%. Purchase of finished goods cost fell from 27.22% to 25.72%. Employee cost decreased from 13.94% to 13.93%. Other expenses rose from 16.82% to 18.40%.

Other income up 56.41% to Rs 6.1 crore. PBIDT rose 9.20% to Rs 89 crore. Provision for interest remained nil. Loan funds declined from Rs 2.80 crore as of 31 December 2023 to Rs 2.50 crore as of 31 December 2024. Inventories rose to Rs 277.90 crore as of 31 December 2024 from Rs 250.40 crore as of 31 December 2023. Sundry debtors were higher at Rs 168.00 crore as of 31 December 2024 compared to Rs 158.00 crore as of 31 December 2023. Cash and bank balance rose to Rs 206.70 crore as of 31 December 2024 from Rs 112.80 crore as of 31 December 2023.

PBDT rose 9.88% to Rs 89 crore. Provision for depreciation rose 7.01% to Rs 22.9 crore. Fixed assets declined from Rs 299.90 crore as of 31 December 2023 to Rs 291.00 crore as of 31 December 2024. Profit before tax grew 10.91% to Rs 66.10 crore. Provision for tax was expense of Rs 18.9 crore, compared to Rs 17.6 crore. Effective tax rate was 28.59% compared to 29.53%.Profit after tax rose 12.38% to Rs 47.20 crore.

Equity capital stood at Rs 22.00 crore as of 31 December 2024 to Rs 22.00 crore as of 31 December 2023. Per share face Value remained same at Rs 10.00.

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

Cash flow from operating activities increased to Rs 85.30 crore for YTD ended December 2024 from Rs 31.60 crore for YTD ended December 2023. Cash flow used in acquiring fixed assets during the YTD ended December 2024 stood at Rs 12.10 crore, compared to Rs 10.30 crore during the YTD ended December 2023.

Quarter ended

Year to Date

Year ended

Particulars

202412

202312

Var.(%)

202412

202312

Var.(%)

202406

202306

Var.(%)

Net Sales (including other operating income)

287.00

270.80

5.98

557.40

528.70

5.43

1,099.90

1,077.10

2.12

OPM (%)

14.15

15.77

-162 bps

14.87

14.68

20 bps

15.57

14.07

151 bps

40.60

42.70

-4.92

82.90

77.60

6.83

171.30

151.50

13.07

Other Inc.

3.20

2.20

45.45

6.10

3.90

56.41

11.50

5.20

121.15

PBIDT

43.80

44.90

-2.45

89.00

81.50

9.20

182.80

156.70

16.66

Interest

0.5

0.6

0.2

200.00

PBDT

43.80

44.40

-1.35

89.00

81.00

9.88

182.20

156.50

16.42

Depreciation

11.4

3.64

22.9

21.4

7.01

43.6

38.9

12.08

PBT

32.40

33.40

-2.99

66.1

59.6

10.91

138.6

117.6

17.86

PBT before EO

32.4

33.4

-2.99

66.1

59.6

10.91

138.6

117.6

17.86

EO Income

12.7

PBT after EO

32.4

33.4

-2.99

66.1

59.6

10.91

151.3

117.6

28.66

Taxation

10.2

8.5

20.00

18.9

17.6

7.39

40.8

29.9

36.45

PAT

22.2

24.9

-10.84

47.2

12.38

110.5

87.7

26.00

P/(L) from discontinued operations net of tax

Net profit after discontinued operations

22.2

24.9

-10.84

47.2

12.38

110.5

87.7

26.00

EPS (Rs)*

10.10

11.33

-10.84

21.48

19.11

12.38

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

Quarter ended

Year to Date

Year ended

% of (Total)

202412

202312

Var.(%)

% of (Total)

202412

202312

Var.(%)

% of (Total)

202406

202306

Var.(%)

Sales

Machining solutions

14.29

41.00

38.50

6.49

12.11

67.50

61.00

10.66

13.33

146.60

149.70

-2.07

Hard Metal & Hard Metal Products

85.71

246.00

232.30

5.90

87.89

489.90

467.70

4.75

86.67

953.30

927.40

2.79

Total Reported Sales

100.00

287.00

270.80

5.98

100.00

557.40

528.70

5.43

100.00

1,099.90

1,077.10

2.12

Less: Inter segment revenues

0.00

Net Sales

100.00

287.00

270.80

5.98

100.00

557.40

528.70

5.43

100.00

1,099.90

1,077.10

2.12

PBIT

Machining solutions

4.69

1.90

4.00

-52.50

3.95

3.20

3.00

6.67

8.58

14.40

10.80

33.33

Hard Metal & Hard Metal Products

95.31

38.60

39.40

-2.03

96.05

77.80

72.40

7.46

91.42

153.40

138.40

10.84

Total PBIT

100.00

40.50

43.40

-6.68

100.00

81.00

75.40

7.43

100.00

167.80

149.20

12.47

Less : Interest

0.00

0.50

0.10

0.50

-80.00

0.60

0.20

200.00

Add: Other un-allcoable

-8.10

-9.50

14.74

-14.80

-15.30

3.27

-15.90

-31.40

49.36

PBIT Margin(%)

Machining solutions

4.63

10.39

-575.55

4.74

4.92

-17.73

9.82

7.21

260.82

Hard Metal & Hard Metal Products

15.69

16.96

-126.98

15.88

15.48

40.08

16.09

14.92

116.80

PBT

100.00

32.40

33.40

-2.99

100.00

66.10

59.60

10.91

100.00

151.30

117.60

28.66