Kirloksar Brothers hits new high on strong earnings; zooms 108% in 3 months

In past three days, the stock of Kirloksar Group company has surged 32% after it posted a solid 57% YoY jump in its consolidated PAT at Rs 142.7 crore in the March quarter

Shares of Kirloksar Brothers (KBL) hit a new high of Rs 1,880.95, as they rallied 11 per cent on the BSE in Thursday’s intra-day trade, in otherwise subdued market. In comparison, the S&P BSE Sensex was up 0.01 per cent at 72,993 at 10:35 am.

In past three days, the stock of Kirloksar Group company has surged 32 per cent after it reported a solid 57 per cent year-on-year (Y-o-Y) jump in its consolidated profit after tax (PAT) at Rs 142.7 crore in March quarter (Q4FY24). It had posted PAT of Rs 90.7 crore in Q4FY23.

Revenue from operations of the company grew 8.8 per cent to Rs 1,223.80 crore, as against Rs 1,124.60 crore a year ago. Earnings before interest, taxes, depreciation and amortisation (Ebitda) margins improved to 19.15 per cent, from 14.23 per cent (Y-o-Y).

 

The board has recommended a dividend of Rs 6 per equity share of Rs 2 each for the financial year 2023-24 (FY24). The company has fixed July 26, 2024 as the record date for determining the entitlement for dividend.

Meanwhile, in past three months, the stock price of KBL has more than doubled, or zoomed 108 per cent. In past one year, it skyrocketed 250 per cent, as compared to 18 per cent rise in the S&P BSE Sensex.

KBL is engaged in providing fluid management solutions globally. The core products of the company are engineered pumps, industrial pumps, agriculture and domestic pumps, valves, and hydro turbines.

The management anticipate increased profitability, driven by an improved business mix, steady commodity prices, calibrated price increases, cost rationalisation measures, a higher proportion of high-margin and reliable services businesses and an improvement in the global supply chain.

This rise in growth is primarily led by rapid urbanisation, surge in industrial activity and ongoing government support to agriculture and infrastructure sectors.

Meanwhile, agriculture, which accounts for nearly 50 per cent of pump end-use demand, is expected to witness robust consumption growth and fuel demand in the pump market. Over 2023-26, pump demand is expected to grow at 5-6 per cent annually led by an acceleration in investment spending and weighted end-use output.

Pumps are essential equipment across industries, including infrastructure and agriculture. Expansion in domestic infrastructure and construction sectors, and a growing demand for technologically-advanced pump sets, will benefit bigger industry players such as KBL. As larger players further strengthen their offerings and provide energy-efficient and smart pumping solutions, the pump industry will witness continued growth, the company had said in its FY23 annual report.