KSB Pumps, the Indian subsidiary of Klein Schanzlin & Becker (KSB), Germany has registered a earnings growth of 3% for the quarter ended March 2012 to Rs 8.09 crore. The revenue for the quarter though was lower by 1% to Rs 164.60 crore, the growth at bottomline was largely facilitated by nearly flat operating margin (up 10 bps to 9%), higher other income and lower tax incidence.

• Marginal 10 bps expansion in operating margin was largely on account of lower material cost. Though staff cost and other expenses which as a proportion to sales net of stocks were higher by 390 bps (to 17.1%) and 350 bps (to 25.3%) respectively which was more than offset by lower material cost leading to just a marginal 10 bps expansion in OPM.

• On segment basis while the valves business continues to do well at both revenue as well as profits level even while the pumps revenue was bit subdued. The pump segment registered a profit of 6.04 crore (down 31%) impacted by 6% fall in sales as well as margin erosion. On the other hand the segment profit of valves more than doubled (up 118%) albeit on low base to Rs 6.03 crore facilitated by 16% rise in sales as well as margin expansion. It seems the competitive pressure has eased for Valves paving for better realization and profits for this business division.

• Other income jumped by 72% to Rs 4.52 crore. Thus spurred the PBIDT was up by 11% to Rs 19.36 crore. The interest cost was up by 397% to Rs 1.74 crore and the depreciation was higher by 7% to Rs 5.66 crore. Thus the growth at PBT got moderated to 1% to Rs 11.96 crore. EO for the quarter as well as corresponding previous period was nil.

• Taxation for the quarter was down by 2% to Rs 3.87 crore. Thus the net profit was finally higher by 3% to Rs 8.09 crore.

Sales were higher by 22% to Rs 751.25 crore and operating profit was down by 11% to Rs 74.08 crore as OPM contract by 370 bps (to 9.9%). Other income though stands higher by 9%, the interest cost and depreciation was higher by 425% and 6% respectively. Thus the PBT was lower by 16% to Rs 62.29 crore. The taxation was down 15% to Rs 19.31 crore. Thus the net profit was lower by 17% to Rs 42.98 crore.

Consolidated sales were up 22% to Rs 753.61 crore and with OPM contract to 10.2% (from 13.8% in CY2010) the operating profit was lower by 10% to Rs 76.51 crore. Eventually the net profit was lower by 16% to Rs 48.95 crore.

Promoter share holding as end of March 2012 was unchanged at 66.80% compared to corresponding previous period.

The stock hovers around Rs 226.95.

KSB Pumps : Results