KSB Pumps, the Indian subsidiary of Klein Schanzlin & Becker (KSB), Germany for the quarter ended June 2012 has registered strong earnings growth (up 51% to Rs 17.46 crore) on a near flat sale (up 1% to Rs 189.86 crore). Sharp growth in bottom-line is largely on account of 570 bps jump in operating margin which lifted operating profit up by 80% to Rs 24.72 crore.

• Operating income was up by 1% to Rs 189.86 crore, but value of production were lower by 7% to Rs 181.58 crore. It seems the marginal growth in sales was largely on account of liquidation of stocks of earlier period.

• Strong expansion in margin seems facilitated by order/product mix as well as benefit of liquidation of earlier period stocks. While the staff cost as % to sales net of stocks was flat at 14.2%, the material cost was lower by 290 bps (to 51.7%) and other expenses was lower by 370 bps (to 20.5%) respectively. Thus gained the operating margin expanded to 13% up from 7.3% in corresponding previous quarter, which was relatively lower.

• The core pumps business has registered 133% jump in segment profit to Rs 19.16 crore, on segment revenue of Rs 151.96 crore, which was up by just 1%. Jump in segment profit despite nearly flat sales was largely on account of spike in segment margin to 12.6% from 5.4% in corresponding previous period. The Valves business too has registered impressive show at segment profit level, which was up by 189% (to Rs 5.23 crore) on a sale of Rs 37.64 crore, a rise of 4%.

• Other income was lower by 6% to Rs 6.56 crore. The interest cost was up by 344% to Rs 1.51 crore and the depreciation was higher by 7% to Rs 5.78 crore. Thus the growth at PBT got moderated to 60% to Rs 23.99 crore.

• Taxation for the quarter was up by 91% to Rs 6.53 crore and the tax rate was higher at 27.2% compared to 22.8% in corresponding previous period. Thus the net profit was finally higher by 51% to Rs 17.46 crore.

Sales stood at Rs 353.58 crore, up 0%. But the operating profit was up by 35% to Rs 38.68 crore as OPM expand by 280 bps (to 10.9%). Other income though stands higher by 27%, the interest cost and depreciation was higher by 371% and 7% respectively. Thus the PBT stood higher by 34% to Rs 35.95 crore. The taxation was up 41% to Rs 10.40 crore. Thus the net profit was up by 31% to Rs 25.55 crore.

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

The stock hovers around Rs 199.

KSB Pumps : Results

KSB Pumps : Segment results