Kirloskar Pneumatic Q4'FY 12 standalone net sales grew by mere 4% YoY to Rs 194.18 crore primarily due to stagnant growth in core compression systems business despite 40% growth from the Transmission product business. Also, margins crashed by over 1000 bps YoY to 10.3% leading to 48% fall in operating profit to Rs 20.22 crore and further net profit was lower by 46% to Rs 12.63 crore with help of fall in effective tax rate during the quarter.

However, on full year basis the Company fared well despite disappointing Q4 as the standalone net sales grew by robust 36% YoY to Rs 666.61 crore for the twelve months ended March 2012. Also, margins were held-up at 14% YoY even after 130 bps dip lead to 23% growth in operating profit to Rs 93.81 crore. Eventually, with the sharp rise in other income coupled with fall in effective tax rate for the full year helped to post 41% YoY growth in net profit to Rs 61.91 crore.

Standalone Quarterly Performance:

Net sales grew by 4% YoY to Rs 194.18 crore for the quarter ended March 2012 on the back of muted growth in its dominant Compression system business (86% of net sales) to Rs 167.3 crore. However, there was 40% YoY growth in Transmission product business to Rs 26.88 crore. Notably, operating margins crashed by over 1000 bps to 10.3% on account of 880 bps rise in consumption cost coupled with the 140 bps rise in staff cost as percentage to sales and net of stock adjustments. As a result there was 48% YoY fall in operating profit to Rs 20.22 crore. Other income was at Rs 1.44 crore witnessed 12% YoY rise.

At PBIT level margins from the Compression systems business fell by 1060 bps to 15.7% led to 41% fall in segment profit to Rs 26.23 crore. More importantly, Transmission products business posted segment profit Rs 0.37 crore compared to Rs 4.58 crore segment loss in the corresponding previous period.

After factoring interest cost (down 33% YoY) Rs 0.12 crore and Rs 3.57 crore depreciation (down by 26% YoY) PBT fell by 49% to Rs 17.97 crore. However, the fall in effective tax rate by 320 bps to 29.7% led to 47% fall in standalone net profit to Rs 12.63 crore.

Standalone Yearly Performance:

Net sales grew by 36% YoY to Rs 666.61 crore for the twelve months ended March 2012 on the back of growth across the business. At operating level margins hold-up well at 14% with marginal 130 bps dip YoY leading to 23% growth in operating profit to Rs 93.81 crore. Notably, with sharp rise in other income (158% YoY) to Rs 7.91 crore coupled with 37% decline in interest cost to Rs 1.19 crore and marginal 3% incline in depreciation to Rs 12.06 crore there was 35% growth in PBT to Rs 88.47 crore. Further, the fall in effective tax rate by 290 bps YoY to 30.0% net profit grew by 41% YoY to Rs 61.91 crore.

Other Information:

• The scrip was down by 3.58% to Rs 439.85 at BSE, India on 24^th April 2012.
• The Consolidated results for the year ended March 31^st 2012 includes results of Kirloskar RoadRailer Ltd, which became 100% subsidiary w.e.f May 6^th 2011.
• Kirloskar Brothers Investments Ltd (Promoter) acquired 1,01,000 (0.79%) equity shares of the company on 30^th March 2012 which were not credited to demat account till 31^st March 2012 and hence not considered in the aforesaid holding.
• The Company has recommended dividend @ 120% (Rs. 12/- per share).

Kirloskar Pneumatic - Standalone Financial Results

Segment Financial Results: Kirloskar Pneumatic

Consolidated Financial Results: Kirloskar Pneumatic