Kirloskar Ferrous soars after turnaround Q1 outcome

8 Aug 2022 , 02:37 PM

On a consolidated basis, net sales rose 44.5% quarter-on-quarter (QoQ) to Rs 1493.82 crore in Q1 June 2022. Profit before tax (PBT) climbed 65.2% QoQ to Rs 125.61 crore in Q1 June 2022. EBITDA stood at Rs 186.7 crore for Q1 FY23 as against Rs 117.5 crore for Q4 FY22, a 59% increase QoQ. EBITDA margin was at 12% for FY22 vs 11% FY21. Total expense jumped 42.5% QoQ to Rs 1320.06 crore in Q1 FY23. Cost of raw material consumed stood at Rs 900.98 crore (up 42.2% QoQ) and employee expenses stood at Rs 73.18 crore (up 67.5% QoQ). In Financial Year 2021 -2022 Kirloskar Ferrous lndustries acquired management control over ISMT on 10 March 2022. Consequently, disclosure of the consolidated financial results for quarter ended 30 June 2021 is not applicable. On a standalone basis, the companys net profit declined 39.89% to Rs 83.85 crore while net sales rose 15.44% to Rs 949.88 crore in Q1 June 2022 over Q1 June 2021. PBT fell 41% to Rs 109.23 crore during the period under review. Sequentially, PAT and PBT rose 28% while net sales rose 5% over Q4 FY23. R.V.Gumaste, managing director, Kirloskar Ferrous lndustries, said Q1 has been a steady quarter with 5% growth on topline q-o-q. Our margins on the standalone business have improved through the cost-saving initiatives and effective management of inventories. We just completed the upgradation of our mini blast furnace -2 and all the other projects are progressing satisfactorily. On the consolidated side, the performance was satisfactory too, with around 44% growth on the top line. On the ISMT front, we are experiencing good traction in orders with the financial restructuring done in the last quarter. We are quite optimistic about the execution of our plans for FY 23. Kirloskar Ferrous Industries is one of Indias largest castings and pig iron manufacturers. The company caters to various industry sectors, such as tractors, automobiles and diesel engines. Powered by Capital Market – Live News