Kirloskar Industries Limited reported its financial results for the third quarter of FY25, showcasing a 4.2% year-on-year (YoY) growth in consolidated revenue from operations, which stood at ₹1,613.5 crore compared to ₹1,548.2 crore in Q3 FY24.
However, the company witnessed a significant decline in profitability as its net profit dropped by 52.4% YoY to ₹24 crore, down from ₹50.5 crore in the corresponding quarter of the previous year. The poor performance was primarily attributed to weak EBITDA and contracting margins.
EBITDA and Margins:
- Q3 FY25 EBITDA: ₹173 crore, down from ₹227 crore in Q3 FY24
- EBITDA Margin: 10.72% versus 14.61% YoY
Key Metrics:
- Revenue from operations: ₹1,613.5 crore, up 4.2% YoY
- Net profit: ₹24 crore, down 52.4% YoY from ₹50.5 crore
- Total expenses: ₹1,546.4 crore, reflecting an increase due to higher material and employee costs
The company’s profit decline came amid a challenging cost environment and subdued operational performance, affecting its overall margins.
Stock Performance:
On Monday, February 10, 2025, shares of Kirloskar Industries fell nearly 5% to trade at ₹3,749 on the NSE, reflecting investor concerns over its weak earnings. The company’s current market capitalization stands at ₹3,903 crore, with the stock trading in the day range of ₹3,606 to ₹3,911.
Outlook:
Kirloskar Industries aims to implement strategic measures to enhance profitability and address its cost structure, targeting a recovery in upcoming quarters.
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