Kirloskar Pneumatic conducted their Q3 FY23 earnings conference call on 25th January 2023
Here are the key highlights ππ»ππ»ππ»
Here are the key highlights ππ»ππ»ππ»
β’ Overview:
- Sales YTD are about 41% higher than what it was the previous year led by strong growth in exports
- Execution during Q3 which is generally a short quarter with many holidays was stepped up to meet the customer needs, particularly of Gas packages
- Sales YTD are about 41% higher than what it was the previous year led by strong growth in exports
- Execution during Q3 which is generally a short quarter with many holidays was stepped up to meet the customer needs, particularly of Gas packages
β General business environment of the company looks stable and what is generally been seen as a BANI world β Brittle, Anxious, Non-linear and Incomprehensible world
- The growth has been largely driven by Gas package shipments to the MENA region
- The growth has been largely driven by Gas package shipments to the MENA region
β The overall order bank improved to Rs. 1,300 Cr plus compared to the Rs. 1,200 Cr
β’ Capex:
- Capex spent so far Rs. 48-49 Cr as against the overall plan for the year of above Rs. 60 Cr
- Co. expect to complete this during the course of the year
- When completed this will give co. the capacity and capability to meet the next yearβs ambitious budgets
- Capex spent so far Rs. 48-49 Cr as against the overall plan for the year of above Rs. 60 Cr
- Co. expect to complete this during the course of the year
- When completed this will give co. the capacity and capability to meet the next yearβs ambitious budgets
β’ Segment wise business:
Air Compressor -
- Air Compressor business continues to grow strongly and delivering a superior solution to various niche applications
Air Compressor -
- Air Compressor business continues to grow strongly and delivering a superior solution to various niche applications
β Co. saw the first sign of export picking up in the Air Compressor business with the strong enquiry pipeline & hope to see this converting into orders
Refrigeration and Compression Systems -
- There was a strong revival of compressor demand from the cold chain, ice plants, food processing, etc
- Co. finalized few large package orders for execution in FY 24 in the refinery space & this boards well for execution for next year
- There was a strong revival of compressor demand from the cold chain, ice plants, food processing, etc
- Co. finalized few large package orders for execution in FY 24 in the refinery space & this boards well for execution for next year
Process Gas Compression Systems -
- Completed the installation of two large packages at site in the Middle East region during the quarter
- Completed the installation of two large packages at site in the Middle East region during the quarter
- The dispatch of CNG packages continues to be sluggish, though co. see indication that this could pick up in Q4 with the declining price of gas in the global market
βOutlook for Q4: The moderating gas price should once again revive CNG installation pace & co. expect to finalize more orders in the overseas market
β Co. continues to have strong order enquiries & this boards well for the future. Co. will also benefit from the larger range of products that co. has brought to the market during this year
β’ Financials:
- Currently co. has a net cash position of over Rs. 200 Crores & no borrowings
- Currently co. has a net cash position of over Rs. 200 Crores & no borrowings
βDuring past one year, Co. incurred a capex of over Rs. 90 Cr, paid dividend close to Rs. 25 Cr & also repaid the loan at the end of the last quarter of the last financial year to the tune of Rs. 40 Cr
- Margin in domestic & export is around the same, if we leave out Q1 order
- Margin in domestic & export is around the same, if we leave out Q1 order
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