Kirloskar Pneumatic soars with 53% profit boost in Q1 FY25

Kirloskar Pneumatic Company Ltd (KPCL), a leading entity in the Air, Refrigeration, and Gas Compression business in India, has reported impressive financial results for the first quarter of the fiscal year 2025. The company has showcased significant growth across various metrics, highlighting its resilience and strategic initiatives.

KPCL’s revenue from operations surged by 13.6% to INR 275 crore in Q1 FY25, compared to INR 242 crore in Q1 FY24. The total income for the quarter was INR 280 crore, marking an increase from INR 248 crore in the previous year’s corresponding quarter. The company’s Profit Before Tax (PBT) witnessed a remarkable growth of 53%, rising to INR 35.9 crore from INR 23.5 crore in Q1 FY24. Similarly, the Net Profit After Tax increased by over 50%, reaching INR 26.9 crore compared to INR 17.9 crore in the same quarter last year.

The order booking for Q1 FY25 stood at INR 421 crore, with the total orders on hand as of July 1, 2024, amounting to INR 1,618 crore. This figure represents a 20% increase from INR 1,347 crore as of July 1, 2023. The company’s basic Earnings Per Share (EPS) improved to INR 4.15 per share, up from INR 2.77 in the previous year.

During the quarter, KPCL entered into a Memorandum of Understanding (MoU) to acquire a controlling interest in Systems & Components, a significant player in the refrigeration packages for the pharmaceutical, chemical, and dairy industries. This acquisition, expected to be completed in Q2 FY25, will expand KPCL’s addressable market and enhance its product offerings. Additionally, the company filed a record 15 Intellectual Properties (IPs) in Q1, reflecting the maturity and innovation within its R&D initiatives.

Project execution across India faced challenges due to an unusually hot summer and the protracted election process. However, the situation began to improve in June 2024, as evidenced by the increased order inflow.

It is evident that KPCL’s strategic acquisitions and robust financial performance underscore its strong market position and growth trajectory. The company’s focus on innovation and expansion into new markets will likely continue to drive its success in the highly competitive Air, Refrigeration, and Gas Compression sectors.

Established in 1958, Kirloskar Pneumatic Company Ltd. offers a diverse range of products, including air, refrigeration, and gas compressors and systems, vapor absorption chillers, and industrial gearboxes. The company serves various industries such as steel, cement, cold chains, food and beverages, pharmaceuticals, railways, defense, and marine. KPCL is also a key player in the CNG business in India. The company has established technology partnerships with leading global companies and research institutes, ensuring cutting-edge solutions and innovations. KPCL has received numerous awards for excellence in quality, innovation, training programs, HR initiatives, and in-house communication.