PUNE: Kirloskar Ferrous Industries Limited (KFIL) has announced its unaudited financial results for the second quarter that ended September 30, 2023. The company, which is one of India’s leading castings and pig iron manufacturers, reported a total income of INR 882 crore and a net profit of INR 57 crore for the quarter. Despite the challenges posed by high input commodity prices, KFIL expects normalized production capacities for the second half of the year.
Commenting on the Q2 FY 2024 results, R.V. Gumaste, Managing Director of KFIL, said, “This has been a challenging quarter, especially due to the pressure of high input commodity prices. All our planned shutdowns are done now, and we expect normalized production capacities for the second half of the year. Casting demand for commercial vehicles and off-highway vehicles continued strong, however, demand from the tractor industry was subdued. During the quarter, we completed the acquisition of Oliver Engineering, and we have taken management control as of September 29, 2023.“
KFIL’s standalone Q2 FY 2023-24 financial performance showed operating revenue at INR 879.8 crore, a 5% decrease Q-o-Q, while EBITDA was at INR 132.7 crore, a 5% increase Q-o-Q. The EBITDA margin was at 15% for Q2 FY24, compared to 14% for Q1 FY24. The company’s PBT was at INR 75.9 crore for Q2 FY24, a 7% increase Q-o-Q, while PAT was at INR 56.9 crore for Q2 FY24, a 6% increase Q-o-Q.
In terms of consolidated Q2 FY 2023-24 financial performance, KFIL reported operating revenue at INR 1,559.7 crore, a 4% increase Q-o-Q, while EBITDA was at INR 252.3 crore, a 22% increase Q-o-Q. The EBITDA margin was at 16% for Q2 FY24, compared to 14% for Q1 FY24. The company’s PBT (before exceptional item) was at INR 169.8 crore for Q2 FY24, a 25% increase Q-o-Q, while PAT was at INR 81.7 crore for Q2 FY24, a 12% decrease Q-o-Q.
KFIL, founded in 1991, caters to various industry sectors, such as tractors, automobiles, and diesel engines. The company’s manufacturing facilities at Koppal, Hiriyur, and Solapur have the unique capability of producing a range of products that include grey iron castings up to 300 kg pieces. The company also produces various grades of pig iron such as SG iron grade, basic steel grade, and foundry grade. KFIL is expanding its manufacturing capacities in pig iron and casting. The company supplies fully machined castings and has added a coke oven manufacturing facility with waste-heat recovery power.
KFIL’s Q2 FY 2024 financial results show a challenging quarter due to high input commodity prices. However, the company expects normalized production capacities for the second half of the year. The acquisition of Oliver Engineering has been completed, and the management control has been taken as of September 29, 2023. KFIL is expanding its manufacturing capacities in pig iron and casting, and the company supplies fully machined castings.
