Q1 2027 Kirloskar Brothers Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew 13% YoY to Rs. 11,049 million, driven by robust demand across domestic and international markets.
- Standalone domestic business delivered strong performance with revenue up 9% YoY, EBITDA up 16% YoY, and PAT up 15% YoY.
- International revenue grew 19% YoY, led by strong execution in SPP USA and Kirloskar Brothers Thailand, with SPP USA seeing traction in data centers, fire, and HVAC projects.
- Order book provides strong visibility: standalone pending orders at Rs. 25,577 million and overseas pending orders at Rs. 15,045 million, with management confident of double-digit revenue growth for FY'27.
- Company is expanding into high-growth areas like nuclear pumps (received orders for primary and secondary circuit pumps), data center modular systems (potential multi-national framework contract with a major US operator), and IoT-based condition monitoring, positioning for future growth.
- Consolidated EBITDA margin moderated to 11.8% (down from prior year), impacted by lower contribution from the services business in SPP UK and losses in RhoDelta.
- Order intake growth was modest at 4% YoY (consolidated) and 3% YoY (standalone), with some orders delayed, though management expects improvement in subsequent quarters.
- Inventory and work-in-progress increased due to foundry modernization, delaying dispatches and impacting revenue growth in Q1.
- International subsidiaries, particularly SPP UK and RhoDelta, are facing margin pressure and delayed execution, with recovery expected only in later quarters.
- Other expenses rose 21% YoY due to digitization and advertisement costs, while finance costs also increased, impacting profitability.
Ladies and Gentlemen, Good day and welcome to week Q1 FY'27 Kirloskar Brothers Limited Conference Call.
(Operatoe Instruction). I now hand the conference award to Mr. Sanjay Kirloskar, Chairman and Managing Director from Kirloskar Brothers Limited.
Thank you.
Good afternoon, everyone. On behalf of Kiloskar Brothers Limited, I extend a very warm welcome to all who have joined us on our call today.
I hope everyone has had an opportunity to go through the financial results and the investor presentation, which have been uploaded on the stock exchange and on the company's website.
On this call, with me, I have Mr. Alok Kirloskar, Managing Director, Kirloskar Brothers International B.V. Ms. Rama Kirloskar, Joint MD Kirloskar Brothers Limited and Kirloskar Ebara Pumps Limited, Mr. Bhavesh Chheda, our Chief Financial Officer, Mr. Devang Trivedi, our Company Secretary, and Strategic Growth Advisors, our Investor Relations Advisors.
Let me begin
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
