Kirloskar Oil Engines Ltd (NSE:KIRLOSENG)
₹ 2,101.5 -29.7 (-1.39%) Market Cap: 305.81 Bil Enterprise Value: 343.45 Bil PE Ratio: 56.07 PB Ratio: 8.44 GF Score: 68/100

Q2 2025 Kirloskar Oil Engines Ltd Earnings Call Transcript

Nov 13, 2024 / 10:30AM GMT
Release Date Price: ₹1096.5 (-3.62%)

Key Points

Positve
  • Standalone business net sales grew by 13% year-on-year, indicating strong domestic demand.
  • EBITDA margin improved to 14%, a 450 basis points increase compared to the previous year.
  • Net profit for KOEL standalone increased by 90% year-on-year, reflecting strong financial performance.
  • The Industrial segment grew approximately 8% year-on-year, driven by strong demand from construction OEMs.
  • The distribution and aftermarket business recorded a 10% year-on-year growth, showing enhanced service capabilities.
Negative
  • Quarter-on-quarter decline of 11% in standalone business net sales due to prebuy volumes in the previous quarter.
  • B2C segment declined by 13% due to a planned plant transition, impacting sales.
  • International business in the B2B segment saw a slight decline, with challenges in the power gen side due to changing power scenarios in key markets like South Africa.
  • Working capital increased by INR69 crore, indicating gearing up for future demand but also reflecting higher inventory levels.
  • B2C segment registered a loss before interest and tax of approximately INR6 crore, indicating challenges in maintaining profitability.
Operator

Ladies and gentlemen, good day, and welcome to Kirloskar Oil Engines Limited Q2 FY25 earnings conference call, hosted by Antique Stock Broking. (Operator Instructions) Please note that this conference is being recorded.

I now hand the conference over to Mr. Amit Shah from Antique Stock Broking. Thank you, and over to you, sir.

Amit Shah;Gauri Kirloskar
Antique Stockbroking Ltd. - Analyst;Kirloskar Oil Engines Ltd - Managing Director, Whole Time

Thank you. Good afternoon, everyone. On behalf of Antique Stock Broking Limited, I welcome you all to 2Q FY25 post earnings conference call of Kirloskar Oil Engines Limited. To discuss the results, we have the senior management team of the company represented by Ms. Gauri Kirloskar, Managing Director of the company; Mr. Rahul Sahai, CEO B2B Business; Mr. Aseem Srivastava, CEO B2C Business; and Mr. Sachin Kejriwal, CFO of the company.

I'll hand over the call to Ms. Gauri Kirloskar for her opening remarks, post which we can open the floor for Q&A. Over to you, ma'am.

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