Kirloskar Brothers Ltd Q3FY25 Results, Concall : Revenue Up 19%, Strong Order Book | Exclusive 2025

Kirloskar Brothers Ltd Concall – February 2025

Financial Performance Overview

Kirloskar Brothers Ltd (KBL) delivered strong financial results for Q3FY25. The company reported a 19% increase in consolidated revenues, reaching ₹1,144 crores compared to the same period last year. For the first nine months of FY25, revenues grew 16% year-on-year to ₹3,211 crores.

EBITDA for Q3FY25 stood at ₹183 crores, marking a 32% YoY growth, with an improved EBITDA margin of 16%. The nine-month EBITDA reached ₹466 crores, reflecting a 14.5% margin.

Profit After Tax (PAT) saw a significant rise of 43.9% YoY in Q3FY25, touching ₹119 crores. For the first nine months, PAT grew by 42.7% to ₹281 crores.

Kirloskar Brothers Order Book and Business Performance

KBL’s order book showed 19% growth compared to last year, reflecting strong demand and consistent execution. Key highlights include:

• Standalone domestic revenue grew 3% YoY to ₹661 crores in Q3FY25.
• Subsidiary performance: KCPL saw over 75% growth, while Karad Projects & Motors recorded 23% growth, driven by export demand.
• Standalone pending orders stood at ₹1,874 crores (excluding small pumps).

International Business Expansion

The company’s international operations continued to grow, with Q3FY25 revenues increasing by 46% YoY and 9MFY25 revenues up by 23%. This growth was supported by steady execution in SPP UK and Dutch entities.

Key growth areas include:

• Demand from data centers, fire safety, and HVAC sectors in the US.
• Expansion in green steel projects in Europe.
• The overseas order backlog stood at ₹1,127 crores.

Operational Efficiency and Profitability

KBL continues to focus on operational efficiencies, contributing to improved margins. The company maintains its double-digit revenue growth guidance for FY25, with sustained focus on cost management and operational improvements.

Key points:

• EBITDA margins are expected to remain strong but may vary each quarter.
• Ongoing efforts to enhance operating efficiencies.

Market Challenges and Industry Trends

While the domestic market showed some fluctuations, the company remains confident in long-term growth. Due to the nature of KBL’s engineered-to-order products, quarter-on-quarter analysis may not always reflect overall business health.

• The international supply chain is stabilizing, but continued focus on the oil and gas sector remains critical.
• The Thai business performance remains under observation, with plans for improvement.

New Developments and Strategic Initiatives

To strengthen its market position, KBL has introduced multiple initiatives:

• 50 new models launched in the small pump business during the quarter.
• Increased focus on after-sales service to enhance profitability, particularly in the UK and international markets.
• Exploring new opportunities in the nuclear energy sector, specifically in small modular reactors.

Future Outlook and Growth Plans

KBL remains optimistic about future growth opportunities, particularly in key industries such as building and construction, water and irrigation, and power. The company aims to stabilize revenue through long-term service contracts and efficiency improvements.

• Investment in service contracts to manage fixed costs and generate stable revenue.
• Expected growth in service revenue across markets, including UK, South Africa, and emerging European regions.

Frequently Asked Questions (FAQs)

1. How has Kirloskar Brothers Ltd performed financially in Q3FY25?

KBL reported 19% YoY revenue growth, with total revenues of ₹1,144 crores in Q3FY25. EBITDA and PAT also saw strong growth at 32% and 43.9% YoY, respectively.

2. What are the key drivers of international revenue growth?

The company’s international revenues grew by 46% in Q3FY25, driven by increased demand from data centers, HVAC, fire safety sectors in the US, and green steel projects in Europe.

3. What is KBL’s strategy to maintain profitability?

KBL is focusing on operational efficiency, expanding service revenues, and diversifying into new segments like nuclear energy to ensure sustained profitability.

4. What is the outlook for the coming quarters?

The company expects continued revenue growth, driven by a strong order book and demand across multiple sectors. Service expansion and operational efficiency will be key areas of focus.

Kirloskar Brothers Ltd is well-positioned for further growth, backed by strong demand, innovation, and strategic expansion in domestic and international markets.

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