Kirloskar Brothers Limited — Investor Meet, 19-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Kirloskar Brothers Limited reported consolidated revenues of Rs. 1,144 Cr for Q3 FY25, reflecting a year-on-year growth of 19%. For the nine months of FY25, revenues reached Rs. 3,211 Cr, up 16% from the previous year. EBITDA surged by 32% to Rs. 183 Cr, with a margin improvement to 16%. Profit after tax for the quarter was Rs. 119 Cr, a 43.9% increase year-on-year. Continuous operational efficiencies and strong performance internationally were key drivers.

**Future Outlook and Growth Drivers:** The company remains optimistic about double-digit revenue growth for FY25, bolstered by strong order books and strategic focuses in sectors such as building construction, industrials, and a growing emphasis on international markets, particularly in oil & gas and data centers.

**Order Book and Operational Updates:** Domestic order receipts rose by 12%, with pending orders at Rs. 1,874 Cr not including small pumps. Internationally, the order book showed a healthy inflow, with Rs. 1,127 Cr pending primarily from the UK and US.

**Analyst Q&A Insights:** Analysts probed the sustainability of EBITDA margins and volatility in domestic sales. Management maintained a cautious yet positive outlook regarding supply chain normalization and highlighted ongoing operational efficiencies to sustain margins. Economic activities in sectors like irrigation and thermal power have shown signs of recovery.

**Strategic Focus Areas:** Management highlighted significant growth opportunities in the UK and expansions in services, emphasizing a need for a balanced product mix to enhance margins.

**Investor Insight:** The financial robustness showcases a solid trajectory, making the stock appealing for a potential ‘buy’ position. Continued international growth, alongside strategic domestic focus, aligns with long-term growth narratives, despite some challenges in the domestic market landscape.