Kirloskar Ferrous Industries Ltd — Updates, 20-05-2025: Company Update

Kirloskar Ferrous Industries has announced a board meeting on to consider the financial results for the quarter and half-year. In Q4, production increased across pig iron (14%), casting (11%), tubes (22%), and steel (15%) with volume sales up notably, especially pig iron by 13% and steel by 52% quarter-on-quarter. Despite volume growth, sales realizations declined by 4-8% in pig iron, tubes, and steel due to commodity price corrections, limiting value growth. EBITDA for Q4 improved to INR199 crores but full-year EBITDA declined to INR758 crores due to lower realizations. Cost-saving initiatives like pulverized coal injection, oxygen enrichment, captive iron ore mining, and renewable energy expansions are driving efficiency and competitiveness. The company targets around 2 lakh tons of tube sales next year, expects casting volumes to rise to 40,000 tons per quarter, and plans to grow pig iron production to about 7 lakh tons through debottlenecking. Renewable capacity additions include a 12.6 MW windmill and 35 MW solar this year, with more to come. Management is focused on improving product mix, ramping up premium segments, and tackling low-cost imports. Expansion of the steel plant at Koppal awaits approvals, with civil works expected to start soon. Overall, the company aims to restore EBITDA margins to around 15% through cost control, capacity expansion, and value-added products.