Kirloskar Pneumatic Co. Ltd. · NSE:KIRLPNU
Kirloskar Pneumatic — JM Financial Investor Meet Sept 24 (September 2024)
61 slides from Kirloskar Pneumatic's conference presentation, September 2024
Slide 1: Kirloskar Pneumatic Company Ltd. JM Financial Investor meet Sept 24
Kirloskar Pneumatic Company Ltd. JM Financial Investor meet Sept 24 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for use at the investor/analyst presentation. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: Statements in this presentation, particularly those
Slide 3: Kirloskar Pneumatic Company Limited
Kirloskar Pneumatic Company Limited A Kirloskar Group Company
Slide 4: Kirloskar Pneumatic Company Ltd
Kirloskar Pneumatic Company Ltd: Three core business lines: Ø Air Compressors Ø Refrigeration Compressors & compression systems. Ø Gas compressors & compression systems. Ø Others Ø 60 plus years in business. Ø Debt free; strong dividend track record. Ø 3 plants in Maharashtra; workforce of over 1500
Slide 5: Industries Served
Industries Served Power Generation Automotive Wind, Thermal, Pharmaceuticals Engineering Nuclear, Hydro, Solar & Chemicals Marine Oil & Gas Food & Beverage General Processing Steel & Engineering Dairy, Meat, Fisheries, Fruits Aluminium Sugar, Textile, & Vegetables, Breweries Cement, Paper 5
Slide 6: Air compressors
Air compressors Reliable, Efficient & Capable Diesel Portable Electric Screw Waterwell Reciprocating Reciprocating Centrifugal Compressors Compressors Compressors Air Compressor Gas Compressor Compressor Capacity 155- 600 31- 1047 530- 1250 35- 6200 1200-8100 (CFM) Pressure 7- 12.5 7.5-13 10.4 - 25
Slide 7: A k*rloska
A k*rloska = Pneumat | Tezcatiipoca K7rioSsKar | Pneumatic ic =
Slide 8: Products
Products - A-2100 A-3500 A-7000 New Launch -800 → Flow CFM Compressor Frame Minimum Maximum Upcoming A-800* 600 1200 A-2100 1200 2400 A-3500 2500 4400 A-5000 4400 5600 A-7000 5600 8100 Future A-12000** 8100 16000 Pressure Range: For 3 Stage – 4.5 Bar G to 10.4 Bar G For 2 Stage – 2.5 Bar G to 4.5 Ba
Slide 9: Product USP's
Product USP’s - Ø Features § Custom designed Aero components for efficient operation Best in class efficiency § Optimized volute design for effective pressure recovery § IGV – 9 % more efficient at part load § Stainless steel coolers with low pressure drop Reliability § Gearing as per AGMA 6011 –Q 1
Slide 10: Two-stage, A-800, Centrifugal Air Compressor
Two-stage, A-800, Centrifugal Air Compressor Specification: Flow: 800 cfm Pressure: 7- 8.5 bar (g) Motor rating: 132 kW Speed: 78,000 rpm Status: 2230mm Manufacturing is in progress. Procurement is in progress. Pinion and Bull gear blue matching is done Rotor manufacturing is in progress Application
Slide 11: 5 standard air compressor models
5 standard air compressor models ARiA 11 Flow capacity: 60 CFM at 7 bar(g) ; Weight = 325 kg ARiA 22 Flow capacity: 126 CFM at 7 bar(g) Weight = 460 kg ARiA 18.5 ARiA 7.5 ARiA 37 Flow capacity: 110 CFM at 7 Flow capacity: 42 CFM at 7 bar(g) Flow capacity: 234 CFM at 7 bar(g) L x W x H = 1396 x 666 x
Slide 12: Product differentiators
Product differentiators Easy access for Smart controls Canopy – service & maintenance Lightweight yet high- strength ● Lightweight yet sturdy ● Design is common across range ● Smart control unit ● Rigid & durable ● Removable side & top side panel ● RS 485 modbus & more
Slide 13: Accelerating Growth: Intellectual Properties & Publications
Accelerating Growth Intellectual Properties & Publications ● IPs (overall): Grant: 25, Applied & under Review: 22 & Under process of application: 23 ● Publications: 35 Journal & Conference Publications ● Two consecutive Best Paper Awards at International Conference on Compressors and their Systems,
Slide 14: Intellectual Properties Process of Filing
Intellectual Properties Process of Filing Design Registration Patent Trademark
Slide 15: Digitization, Data and Artificial Intelligence
100% Digital, Engg Digital tools, Accuracy-Consistency-data security with speed Digitization, Data and Artificial Intelligence AI Based Performance PGS-KGC 32 Recip- ACD- ECAL, RPAT for RECIP Prediction & Optimisation Tool Sizing Tool SCOTS FY’25 12
Slide 16: Air Conditioning & Refrigeration
Air Conditioning & Refrigeration Cooling our way into the future Refrigeration Equipment Refrigeration Projects Vapour Absorption Spares & Service & Refrigeration Systems & Marine HVACR Chillers Reciprocating refrigeration compressors & packages 16
Slide 17: Refrigeration compressor / Compression system
Refrigeration compressor / Compression system: Here we offer Refrigeration packages for various processes in Process refrigeration Oil & Gas sector, fertiliser, petrochemicals. We currently use Howden Screw compressors for this We are a leading manufacturer of Air cooled, Ammonia refrigerant Commerc
Slide 18: Screw Compressor Package: > Rs 500 cr business opportunity
Screw Compressor Screw Compressor Package > Rs 500 cr business opportunity 20
Slide 19: Refrigeration & Air conditioning
Refrigeration & Air conditioning: The global market for R&Ac compressors is about US$ 34 bil. Trend driving growth : Urbanisation. Lead indicator: GDP + Nature of business: ‘Global’ – can make at any place and sell across the world. Technological changes / obsolescence: Medium – in refrigerants, ene
Slide 20: Process Gas Systems
Process Gas Systems Customized, Pressurized & Fluid Solutions Upstream Midstream Downstream Distribution Exploration Transportation / Storage Gas Processing CNG Packages, CNG Hydraulic (Onshore & Offshore) Booster & Compressed Biogas* Screw Compressor Packages Reciprocating / Reciprocating Compresso
Slide 21: Gas compression systems
Gas compression systems: This is based on our own reciprocating compressor. Used to fill Natural Gas into vehicles from CNG pipelines. CNG gas package We sell, install and handle the O & M of these. These are packages used in Upstream, mid stream and down stream of the O & G ecosystems. We make pack
Slide 22: CNG Outlook
CNG OUTLOOK Government Corrective Measures – CGD Market Slowdown – Last 2 Years Kirit Parikh committee Report • Fixed band of Pricing for Legacy Fields • Market which was expected to Grow at a CAGR of 7.66% during the forecast period (2024-2029), slowed down in last o $4 (floor price) to $6.5 (ceili
Slide 23: Natural gas consumption
Natural gas consumption ™ Power WMFertilizer ™CGD* (million standard cubic metres per day) 50 40 30 20 10 FY18 ~—s FY19 FY20 FY21 FY22 = FY23 FY24 “CGD: City Gas Distribution | Source: ICRA k*rloskar Pneumatic
Slide 24: CNG Outlook (cont.)
CNG – OUTLOOK (cont…) CGD Minimum Work Programme •Total GA’s Covered after 12th Round – 307, except Financial Year No of stations 12th Bidding Round for Mizoram, Lakshadweep & Andaman & Nicobar FY'24 2347 FY'25 2347 CGD coverage after •More than 98% population covered FY'26 2176 12th round FY'27 165
Slide 25: Compressed Biogas
CNG Hydraulic Booster compressor: Best in class COMPRESSED BIOGAS offering. •5000 CBG Plants expected in 3 years under SATAT scheme to produce 15MMT CBG •Oil & Gas Companies are entering into MoU with State Government for facilitating CBG Plants 25 We are the only company that can offer both LP and
Slide 26: Range of Biogas compressors
Range of Biogas compressors 2
Slide 27: Compressed Biogas – Action
COMPRESSED BIOGAS – ACTION KPC Product Line “Market ready” for 5 / 10 TPD CBG Plants Membrane / Water Scrubber Purification Technology – LP Compressor Compressor Type Reciprocating Compressor / Screw Capacity 250 nm3/hr to 2100 nm3/hr Suction Pressure 80 mbar G to 1 bar G Discharge Pressure 8 bar G
Slide 28: Diaphragm Compressor
DIAPHRAGM COMPRESSOR PRODUCT FAMILY * 4 compressor crankcase options with associated heads _— + All compressor options are capable of suction pressures from atmospheric to 1,000 barg. * Greater flow capacity with crank size, rod load, and head diameter Example; H2 gas, 30 bar in, 500 bar out © PDC-1
Slide 29: India's current hydrogen consumption stands at an estimated 6 mmtpa
India's current hydrogen consumption stands at an estimated 6 mmtpa, 29
Slide 30: Manufacturing Capabilities
Manufacturing Capabilities NABL Accredited Metallurgy & Machine Assembly Metrology Lab Shop Shop Foundry Heat Paint Treatment Booth Testing Facility Fabrication Shop Packaging Facility Tool Room Pattern Shop Energy Management System >98 % <24 Hrs <0.08% Lowest cost of Foundry Capability deliver 8 to
Slide 31: Manufacturing Capabilities: Smart Factory
Manufacturing Capabilities Smart Factory IIoT Enabled Manufacturing Digitalised Audit Management to (OEE > 90% , PPM improve overall <500, FTA > 98%) efficiency Adapted to cloud hosting Digitalised & the new-age PLM Activity Tracker (Product Life Cycle and Reports to get Management) framework real t
Slide 32: Nashik Manufacturing Division
Nashik Manufacturing Division Forging Fabrication Forging Weights from 100 kgs to 500 kgs Machine & Equipment Pre-Forging 9000sq.m. facility with Inhouse normalizing Hydraulic press adequate handling & Annealing Furnace 1500 T equipment. Shot blasting & Machining In-house 700 10K 30% Tons for captiv
Slide 33: Value chain advantages
Value chain advantages: At KPCL we have the following capabilities in house giving us value chain advantage: Ø Foundry – for CI, SG Iron and Aluminum alloys. Ø 32 Ton Counterblow hammer – one of its kind forging capacity to make Gear blanks, Rotors, etc. Ø Comprehensive fabrication facility – for ba
Slide 34: Financial Highlights
k*rloskar Pneumati ic Financial Highlights
Slide 35: Total Income
Total Income Rs. in Cr. CAGR 12.50% 1,342 1,250 1,033 840 833 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 35
Slide 36: EBITDA
EBITDA Rs. in Cr. CAGR 20.30% 222 177 152 123 106 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 36
Slide 37: PBT & PAT
PBT &PAT CAGR 25.40% CAGR 25.30% Rs. in Cr. Rs. in Cr 133 178 109 143 85 114 64 84 72 54 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 37
Slide 38: Segment Results
Segment Results Rs. in Cr. 244 209 180 130 140 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 94% 95% 94% 93% 93% 16.9% 17.8% 18.7% 18.1% 19.8% % of Compression business in total Compression segment profitability 38
Slide 39: EPS
EPS Rs. / per share 20.6 16.8 13.2 9.9 8.3 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 39
Slide 40: Dividend
Dividend Dividend Payout Dividend % Dividend Per share Rs. 35% 32% 33% 30% 32% 6.5 5.5 4 3.5 325% 2.7 275% 175% 200% 135% Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 40
Slide 41: Net Fixed Assets
Net Fixed Assets Rs. in Cr. 267 Capex Additions 240 247 Year Rs. In Cr 216 Mar 20 63 183 Mar 21 5 Mar 22 93 Mar 23 40 Mar 24 55 Total 255 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 41
Slide 42: Net working capital
Net working capital Rs. in Cr. 278 267 184 174 113 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 NWC % to Net Sales 13.4% 20.9% 17.8% 22.2% 19.9% 42
Slide 43: Return on capital employed (ROCE)
Return on capital employed ( ROCE ) 32.5% 29.2% 25.3% 19.2% 16.3% Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 43
Slide 44: Cash and Cash equivalent
Cash and Cash equivalent Rs. in Cr. Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Current Investments 106 161 127 104 186 Cash & Bank Balance 27 50 36 90 53 Total 133 216 162 194 239 Less: Borrowings 28 40 - - - Net Cash & Cash Equivalent 105 176 162 194 239 There are no loans, neither term loans nor short ter
Slide 45: Q1 FY25 Financial Results
Q1 FY 25 Financial Results
Slide 46: Order Board
Order Board Rs. Cr. 1,618 1,347 20% As on 01.07.23 As on 01.07.24
Slide 47: Total Income
Total Income 280 274 13% 248 172 Q1 FY 22 Q1 FY 23 Q1 FY 24 Q1 FY 25 Rs. Cr.
Slide 48: EBITDA & Margin
EBITDA & Margin 43.7 36% 32.2 29.9 19.8 Q1 FY 22 Q1 FY 23 Q1 FY 24 Q1 FY 25 Rs. Cr. 11.5% 10.9% 13% 15.6%
Slide 49: PBT & Margin
PBT & Margin 35.9 53% 23.5 21.7 9.8 Q1 FY 22 Q1 FY 23 Q1 FY 24 Q1 FY 25 Rs. Cr. 5.7% 7.9% 9.5% 12.8%
Slide 50: PAT & Margin
PAT & Margin 26.9 50% 17.9 16.3 7.1 Q1 FY 22 Q1 FY 23 Q1 FY 24 Q1 FY 25 Rs. Cr. 4.1% 5.9% 7.2% 9.6%
Slide 51: Segment Performance
SEGMENT PERFORMANCE SEGMENT REVENUE SEGMENT PBIT & % 48.3 38.2 36.3 24.6 Q1 FY 22 Q1 FY 23 Q1 FY 24 Q1 FY 25 Q1 FY 22 Q1 FY 23 Q1 FY 24 Q1 FY 25 Rs. Cr. Rs. Cr. Compression 162 255 220 253 Margins % Other 10 18 22 22 15.2% 15% 16.5% 19.1% Key Comments Compression Segment contributes about 92% of tot
Slide 52: Stop Press! Acquiring a majority stake
STOP PRESS ! Acquiring a majority stake in: * A reputed player in the Refrigeration space for over 30 years . • Over 700 installations in Pharma, Chemical and Food industry across India. • Manufacturing facility at Murbad, Maharashtra.
Slide 53: IMS Certifications
Awards, Recognitions & Certifications: IMS : Integration of ISO 9001:2015, ISO 14001:2015 & ISO 45001:2018 ISO 9001:2015 ISO 14001:2015 ISO 45001:2018 IMS IMS CERTIFICATIONS
Slide 54: NABL Certification
NABL Certification Accreditation of Metallurgy Laboratory in accordance with the standard "ISO / IEC 17025:2017 - General requirements for the Competence of testing & calibration Laboratories" in the field of "Calibration" for our Calibration facilities at Hadapsar Plant from National Accreditation
Slide 55: Kincentric Best Employer 2023 Award
Kincentric Best Employer 2023 Award
Slide 56: Prize for Leadership in HR Excellence
2019 "Prize for Leadership in HR Excellence” for scoring 600+ consecutively fourth time. 2020 13th CII HR Excellence Assessment-2022 2021 2022 56
Slide 57: Environmentally Conscientious: ESG Approach
Environmentally Conscientious: ESG Approach 1 Solar (Renewable) Energy Focus 2 Responsible Products: Natural Resource Conservation (R & D Focus) Type FY’ 16 FY’ 17 FY’ 18 FY’ 19 FY’ 20 FY’ 21 FY’ 22 FY’ 23 KC(Water Cooled) 54 % 25 % 13 % 10 % 9% 3% 7% 10% KCX( Air Cooled) 46 % 75 % 87 % 90 % 91 % 97
Slide 58: ESG Rating by LSEG
ESG Rating by LSEG: KPCL’s Score* (upgraded from 44 to 57 post 1 BRSR) st https://www.lseg.com/en/data-analytics/sustainable-finance/esg- scores?esg=Kirloskar+Pneumatic+Company+Ltd Peer Ratings: Thermax: 63 Tata Motors: 86 L & T: 76 * As on 22/02/2024 50
Slide 59: Socially Engaged: Focus Areas
Socially Engaged: Focus Areas 25,000 + beneficiaries in FY’ 23 1 Education: Youth Skilling and Girls Education 2 Environment: Kirloskar Vasundhara Initiative 3,600 38 students students from 12 batch schools (40% girls) started 230 girls Collaboration with NTTF for Ramnadi Restoration Mission: educat
Slide 60: Values – the basis of our existence and growth
Values – the basis of our existence and growth: 60
Slide 61: www.kirloskarpneumatic.com
www.kirloskarpneumatic.com 61
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