Kirloskar Brothers Ltd. · NSE:KIRLOSBROS
Kirloskar Brothers — Q4 FY24 Earnings Presentation
65 slides from Kirloskar Brothers's earnings presentation, May 17, 2024
Slide 1: Cover letter to stock exchanges - Investor Presentation
SEC/ F:24 May 17, 2024 BSE Limited National Stock Exchange of India Ltd. Corporate Relationship Department, 5th Floor, Exchange Plaza, 2nd Floor, New Trading Ring, Bandra (East), Phiroze Jeejeebhoy Towers, Mumbai – 400 051. Dalal Street, Mumbai-400 001. (BSE Scrip Code – 500241) (NSE Symbol - KIRLOS
Slide 2: Investor Presentation Q4 & FY24
KIRLOSKAR BROTHERS LIMITED Established 1888 A Kirloskar Group Company INVESTOR PRESENTATION Q4 & FY24 (For South-East Asia)
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Kirloskar Brothers Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 4: We are already here!
We are already here! Marina Bay Sands Reflections at Keppel Bay Singapore Parliament House Hong Kong–Zhuhai–Macau Bridge Changi Water Reclamation Plant Helios Terminal 3
Slide 5: Financial Highlights
Financial Highlights 4
Slide 6: Q4FY24 Consolidated Highlights
Consolidated Highlights Revenue EBITDA PAT Rs. 1,224 crores Rs. 228 crores Rs. 153 crores Q4FY24 +9% +44% +52% Margin at 19% Margin at 13% Rs. 4,001 crores Rs. 578 crores Rs. 350 crores FY24 +7% +36% +48% Margin at 15% Margin at 9% 5
Slide 7: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In Rs. Cr.) Q4FY24 Q4FY23 YoY FY24 FY23 YoY Net Revenue from Operations 1,223.8 1,124.6 9% 4,001.2 3,730.2 7% Other Income 36.3 13.1 58.6 27.3 COGS 593.7 607.8 1983.0 1,954.7 Gross Profit 666.4 529.9 26% 2076.8 1,802.8 15% Gross Margin (%) 54.5% 47.1
Slide 8: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars (Rs. Crores) 31st March 24 31st March 23 Particulars (Rs. Crores) 31st March 24 31st March 23 Non Current assets Equity Property, Plant and Equipment 578.7 481.4 Equity Share capital 15.9 15.9 Capital work in progress 32.0 81.3 Intangible assets 4.1 4
Slide 9: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. Crores) 31st March 24 31st March 23 Profit Before Taxes 480.6 318.1 Changes in working capital 27.0 81.3 Cash generated from operations 507.6 399.4 Direct taxes paid (net of refund) 126.4 67.4 Net Cash from Operating Activities 381.2 332.0 Net Cash f
Slide 10: Q4 & FY24 Key Subsidiaries Financials Performance
Q4 & FY24 Key Subsidiaries Financials Performance KBL KCPL TKSL KPML KBIBV Elimination Total Companies (Rs.in Crs.) Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Revenue 899.7 794.0 11.0 9.0 10.1 13.7 157.5 123.4 321.9 335.3 -176.4 -1
Slide 11: Q4 & FY24 KBIBV Group Financials
Q4 & FY24 KBIBV Group Financials KBTL (Thailand+ SPP UK SPP Inc (USA) Dutch Group SPP Mena SA Group KBIBV Standalone Elimination KBIBV Group Singapore)* Companies (Rs.in Crs.) Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 F
Slide 12: Domestic & Overseas Orderbook Position
Domestic & Overseas Orderbook Position Robust Orderbook Implying Strong Revenue Visibility Orderbook and Pending Order Position (In Rs. crores) Standalone Pending Order book (In Rs. crores) Domestic Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Sector^ Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Orders receiv
Slide 13: About Us
About Us 12
Slide 14: Company at Glance
Company at Glance One of the 1st AtmaNirbhar organization. India’s 1St Manufacturing Strategically located across various trading Inherent & largest pump manufacturer. Made some of blocks – Expanding geographic presence with Strength Built Presence Since Facilities India’s 1st engineering products i
Slide 15: Legacy of 135+ Years
Legacy of 135+ Years IDEATE INNOVATE IMPLEMENT 1888-1920 2010-2020 2021 Onwards 1941-1958 1988-2009 Strategic & Technology Establishment Phase Restructuring Phase Acquisition Phase Monetise Expansion • 1888 : Establishment • 1941 : Divested machine • 1988 : Established Kirloskar • 2010 : Acquired •
Slide 16: Our Business & Product Line
Our Business & Product Line Our Business Our Product Line Large & Medium Small pumps for day-to- Flow up to Pumps ranging Pump Head up to pumping solutions for 75+ Types of 28+ Types of day use at households 120,000 m³/hr. from 0.3 KW to 3,200 m (4,539 complex fluid Pumps Valves and farms (529,000 U
Slide 17: Building & Construction
Building & Construction • One of the fastest-growing business sectors in India and the leading supplier of firefighting pumping solutions in the Indian market. • Catering to segments like, Residential and Commercial buildings, Malls, Hotels, Hospitals, Airports, Metro Rails, Tunnels, Warehouses, Dat
Slide 18: Building & Construction
Building & Construction All logos are the property of the respective owners 17
Slide 19: Industry
Industry • Market approach - B2B and Channel network across India. • Pump Quality, reliability and life cycle cost are key considerations of customer. • Catering to various process industries such as Chemical and Pharma, Circulating Water, Uttam Tata Steel, India Bhilai Steel, India Sugar, Steel, Ce
Slide 20: Industry
Industry All logos are the property of the respective owners 19
Slide 21: Water Resource Management
Water Resource Management • Design, supply, test, erect and commission projects for raw water intake, water treatment, desalination, Sewage Pumping Stations (SPS) and Sewage Treatment Plants (STP) based on advanced technologies. • Today, over 1,00,000 Kirloskar pumps are successfully operational acr
Slide 22: Irrigation
Irrigation • KBL’s expertise in executing irrigation projects, including some of the world’s largest irrigation projects, is attributed to our capacity to manufacture large-size pumps and manage end-to-end projects. Sardar Sarovar, India Senegal Laos • Today, KBL’s pumping solutions are part of over
Slide 23: Valves
Valves • Specialises in the manufacture of valves in all sizes, ranging from 25 mm to customised large-size valves extending up to 5000 mm. • Valves comply with domestic as well as international design standards MCGM, India such as IS/ BSEN/ AWWA specifications. Sohar, Oman Sharjah, UAE • Over the l
Slide 24: Water, Irrigation and Valves
Water, Irrigation and Valves All logos are the property of the respective owners 23
Slide 25: Power
Power • For decades, KBL’s pumping solutions have been the preferred choice for various Thermal, Hydro and Nuclear power plant projects across the globe. Bhavini Fast Breeder • KBL provides turnkey solutions including design, manufacturing, supply, ITER, France CGPL Mundra, India Reactor, India erec
Slide 26: Power
Power All logos are the property of the respective owners 25
Slide 27: Small Pumps Business
Small Pumps Business • Catering to Residential, Agricultural, Industrial and Dewatering applications. Our wide range of agricultural and domestic pumps cater to the daily needs of millions of people across the globe by irrigating their • Manufacturer of Pumps ranging from 0.3KW to 45 KW. farmlands a
Slide 28: Marine and Defence
Marine and Defence • Operated in Defence and Non-Defence segments with products offering for both On-shore and Off-shore applications. • Major customers are Ports, Shipyards, Indian defence institutions and Mazagon Dockyard Ordnance factories. Pipavav Shipyard, India GRSE, India Limited, India • Apa
Slide 29: Oil & Gas
Oil & Gas • KBL along with its subsidiaries, SPP Pumps, KEPL and Rodelta is a world leader in the design and manufacture of API & non-API pumps and steam turbines for the oil & gas industry. • Today, KBL pumps are operating in over 1000 oil and gas installations Exxon Mobil, USA IOCL, Panipat, India
Slide 30: Oil & Gas
Oil & Gas All logos are the property of the respective owners 29
Slide 31: After-Market Support
After-Market Support • The Customer Service & Spares division manages spares and services for standard pumps and is supported by more than 80 authorised dealers across India. • Meanwhile, the Engineering Service Division handles spares and services for large engineered pumps, with a network of over
Slide 32: State-Of-The-Art Manufacturing Facilities
State-Of-The-Art Manufacturing Facilities KIRLOSKARVADI, Est. in 1910 DEWAS, Est. in 1962 KANIYUR, Est in 2011 Dedicated for domestic pumps. World’s 1st & only 2nd largest plant with well-equipped facility for KBL’s 1st plant, with facilities starting from foundry to pump plant to deploy 100% women
Slide 33: Our Innovative Solutions
Our Innovative Solutions Solar Pumping System Pump Selection Package KirloSmart Fire IoT based remote monitoring solution Lowest Life-Cycle Cost (LLC) Pump Pumps for Nuclear Power Plant Application KirloSmart Augmented Reality Mobile Training PICO Additive Manufacturing 3D Printer 32
Slide 34: Global presence map
~ ‘The above map is nt to sale an for istative purposes ony & Corporate Office and Global Headquarters 9 ‘Overseas Presence oO Manufacturing Plants y Domestic Subsidiaries and Associate companies 4. Pune, india 2. Atlanta, US 9. Kitloskarvadi, India 14, Karad Projects and Motors Limited, Karad 8. Co
Slide 35: Highly Qualified Management Team
Highly Qualified Management Team Mr. Sanjay Kirloskar Mr. Alok Kirloskar Ms. Rama Kirloskar Mr. Chittaranjan Mate Mr. Ravish Mittal Chairman & Managing Director – KBL Joint Managing Director- KBL Chief Financial Officer^ Senior Vice President (Finance) Director Managing Director – KBI B.V. Managing
Slide 36: Board of Directors
Board of Directors Mr. M. S. Unnikrishnan Mr. Shrinivas V. Dempo Mr. Shobinder Duggal Ms. Ramni Nirula Independent Director Independent Director Independent Director Independent Director • Former MD & CEO of Thermax Group • M.Sc. in Industrial Administration & Finance • Bachelor’s in Economics (Hons
Slide 37: Our Joint Ventures & Subsidiaries
Our Joint Ventures & Subsidiaries 36
Slide 38: Group Structure
Group Structure Kirloskar Brothers Ltd. (India) The Kolhapur Steel Ltd. Karad Projects and Kirloskar Corrocoat Kirloskar Ebara Pumps Kirloskar Brothers International (100%) Motors Ltd. (100%) Pvt. Ltd.* (65%) Ltd. (45%) B.V. (The Netherlands) (100%) SPP Pumps Kirloskar Pompen Rodelta Pumps Kirloskar
Slide 39: Leveraging the localised global presence
Leveraging the localised global presence KBL is leveraging the localised global presence through cost-synergies, duty-free access and local sourcing norms • Reduction in turnaround time • Lower freight costs • Subsidiaries do local value addition in terms of Cost components, repair, maintenance and
Slide 40: Kirloskar Brothers International B.V., The Netherlands
Kirloskar Brothers International B.V.*, The Netherlands • Wholly owned subsidiary of Kirloskar Brothers Limited Genesis • SPV established as an Investment Company for all international businesses Particulars FY20 FY21 FY22 FY23 FY24 • Fire fighting pumps & Products • Bi-directional Axial Flow pumps
Slide 41: SPP Pumps Limited
SPP Pumps Limited • 145+ years of heritage Particulars FY20 FY21 FY22 FY23 FY24 • R&D, manufacturing and test facilities in the UK Genesis Revenue (£ Mn.) 95.6 75.5 73.4 94.5 102.3 • Highest market share in fire pump packages business • Current Orderbook: £ 87 million for SPP Group EBITDA (£ Mn.) 3.
Slide 42: Rodelta Pumps International B.V., The Netherlands
Rodelta Pumps International B.V., The Netherlands • Established by Sulzer in 1946, acquired by KBL in June 2015 is a leading Particulars FY20 FY21 FY22 FY23 FY24 manufacturer of API and Non-API pumps Genesis Revenue (€ Mn.) 7.8 8.6 3.9 6.9 6.6 • R&D, manufacturing and test facilities in Almelo, Neth
Slide 43: Kirloskar Brothers (Thailand) Limited, Thailand
Kirloskar Brothers (Thailand) Limited, Thailand • Assembly and packaging for sales of centrifugal pumpsets in South-East Asia Particulars FY20 FY21 FY22 FY23 FY24 • Provides duty-free access to fast-growing ASEAN region through value addition Genesis Revenue (THB in Mn.) 381.1 344.1 372.7 586.8 386.
Slide 44: Braybar Pumps Limited, South Africa
Braybar Pumps Limited, South Africa • Manufacturing and sales of high head multi-stage pumps, rubber lined slurry pumps and white metal lined bearings Particulars FY20 FY21 FY22 FY23 FY24 Genesis • Successfully overcome BBBEE regulations and turned around the business by Revenue (ZAR Mn.) 72.1 71.5
Slide 45: Karad Projects And Motors Limited (KPML)
Karad Projects And Motors Limited (KPML) • KPML is a wholly owned subsidiary of KBL. • 3 manufacturing plants located at Karad, Maharashtra, India. Particulars FY20 FY21 FY22 FY23 FY24 Genesis • Expertise in manufacturing Electrical Stampings, Stators, Rotors, Shaft, Rotor Revenue (Rs. Crores) 321.9
Slide 46: Kirloskar Ebara Pumps Limited
Kirloskar Ebara Pumps Limited • JV in 1988 between KBL and Ebara Corporation to manufacture and supply Particulars FY20 FY21 FY22 FY23 FY24 rotary equipment like process pumps, boiler feed water pumps, steam turbines Genesis for mechanical drive and steam turbine generators, etc. required for critic
Slide 47: Kirloskar Ebara Pumps Limited
Kirloskar Ebara Pumps Limited Boiler feed Pumps to MIRFA 2350 kW API Drive Turbine Isomerization Reactor Feed BPCL, Mumbai Saudi Aramco Base Oil Company International Power & Water supplied to Aeroto Boldrocchi Pumps for HPCL, Mumbai (Luberef)- Saudi Arabia Company, Abu Dhabi 380 kW API Drive Turbin
Slide 48: Kirloskar Ebara Pumps Limited
Kirloskar Ebara Pumps Limited All logos are the property of the respective owners 47
Slide 49: The Kolhapur Steel Limited (TKSL)
The Kolhapur Steel Limited (TKSL) • Established in the year 1965. Particulars FY20 FY21 FY22 FY23 FY24 • Steel castings in the weight range of 300 kg-10 tonne single piece casting Genesis Revenue (Rs. Crores) 30.9 20.9 31.4 45.6 53.4 • State-of-the-art facility with IBR and NORSOK certifications • I
Slide 50: Kirloskar Corrocoat Private Limited
Kirloskar Corrocoat Private Limited • JV between KBL and Corrocoat Ltd. U.K. Company manufactures glass flake Particulars FY20 FY21 FY22 FY23 FY24 polymer coatings at its state-of-the-art plant at Kirloskarvadi , Maharashtra. Genesis • Undertakes turnkey projects for supply and application of energy
Slide 51: Strategic Focus
Strategic Focus 50
Slide 52: A Unique Value Proposition
A Unique Value Proposition Global Presence – Leveraging Brand Value & Domain Expertise • KBL is a global company with local presence across all major End to end offering – One Stop Solution trading blocks. • From Conceptualization to Manufacturing to Implementation • Manufacturing locations spread a
Slide 53: Staying Ahead of the Curve through Digital Initiatives
Staying Ahead of the Curve through Digital Initiatives Leading towards Digital Transformation In Pumps Industry • Over a decade, KBL has strategically invested in various strategic digital initiatives like: 3D Printing AI-ML • Virtual Reality (VR) • Augmented Reality (AR) • Artificial Intelligence (
Slide 54: Subscription Platform - Creating Market Opportunity
Subscription Platform - Creating Market Opportunity Subscription platform is aimed towards leveraging the technological and domain expertise to create a scalable and sustainable business Market Opportunities • Scalable & Universal: o The proprietary algorithm keeps on improving Traditional Solution
Slide 55: Way Ahead....
Way Ahead…. KBL has strategically reduced EPC business exposure and increased contribution from Services & Value-Added Products • Reduced exposure in low margin, lumpy and WC Increased focus on Services and Reduced EPC Business exposure intensive EPC orders since 2008. Value-Added Products • Share o
Slide 56: Historical Performance
Historical Performance 55
Slide 57: Historical Financial Performance - Consolidated
Historical Financial Performance - Consolidated Revenue (Rs. Crores) EBITDA (Rs. Crores) PAT (Rs. Crores) 4,001.2 578.2 349.7 3,730.2 3,135.4 3,057.6 426.3 2,716.5 235.8 294.3 244.6 160.7 238.5 94.3 71.9 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 EBITDA Margin (%) PAT
Slide 58: Historical Financial Performance - Consolidated
Historical Financial Performance - Consolidated EPS (in Rs.) Net Worth (Rs. Crores) Leverage (X) 43.8 1,724.1 0.6 1,407.4 29.6 1,107.2 1,180.2 946.0 0.3 20.3 0.3 0.2 11.9 9.1 0.1 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 RoCE (%) RoE(%) 26.4% 20.3% 21.3% 16.8% 18.0%
Slide 59: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crores) FY24 FY23 FY22 FY21 FY20 Net Revenue from Operations (Net of Excise) 4,001.2 3,730.2 3,057.6 2,716.5 3,135.4 Other Income 58.6 27.3 32.4 53.8 37.6 Materials Consumed 1,983.0 1,954.7 1,680.3 1,449.5 1,641.9 Gross Profit 2,076.8 1,802.8 1,4
Slide 60: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars (Rs. Crores) FY24 FY23 FY22 FY21 FY20 Particulars (Rs. Crores) FY24 FY23 FY22 FY21 FY20 Non Current assets Equity Property, Plant and Equipment 578.7 481.4 487.0 428.4 429.4 Equity Share capital 15.9 15.9 15.9 15.9 15.9 Capital work in progress 32.0 8
Slide 61: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. Crores) FY24 FY23 FY22 FY21 FY20 Profit Before Taxes 480.6 318.1 135.5 182.1 121.3 Changes in working capital 27.0 81.3 18.8 170.1 219.9 Cash generated from operations 507.6 399.4 154.3 352.2 341.2 Direct taxes paid (net of refund) 126.4 67.4 41.4 35
Slide 62: Awards & Accolades
Awards & Accolades Dewas – Greenco Gold certified Kaniyur and Sanand - Greenco Bronze certified KBL’s Dewas plant won the prestigious Total Productive Maintenance (TPM) award by Japan Institute of Plant Maintenance (JIPM) Appreciation by His Royal Highness the King of Thailand for KBL’s presence on-
Slide 63: ESG Initiatives
ESG Initiatives Environmental Social Governance • Solar & wind power contribute 20%-30% of total power • Vikas Charitable Trust established in 1994 • Sustainability reporting since 2009-10 and integrated consumption • CSR activities revolves around Education, Employment, reporting since 2018-19 • Ta
Slide 64: Shaping Tomorrow: A Commitment to Corporate Social Responsibility
Shaping Tomorrow: A Commitment to Corporate Social Responsibility All-women operated manufacturing facility in Kaniyur & 35% women workforce in Sanand factory is testimony towards gender equality and women empowerment KBL conducts an array of activities and campaigns throughout the year. The company
Slide 65: THANK YOU
THANK YOU For further information, please contact Company Investor Relations Advisor CIN: U74140MH2010PTC204285 CIN: L29113PN1920PLC000670 Ms. Ami Parekh / Mr. Jigar Kavaiya Mr. Chittaranjan Mate E: ami.parekh@sgapl.net / jigar.kavaiya@sgapl.net Email: Chittaranjan.Mate@kbl.co.in T: +91 8082466052 /