Kirloskar Brothers shows strong financial performance in Q2 FY25, PAT up by 89.7%
Kirloskar Brothers, a leading manufacturer of compressors and pumps in the midcap industry, has recently announced its financial results for the quarter ending September 2024. The company has shown a positive performance in this quarter, with a significant improvement in its financial score from 7 to 19 in the last three months.
One of the key highlights of the financial results is the growth in Profit After Tax (PAT), which has increased by 89.7% year on year, reaching Rs 95.63 crore. This trend is expected to continue in the near future, indicating a strong financial outlook for the company. Additionally, the company has also shown a consistent growth in its Operating Cash Flow, with the highest amount of Rs 376.08 crore in the last three years. This reflects the company’s ability to generate higher cash revenues from its business operations.
Another positive aspect of the financial results is the growth in Profit Before Tax less Other Income (PBT), which has increased by 63.11% year on year, reaching Rs 114.50 crore. This trend is also expected to continue in the near future, indicating a strong financial performance for the company.
In terms of liquidity, Kirloskar Brothers has shown improvement with its Cash and Cash Equivalents reaching the highest amount of Rs 374.60 crore in the last six half yearly periods. This indicates a strong short-term liquidity position for the company.
However, one area of concern for the company is its Dividend Payout Ratio (DPR), which is at its lowest at 13.69% in the last five years. This indicates that the company is distributing a lower proportion of its profits as dividends to its shareholders.
Overall, the financial results of Kirloskar Brothers for the quarter ending September 2024 have been positive, with strong growth in key financial indicators. This has led to a ‘Buy’ call by MarketsMOJO, indicating a positive outlook for the company. Investors can keep a close eye on the company’s performance in the coming quarters to make informed investment decisions.
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