Kirloskar Oil Engines Reports Positive Financial Performance in Q1 FY25

Kirloskar Oil Engines, a midcap company in the diesel engines industry, has recently announced its financial results for the quarter ending June 2024. The company has shown positive performance with a score of 15, an improvement from 12 in the last 3 months.

One of the key factors contributing to this positive performance is the company’s operating cash flow, which has been consistently growing over the past three years. In the last quarter, the company recorded its highest operating profit (PBDIT) of Rs 323.02 crore in the last five quarters, indicating a positive trend in the near term. The operating profit margin has also improved, showcasing the company’s efficiency.

The profit before tax (PBT) less other income has also seen a significant increase, with the last quarter recording the highest PBT of Rs 192.10 crore in the last five quarters. This is a growth of 32.1% over the average PBT of the previous four quarters. Similarly, the profit after tax (PAT) has also shown a positive trend, with the last quarter recording the highest PAT of Rs 153.81 crore in the last five quarters. This is a growth of 35.8% over the average PAT of the previous four quarters.

The company’s earnings per share (EPS) have also increased, indicating higher profitability and creating value for shareholders. Additionally, the company’s cash and cash equivalents have also seen a significant increase, reaching its highest at Rs 504.75 crore in the last six half-yearly periods.

However, there are some areas that need improvement for Kirloskar Oil. The interest cost has increased by 27.20% over the previous half-yearly period, indicating higher borrowings. The debt-equity ratio has also reached its highest at 1.55 times in the last five half-yearly periods, which may put a strain on the company’s liquidity.

Another concern is the increase in non-operating income, which may not be sustainable in the long run. Overall, Kirloskar Oil Engines has shown positive financial performance in the last quarter, but there are some areas that need to be monitored closely. MarketsMOJO has given a ‘Hold’ call for the company’s stock.