Kirloskar Oil Engines Profit Surges 48% in Q2

Mumbai, Nov 12 (PTI) Kirloskar Oil Engines Limited on Tuesday reported a 48 per cent jump in standalone net profit to Rs 98 crore for the September 2024 quarter.

The company's net profit was Rs 66 crore in the September quarter of the previous fiscal.

The net sales for the quarter rose 13 per cent to Rs 1,184 crore from Rs 1,047 crore in the corresponding quarter of FY24, it stated.

Its EBITDA surged 35 per cent year-on-year to Rs 148 crore, it said, adding that EBITDA margins for the second quarter stood at 12 per cent against 10 per cent in the same quarter of FY24.

"This was a steady quarter for KOEL, marking the first quarter of the latest emission norm transition. We observed strong demand from the infrastructure and construction sectors. The B2B segment grew by 17 per cent year-on-year for the quarter, while the B2C segment declined by 13 per cent due to a planned plant transition," said Gauri Kirloskar, Managing Director at Kirloskar Oil Engines.

"On the margin front, we progressed as expected, achieving an EBITDA margin of 12 per cent for the quarter at a KOEL standalone level. Overall, we remain cautiously optimistic about demand, with expectations for H2 demand to pick up, especially given the low base from an election-impacted H1 market," she said.

Kirloskar also said that the company has completed the construction of its new manufacturing facility at Sanand in Gujarat and consolidated five of its manufacturing locations in Ahmedabad into a single unit.