Kennametal India soars after Q2 PAT surges 114% YoY to Rs 28 cr

Kennametal India jumped 8.74% to Rs 1574.90 after the company's consolidated net profit rose 114.39% to Rs 28.30 crore on 20.50% rise in net sales to Rs 237.50 crore in Q1 September 2021 over Q1 September 2020.

On a consolidated basis, profit before tax rose 110% to Rs 37.80 crore in Q1 September 2021 over Q1 September 2020.

During the quarter, total expenses rose 12.26% YoY to Rs 201.50 crore. Raw material cost jumped 34.14% YoY to Rs 66.80 crore.

Kennametal India said it reported strong results for the first quarter of FY22 (ending 30 September 2021) in a challenging environment, driven by improved performance in both the hard metals and machine tools segments.

On a consolidated basis, EBT (before exceptional items) was Rs 37.8 crore, up 99%. The performance was driven by positive momentum in the market, spurring an uptick in capacity utilization by customers. Backed by focus on innovation and value driven solutions, the company's business grew across several of its end customer segments, even though the firm experienced the impact of economic uncertainties arising mainly from rising commodity prices and supply chain constraints, including the prevailing global chip shortage issue.

Commenting on the results, Vijaykrishnan Venkatesan, managing director, Kennametal India said: "I am pleased to share that we made a commendable start to the fiscal by clocking a strong quarter. Our teams have worked relentlessly to meet all our stakeholders needs, while at the same time remaining focused on executing our core strategies, continuing our modernization initiatives, and improving Kennametal India's organization competitiveness."

Kennametal India manufactures hard metal and hard metal products. The company also manufactures mining tools, special purpose machines and accessories.

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