Kirloskar Ferrous stock hits lower circuit after Q4 net plunges 81%

Kirloskar Ferrous Industries stock update: The counter saw trades of around 2.07 lakh shares as against the 2-week average volume of around 83,000 shares on the BSE.

Kirloskar Ferrous Industries stock hit the 5 per cent lower circuit at Rs 689 on the back of 2-fold jump in trading volumes on the BSE on the back of disappointing Q4 results.

At 09:50 AM, Kirloskar Ferrous Industries stock was trading at Rs 700 - down 3.5 per cent. The counter saw trades of around 2.07 lakh shares as against the 2-week average volume of around 83,000 shares on the BSE.

According to a release issued by the company to the BSE, the company's Q4 consolidated net profit plunged 81 per cent to Rs 17.70 crore for the quarter ended March 2024 when compared with Rs 94.60 crore in the quarter ended March 2023.

Consolidated operating revenue too dipped 2 per cent year-on-year (YoY) to Rs 1,535.90 crore in Q4FY24 as against Rs 1,565.60 crore in Q4FY23, the release stated. EBITDA, excluding other income and exceptional item, decreased by 25 per cent YoY to Rs 165.10 crore from Rs 221 crore. 

On a standalone basis, company's net profit reduced by 58 per cent YoY to Rs 34.10 crore. Operating revenue stood at Rs 994.40 crore, a tad higher compared to Rs 991 crore from the year ago period.

Commenting on the results, R V Gumaste, Managing Director of Kirloskar Ferrous said, March quarter was challenging due to demand-side issues. The subdued demand from

the tractor industry impacted casting sales volumes, and pressure on pig iron margins affected the results.

However, we are seeing early signs of revival, both in pig iron prices and tractor casting demand. All of our projects are progressing as planned, with many nearing completion. We expect to start seeing returns from these projects soon, Gumaste added.

Further the company's board on Friday, approved a proposal to raise up to Rs 750 crore by way of issuance of non-convertible debentures in one or more tranches.

Kirloskar Ferrous is one of India's largest castings and pig iron manufacturers. The company caters to various industry sectors, such as tractors, automobiles and

diesel engines.

The company's range of products includes grey iron castings up to 300 kg pieces. The company also produces various grades of pig iron such as SG iron grade, basic steel grade and foundry grade.