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Kirloskar Pneumatic Company Ltd.

BSE: 505283 Sector: Engineering
NSE: KGKHOSLA ISIN Code: INE811A01020
BSE 11:54 | 26 Sep 522.75 -22.75
(-4.17%)
OPEN

540.05

HIGH

540.05

LOW

510.10

NSE 05:30 | 01 Jan Kirloskar Pneumatic Company Ltd
OPEN 540.05
PREVIOUS CLOSE 545.50
VOLUME 26062
52-Week high 614.50
52-Week low 335.00
P/E 35.85
Mkt Cap.(Rs cr) 3,374
Buy Price 522.80
Buy Qty 2.00
Sell Price 523.90
Sell Qty 15.00
OPEN 540.05
CLOSE 545.50
VOLUME 26062
52-Week high 614.50
52-Week low 335.00
P/E 35.85
Mkt Cap.(Rs cr) 3,374
Buy Price 522.80
Buy Qty 2.00
Sell Price 523.90
Sell Qty 15.00

Kirloskar Pneumatic Company Ltd. (KGKHOSLA) - Chairman Speech

Company chairman speech

We believe that we are in the right markets with the right productsand the right skillsets to create value that endures not just for today but forgenerations to come. I want to take this opportunity to thank all our teams partnersinvestors community members and the larger stakeholder community for their contributionin our exciting journey forward.

Dear Shareholders

I am pleased to share with you our Annual Report for the fiscal year2022. A year which began with the second COVID wave and ended with rising geopoliticaltensions in Europe unleashing more operating challenges for businesses worldwide.

The year which tested our resilience and yet we collectively withstoodthe challenges enhanced our performance on all fronts and embraced opportunities for afuture full of possibilities. In this context I must mention that FY 2022 also saw ourbrand Kirloskar being refreshed with a new logo and a new business vision.

Our legacy inspires us to innovate solutions that challenge conventionsand helps to create an inclusive future for customers partners employees investors andcommunities. We are limitless in terms of our aspirations capacity and capabilitiesaccess to national and international markets and the value that we can generate for ourstakeholders and the society.

Encouraging Performance

Our overall performance during the year reflected our resilience andthe power of our vision. Notwithstanding high commodity prices consequent rise in inputcosts and supply chain constraints the Company achieved volume growth in in itsproducts especially air compressors and CNG compressors. This was achieved by managingstrategic improvements in the product mix as well as revision in pricing.

Our CNG business continued to drive growth during the year as wecapitalised on rising demand by increasing our capacity to cater to the market. The CNGbusiness is well poised to grow significantly going forward. In fact almost 50% of theCNG stations in India are powered by Kirloskar.

Coming to our financial performance our revenue during the year grewby 24% YOY from H833 crores to Rs.1033 crores and profit before tax grew by 36% fromRs.84 crores in FY 2021 to Rs.114 crores in FY 2022. EBITDA on the other hand increasedby 23% over the previous year from Rs.123 crores to Rs.152 crores. Despite rise inoperating cost we were able to retain our EBITDA margin to over 14% in FY 2022 bysimplifying our operations optimising costs across the board and taking appropriatestrategies to lower our cost of capital.

These measures enabled us to maintain healthy cash flows throughout theyear. Going forward significant capital expenditure is being committed to meet thegrowing market demand for our products and to fast-track our growth aspirations. For thefirst time we have received over Rs. 100 crores worth of export orders and cumulativelywe have over Rs. 1250 crores of orders in hand. This shows the demand of our productsacross national and international markets and our growing brand recall.

We will continue to build further capabilities and capacities forfuture growth. The year also saw a major boost in our R&D initiatives. Our newlydeveloped screw compressors for oxygen generation have been very well received in themarket. There are more innovative products in the pipeline. Going forward we willcontinue to file for more patents to safeguard our intellectual property.

Beyond Business Priorities

As a responsible business our impact goes beyond immediate businesspriorities. Challenges call for champions to rise to the occasion. Our Company was one ofthe few that answered the call for action during the second COVID-19 wave. We deliveredhigh-capacity compressors capable of delivering critical oxygen across the country andhelped save precious lives.

We also ramped up the production of defence-related equipment to helpthe nation in times of need. Our teams have been at the forefront of contributing to theinitiatives taken across the country to decarbonise the economy through the use of biogasand other alternative biofuels such as methanol which have a lighter impact on theenvironment.

Limitless Optimism

We believe that we are in the right markets with the right productsand the right skillsets to create value that endures not just for today but forgenerations to come. I want to take this opportunity to thank all our teams partnersinvestors community members and the larger stakeholder community for their contributionin our exciting journey forward.

I am happy to announce that the Board with the approval of all ouresteemed shareholders has declared a final dividend of H2.40 (120%) per equity share ofH2 fully paid subject to shareholder's approval taking the total dividend for theyear to 200%.

We look forward to your continuing support in helping us reach manymore milestones in a limitless future together.

Regards

Rahul C Kirloskar
Executive Chairman

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