KSB Ltd - Q1CY20 First Cut - ICICI Securities

CMP: Rs. 521; Market Cap: Rs. 1812 crore

Numbers are below estimates primarily due to deferral in the revenues post lockdown. Margins impacted due to unabsorbed fixed overheads

Q1CY20 Earnings Summary

KSB Ltd reported revenue fall of 11.2% YoY to Rs. 257 crore, impacted by subdued revenues from Pump segment (-11% YoY, Rs. 217 crore) as well as valve segment (-12% YoY, Rs. 40.7 crore)

OPM contracted by 400 bps YoY to 7% largely on account of lack of absorption of both employee and other expenses resulting into EBITDA fall of 43% YoY to Rs. 18 crore. EBIT margins from pump segment declined by 145bps YoY to 7.8% while the same from valve segment was up by 69bps YoY to 5.65%

Adjusting exceptional other income to the tune of Rs. 12.7 crore due to sale of office property, PAT was in loss of Rs. 1.8 crore against a profit of Rs. 16.6 crore in Q1CY19. Poor performance in the bottom line was on account of higher taxes (47% vs 34% in Q1CY19) along with sluggish operational performance and lower other income (Rs. 0.1 crore vs Rs. 3.6 crore in Q1CY19)

We will be coming out with a report soon.

Shares of KSB Ltd was last trading in BSE at Rs.520.5 as compared to the previous close of Rs. 514.3. The total number of shares traded during the day was 1218 in over 182 trades.

The stock hit an intraday high of Rs. 528 and intraday low of 514.25. The net turnover during the day was Rs. 634319.

Source : Equity Bulls

Keywords