- 03 Nov 2022
- ICICIdirect Research
KSB reports subdued set of numbers in Q2FY23
KSB - 929 Change: 15.80 (1.73 %)News:
Revenue for the quarter came in at Rs 431.3 crore, up 17.2% YoY & down 3.8% QoQ. Revenue from pump segment came in at Rs 431.3 crore up 15.1% YoY & down 7.9% QoQ. Valves sales came in at Rs 81 crore up 27.6% YoY 19.4% QoQ. Gross margins contracted ~200 bps QoQ & expanded ~220 bps YoY. KSB registered an EBIDTA margin of 12.5% vs 14% YoY & 13.6% QoQ. Surprise in EBITDA margin come in due to higher other expenses. Absolute EBIDTA came in at Rs 54.1 crore, down 11.5% QoQ. Tracking its operating performance, KSB ended the quarter with a PAT of Rs 37.3 crore down 17.8% QoQ & 1.6% YoY. PAT is cushioned by other income of Rs 10.6 crore
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The company is seeing strong traction from nuclear, petrochemical and mechanical seal segment and is focusing on new initiatives like digital sales and IT infra. KSB also has a strong growth prospects led by strong order enquiry by NPCIL, distillery segment and FGD pumps. Revenues from exports are also expected to increase to 20% of revenues which provides a great opportunity for KSB. Its current client portfolio includes Bhel, Thermax, Isgec, Patil Engineering, RK Engineering, L&T, Pooja Engineering, NTPC and ThyssenKrupp. Keeping in view the current Order Book & order enquiry and dominance on KSB in its segment we remain bullish on stock
Impact:
Positive