Why Kirloskar Pneumatic shares hit lower circuit today?

Their order book stood at Rs 1,040 crore as of July 1, 2021 compared to Rs 868 crore on July 1, 2020, representing an increase of about 20 per cent YoY.

Kirloskar Pneumatic Company, a major player in air, refrigeration & gas compression business in India recently announced Q1FY22 financial results.   

The company’s operating revenue came in at Rs 169 crore as compared to Rs 80 crore in the corresponding period last year; thereby, registering 108 per cent YoY growth. EBITDA jumped from Rs 1.5 crore in Q1FY21 to Rs 19.8 crore in Q1FY22. EBITDA margin came in at 11.5 per cent for the quarter ended June 2021. Profit after tax catapulted from the previous to Rs 2.74 crore for Q1FY22 compared to a loss of Rs 5.7 crore in Q1FY21.   

Its order book stood at Rs 1,040 crore as of July 1, 2021 compared to Rs 868 crore on July 1, 2020, representing an increase of about 20 per cent YoY.  

In a filing with the exchange, the company stated, “Order booking during the first quarter was encouraging particularly in CNG compressors and compressors for generation of oxygen required to battle the second wave of COVID-19 pandemic. Our company prioritised the needs of the nation by stepping up the production of these compressors for oxygen plants. The company will continue to supply these products in subsequent quarters also. Sufficient inventory and resources have been made available for this purpose even though some supply chain disruptions are still being experienced. Compression business now accounts for over 95 per cent of the company’s revenue and remains as the only reporting segment. All other activities have been grouped under other non-reportable segments.” 

Kirloskar Pneumatic Company is engaged in the business of compression & transmission segments, primarily serving sectors of oil & gas, engineering, steel, cement, food & beverage by offering engineered products and solutions. The compression segment is engaged in design, manufacture, supply as well as erection/commissioning of a wide range of air, gas, and refrigeration compressors, packages & systems. Besides, the transmission segment is engaged in the design, manufacture as well as supply of railway traction gears and customised gearboxes for windmill, industrial & marine applications.   

The scrip of Kirloskar Pneumatic locked in at a 5 per cent lower circuit and touched a low of Rs 340.30 per share during the early market hours on August 11, 2021 (Thursday).