Kirloskar Oil Engines shares rise on Q4 earnings

Kirloskar Oil Engines shares surged 10.3% on Thursday, reaching a day's high of Rs 811 on the BSE following the announcement of its Q4FY25 results. The positive market response came despite a 12% year-on-year decline in consolidated net profit to Rs 131 crore. At 1:35 pm, shares settled slightly, trading at Rs 803.75, representing a 9.36% increase, while the BSE Sensex was up by 0.25%. The company's market capitalisation stood at Rs 11,668.78 crore, with the stock noting a 52-week high of Rs 1,450 and a low of Rs 544.15.

In its quarterly report, Kirloskar Oil Engines highlighted a 5.6% rise in revenue from operations, totalling Rs 1,753 crore compared to Rs 1,660 crore a year earlier. Net sales for the quarter were Rs 1,401 crore, marking a 2% increase year-on-year and a significant 21% rise quarter-on-quarter. However, the earnings before interest, tax, depreciation, and amortisation (EBITDA) slightly decreased to Rs 171 crore from Rs 179 crore in Q4FY24, with the EBITDA margin dropping to 12.1% from 12.8%.

Kirloskar Oil Engines, known for manufacturing internal combustion engines, generating sets, and pump sets, also provides power solutions, including design, engineering, and commissioning services. Despite the drop in net profit, the company's revenue growth indicates robust operational performance. Analysts believe these results reflect steady demand in its sectors, offsetting challenges faced in profitability. This performance aligns with broader market trends where industrial and manufacturing companies are witnessing varied financial impacts due to changing economic conditions.