Kennametal India Limited (KIL) has reported a solid performance for the first quarter, with revenue growth and improved profitability. The company's financial results, released on August 13, showcase its resilience in a dynamic market environment.

Revenue Growth

KIL reported a revenue of ₹3234.00 million for Q1, representing a 6.9% increase from ₹3024.00 million in the same quarter of the previous year. This growth was primarily driven by strong market performance across the company's diverse portfolio of tooling, wear-resistant, and machining solutions.

Profitability Metrics

The company's net profit for the quarter rose to ₹313.00 million, up from ₹303.00 million in the corresponding period last year, marking a 3.3% increase. Profit Before Tax (PBT) also saw an improvement, reaching ₹413.00 million compared to ₹400.00 million in the same quarter of the previous fiscal year, reflecting a 3.2% growth.

EBITDA Performance

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q1 increased to ₹494.00 million from ₹487.00 million year-over-year. However, the EBITDA margin experienced a slight decline, settling at 15.28% compared to 16.10% in the previous year.

Management Commentary

Vijaykrishnan Venkatesan, Managing Director of KIL, commented on the results, stating, "We continued our revenue growth this quarter, while enhancing operational efficiency to drive profitability. Despite uncertainties around tariffs and evolving market dynamics, we leveraged the momentum in our domestic market and continued to deliver innovative solutions that address our customers' most critical machining challenges."

Segment Performance

The company's financial results revealed segment-wise revenue for the quarter:

The hard metal and hard metal products segment showed significant growth, while the machining solutions segment experienced a slight decline compared to the same quarter last year.

Future Outlook

While Kennametal India has demonstrated growth in revenue and profitability, the company remains cautious about market uncertainties. The management's focus on operational excellence, cost efficiency measures, and innovation in addressing customer needs positions the company to navigate the evolving market dynamics effectively.

Kennametal India Limited, a subsidiary of Kennametal Inc., USA, continues to leverage its position as an industrial technology leader, serving customers across aerospace, earthworks, energy, general engineering, and transportation sectors in more than 60 countries.

Kennametal India Limited (KIL) has announced a significant interim dividend, offering shareholders a substantial payout as the company kicks off its dividend program. The machining solutions provider has declared an interim dividend of Rs 40.00 per share, doubling its previous year's payout.

Dividend Details

Key Points

• This marks Kennametal India's interim dividend announcement.
• The interim dividend of Rs 40.00 per share represents a 100% increase from the Rs 20.00 per share paid out in May 2023.
• Shareholders who purchase the stock by the end of today will be eligible for the dividend.

Dividend History

Kennametal India's decision to double its interim dividend signals a robust financial position and a commitment to returning value to shareholders. The company's recent dividend history shows:

• Previous Dividend: Rs 20.00 per share in May 2023
• Current Dividend: Rs 40.00 per share

This substantial increase in dividend payout may indicate strong performance, although investors should always consider multiple factors when making investment decisions.

About Kennametal India

Kennametal India Limited, a subsidiary of Kennametal Inc., USA, is a leading manufacturer of hard metal products and machine tools. The company serves various industries including automotive, aerospace, and general engineering, providing cutting tools and tooling systems that are crucial for manufacturing processes.

Investors and shareholders are advised to take note of the last purchase date and record date to ensure eligibility for this dividend payout. As always, it's recommended to consult with a financial advisor for personalized investment advice.