Kirloskar Oil Engines Shares Skyrocket 15% After Stellar Q2 Results! Investors Go Wild!

Kirloskar Oil Engines Limited witnessed a significant 15% jump in its stock price on Wednesday, November 12, reacting positively to its September quarter financial results announced after market hours on Tuesday. This marks the stock's strongest single-day gain since May.

The company posted a remarkable 34% revenue growth for the quarter, reaching ₹1,604 crore, up from ₹1,194 crore in the same period last year. This impressive performance was spearheaded by B2B sales, bolstered by substantial growth in the Power Generation and Industrial segments, which expanded by 40% compared to the previous year. The international business also maintained its strong momentum, particularly in the Middle East and North Africa regions.

Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) saw a 30% increase from the prior year, amounting to ₹214.5 crore. However, EBITDA margins slightly narrowed to 13.38% from 13.85%.

Net profit for the quarter showed a healthy 27% year-on-year increase, rising to ₹141 crore from ₹111 crore. Most key financial metrics surpassed Bloomberg consensus estimates, with the exception of margins.

The domestic business recorded a 35% growth to ₹1,406 crore, while exports also grew at a similar pace, reaching ₹187 crore.

As a result of this rally, Kirloskar Oil Engines shares are trading at ₹1072.32, up 13.5%, and the stock has now turned positive on a year-to-date basis.

Impact This news is highly impactful for investors in Kirloskar Oil Engines Limited, signaling strong operational performance and market demand. It could also positively influence investor sentiment towards the industrial equipment and power generation sectors. Rating: 8/10

Difficult Terms EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation. This metric represents a company's operating performance and profitability before considering financing costs, taxes, depreciation, and amortization.