Transcript of the Conference Call
KIRLFER · price
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Kirloskar Ferrous Industries reported Q4 FY26 sales of INR 1,781 crores and full-year sales of INR 6,861 crores (up 3% YoY). PBT improved to INR 514.43 crores from INR 432 crores last year. Production was impacted by a 3.5-month stoppage at Hiriyur blast furnace due to weak market conditions, but Koppal operations performed well. The company is seeing a recovery in pig iron prices, with international prices at $475/MT and domestic prices up INR 4,000-5,000 per ton since December. Management targets 15% volume growth in castings for FY27, aiming to reach 1,85,000-1,90,000 MT. The Oliver merger is expected to close in the next couple of months. Capex plans of INR 600-700 crores per year include expansion of seamless tube capacity to 4 lakh MT and green energy projects.
Positive outlook as pig iron prices recover and casting volumes grow; management targeting EBITDA margin improvement toward 15% from current above 12.5%, with INR 70 crores power cost savings already achieved and additional INR 45 crores expected from new wind-solar projects.