KSB - KSB LIMITED Share Price

The management of KSB Limited provides a positive outlook for the company, emphasizing robust performance and strategic growth initiatives. Key forward-looking points include:

1. Revenue and Profit Growth: Management reported consistent growth in revenue and profit, with revenue from operations growing at a CAGR of 16% and profit after tax (PAT) at 20%. Revenue increased from Rs.1,483 million to Rs.1,607 million.

2. Order Intake and Backlog: The company achieved an order intake of Rs.2,896 million in the first half of 2025, totaling Rs.17,381 million. As of June 30, 2025, the total orders in hand stand at Rs.26,969 million, which includes Rs.13,131 million from the nuclear segment.

3. Nuclear Business Development: Management anticipates significant revenue contribution from the nuclear sector, with a forecast of invoicing for two pumps in this fiscal year. They expect to invoice four to five pumps annually thereafter. The nuclear business is projected to account for a larger share of total revenue, potentially exceeding 20%.

4. Solar Segment Growth: The solar segment, which started slowly, is expected to scale more rapidly due to increased participation in tenders. YTD June 2025, order intake was Rs.125.1 million, indicating substantial growth potential. Management aims to expand significantly beyond the current Rs.200 crore revenue mark in this segment.

5. Export Performance: The export revenue, currently at 15% of total sales, is projected to grow, with management aiming to maintain a healthy absolute revenue increase. They expect export revenues to potentially reach Rs.400-450 crores.

6. Capex and Operational Expansion: The company is investing around Rs.120-130 crores annually in upgrading facilities and capacities, preparing for future growth across all segments, including newly explored areas like mining, firefighting, and the energy sector.

Overall, KSB Limited is positioned to leverage its strong order backlog and strategic initiatives to drive future growth, with both nuclear and solar segments playing pivotal roles in its revenue landscape.

Question 1: Mahesh from LIC Mutual Fund: "What was the contribution from nuclear and solar last year total and, three years down the line, what kind of contribution can come from these two segments?"

Answer: Last year, our sales revenue from solar was around Rs.190 crores, while nuclear revenue is yet to be invoiced but is expected to begin this year. We forecast that in three years, both segments could significantly enhance our revenue share as there is a robust order backlog of Rs.1,300 crores in the nuclear segment alone, suggesting that such growth will continue.

Question 2: Ashish from Sundaram Mutual Fund: "Will the working capital requirement increase due to the focus on the solar sector, given its historical demands?"

Answer: For nuclear contracts, we have milestone payments, which mitigate working capital issues; we remain cash positive. While solar does have a high working capital requirement initially, we're addressing these challenges. As we streamline operations, we expect working capital needs to stabilize, allowing us to manage financing through internal accruals.

Question 3: Nidhi Shah from ICICI Securities: "What is the expected order volume from the nuclear side if the site readiness is optimal?"

Answer: If everything aligns perfectly with the test bed's readiness, we anticipate invoicing about four to five pumps yearly after the current ones are operational. The first pump must undergo rigorous endurance testing, which paves the way for future orders.

Question 4: Kunal Sheth from B&K Securities: "What proportion of growth can we attribute to market conditions versus KSB's initiatives in product development?"

Answer: The market is growing around 8-9%, while KSB is exceeding that at 12-14%. This growth is mainly due to product innovations and enhancements in sectors like firefighting and marine. We are continuously filling gaps in our offerings, ensuring robust growth compared to the general market.

Question 5: Dhavan Shah from AlfAccurate Advisors: "When can we expect a significant revenue bump from our order book given the current execution rates?"

Answer: Given our current order book and execution timelines, we expect a strong second half. We're analyzing our sales pipeline, and with ongoing projects, we anticipate a notable increase as we complete installations and expand orders in the forthcoming months.

Question 6: Shiv Chanani from Baroda BNP Paribas: "How does the MBK 3-Star certification benefit our operations and prestige within KSB?"

Answer: The MBK 3-Star certification enhances our credibility, particularly for export opportunities, reinforcing client confidence in our facility's quality standards. It opens doors to collaborative projects with KSB's global partners, showcasing our capability in following the best practices.

Question 7: Mohit Surana from Monarch Networth Capital: "What insights can you share regarding the success of the recent advertising campaign for residential pumps?"

Answer: The campaign has indeed driven up our domestic pump business significantly, raising revenue by 12-14%. We've noted positive traction in our residential offerings, motivating us to expand marketing efforts, especially in diverse regional contexts to enhance brand recognition further.

Question 8: Unidentified Analyst: "Do we see opportunities in the pump storage space within the evolving market dynamics?"

Answer: Yes, we recognize significant potential within the pump storage sector, especially as PSUs announce various projects. While we don't currently have a complete range, we're actively exploring this opportunity to expand our market presence and product offerings accordingly.