Building a Stronger Future
We value our people and will work towards building a culture that fosters
collaboration, innovation and mutual growth.
Dear Shareholders,
As we reflect on the financial year 2024, I am delighted to share the numerous
achievements and strategic advancements of Kirloskar Ferrous Industries Limited (KFIL).
This year has been transformative, marked by significant milestones, including a major
development that will shape our future trajectory—the approval of the merger with
ISMT Limited by regulatory authorities.
Performance Overview
The fiscal year 2024 has presented a challenging environment, characterised by
volatility in input commodity prices and lower realisations in the pig iron market.
Despite these headwinds, our focus on strategic initiatives and operational efficiency has
enabled us to navigate through these turbulent times effectively. The first half of the
year witnessed a slowdown in the tractor industry, impacting our performance. However, the
second half saw a gradual recovery, aligning with our expectations and efforts. Our top
line and net profit figures have shown resilience compared to the previous year, a
testament to our adaptability and strategic management.
In response to the challenging economic landscape, we have made prudent decisions
regarding cost optimisation. Our initiatives, such as the pulverised coal injection
project, have significantly contributed to cost savings and efficiency improvements. These
efforts have not only helped in managing expenses but also enhanced our overall
operational efficiency.
Thus, the revenue from operations for FY 2024 was Rs. 6,134 crore with net profit of
Rs. 322 crore. These numbers represent the merged entity numbers.
Strategic Focus
I am pleased to announce that the merger between KFIL and ISMT Limited has been
approved by the regulatory authorities. This merger is a pivotal moment for both
companies, combining our strengths to create a more diversified and resilient entity. The
integration of ISMT's seamless tube manufacturing capabilities with KFIL's expertise in
pig iron and foundry-grade castings will enhance our product portfolio and market reach.
This strategic move will enable us to better serve our customers, optimise operations and
drive sustainable growth.
Geographic diversification has been bolstered by the acquisition of Oliver Engineering
Private Limited near Chandigarh, bringing us closer to our customers in the north. This
acquisition enables us to better serve our clients and expand our market presence in the
region.
Commitment to Sustainability
At KFIL, sustainability is not just a goal, it is an integral part of our business
strategy. This year, we made substantial investments in renewable energy projects,
aligning with our vision to reduce our carbon footprint and promote environmental
stewardship. Our plans to install approximately 200MW of renewable energy in the form of
solar and wind energy over the next 2-3 years underline this commitment. The first phase
of 35 MW is already operational, with another 35 MW set to be commissioned soon.
Innovation and Technological Advancements
Innovation remains a cornerstone of our growth strategy. We have invested in
cutting-edge technologies and advanced manufacturing processes to improve efficiency and
product quality. Our R&D efforts are focused on developing new alloys and materials
that cater to the evolving needs of our customers, ensuring we stay ahead in a competitive
market.
Employee Welfare and Community Development
Employee safety remains our utmost priority. We have continued to implement and enhance
safety measures to ensure a secure working environment. We have also implemented several
programmes aimed at enhancing employee well-being and skill development. Additionally, our
community development initiatives continue to make a positive impact on the lives of many,
reflecting our commitment to social responsibility.
In the coming year, with the KFIL and ISMT merger being approved by the regulatory
authorities, our focus will be on integrating the operations and teams effectively. We
value our people and will work towards building a culture that fosters collaboration,
innovation and mutual growth.
Outlook for the Future
Looking ahead, we are optimistic about the future of KFIL. Our focus will remain on
sustainable practices, innovation and creating value for all our stakeholders.
Conclusion
In conclusion, I would like to extend my heartfelt gratitude to our shareholders,
employees, customers and partners for their unwavering support and trust in KFIL.
Together, we will continue to build a resilient and sustainable future.
Thank you for your continued support.
Warm regards,
Atul Kirloskar
Chairman
Kirloskar Ferrous Industries Limited