Hifsa Raja

KSB Pumps Company Limited’s sales increased 19% to Rs3.6 billion in the nine months ending September 30, 2022, compared with Rs3 billion over the corresponding period of 2021. The company netted a gross profit of Rs535 million in 9MCY22 compared to Rs404 million in the same period of CY21, registering a growth of 33%.

The company posted a 157% growth in profit from operations, which clocked in at Rs239 million in 9MCY22 compared to just Rs93 million over the corresponding period of CY21. Similarly, the company recovered from a net loss of Rs12.6 million in 9MCY21, and made profit of Rs26 million in 9MCY22, posting a mammoth growth of 308% year-on-year, reports WealthPK.

Earnings Growth Analysis

The earnings per share growth of the company stood at a robust 66.94% in 2021. Prior to 2021, the EPS had been declining over the previous three years. It was Rs14.85 in 2018, Rs6.66 in 2019 and Rs1.24 in 2020. The EPS stood at Rs2.07 in 2021

Industry Comparison

Shabbir Tiles and Ceramics Limited, EMCO Industries Limited, Orient Rental Modaraba and Hinopak Motors Limited have all been regarded as rivals of KSB Pumps Company Limited. KSB Pumps has the third highest market capitalisation of Rs1.2 billion among its rivals. Whereas Hinopak Motors Limited has the highest capitalisation of Rs5.3 billion followed by Shabbir Tiles and Ceramics Limited with Rs1.9 billion.

Profitability

The company’s net profit margin kept declining from 2018 to 2020 before slightly reversing the trend in 2021. However, the gross profit margin showed a mixed trend during these years, while peaking at 19.49% in 2019 and dipping to 13.71% in 2021. 

Company Profile

KSB Pumps Company Limited is a foundry-based engineering firm engaged in manufacturing and selling industrial pumps, valves, castings and related parts. The company is a supplier of pumps, valves, and related systems for industrial applications, building services, process engineering, energy conversion, water treatment, water transport, solids transport, and other areas of application.

Its products include Zoro Stainless Steel Submersible Pump, which is made of corrosion and abrasion-resistant stainless steel; Macht - IEC Low Voltage Induction Motor, which is suitable for driving various kinds of machines or equipment, and Macht - KSB Submersible Motor, which is designed to drive water submersible pump and bears a waterproof design. The company caters to customers in the water, sewage, oil, energy, industry and construction sectors.

Credit: Independent News Pakistan-WealthPk