Mumbai: Pump maker Kirloskar Brothers expects to maintain revenue growth in the current financial year at about 10 percent and would incur capital expenditure of around 400 million rupees or more, a top official told Reuters after market hours on Thursday.
The company posted a net profit rise of 75.32% to Rs118 crore for FY10, on a 10.21% growth in net sales to Rs201.8 crore.
“We believe that the (international) markets that we operate in have been moderately affected, but we will see how...our own strategies for growth will ensure that we continue to grow,” chairman and managing director Sanjay Kirloskar said.
The Pune-based firm on 29 April said it acquired 90% stake in South Africa’s specialty pump maker Braybar Pumps for Rs11 crore.
The acquisition comes after a long working association with Braybar and would complement Kirloskar Brother’s activities in the South African market, he said.
“For us this (South Africa) is one area where we believe there are tremendous opportunities for a company like Kirloskar Brothers. South East Asia is also another part of the world where there are tremendous opportunities.”
The core businesses of KBL are large infrastructure projects such as water supply solutions to power plants and irrigation projects, industrial pumps, agriculture and domestic pumps, valves and hydro turbines.
Its current order book for the projects business is between Rs300-350 crore, Kirloskar said.
The firm, established in 1888, has been regularly supplying critical pumps to the domestic nuclear industry and hopes to benefit from the government’s boost to nuclear power sector.
The state-run Nuclear Power Corporation of India has planned to increase country’s nuclear power capacity from present 4,500 MW to 7,000 by 2012, giving a boost to the nuclear power gear industry.
Shares in the firm closed down 1.59% in a weak Mumbai market on Thursday, which ended lower by 0.59%.