Kirloskar Oil Engines Ltd Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Amit Shah - Antique Stockbroking Ltd., Research Division - Analyst : Congratulations for a very strong set of numbers. My first question was on the price hike. You mentioned that we have taken some price hikes during this particular quarter. So what is the quantum of the particular price hike. Arvind Chabra So quarter 1, our price increase to the market at an average level for the Power Generation was in the range of 6% to 7%. It varies from note to note. But average realization was in this range.

Question: Amit Shah - Antique Stockbroking Ltd., Research Division - Analyst : Sure, sir. Sir, also one more thing on the supply side, you mentioned, right, that we are facing some sort of challenges on the supply side. So if you can highlight what are the challenges? And whether going ahead do we see any retailing of those challenges? And if those challenges are resolved, what is the kind of growth that we can witness during the quarter?

Question: Amit Shah - Antique Stockbroking Ltd., Research Division - Analyst : And one more question on from my side. Is it anything few new business ventures to enter into, one was on the biowaste management system and second was on the induction motor side, and thirdly, on the transformers business side that we are planning to enter in FY '23. So any update on all these 3 businesses? What is the status and whether we are doing that with our plan of entering all these businesses? If you can just highlight that. Rahul Prabhudesai So I'll -- this is Rahul. I will answer about electric motors parts. So electric motors, we have launched in the first quarter. And going by the response that we got, we seem to be going smoothly in terms of both the order booking as well as in terms of the sales. But also in terms of building our future range, so we have gone to the market with limited range to start with, but we are working very hard to complete our entire range going up to high range of 355 frame. And also going into Higher Efficiency Motors from IE2 to IE3 range. So that range completion is currently under way. The building up of channel partners in the whole of India is going on very well. The organization chart in terms of having our zonal teams, et cetera, is all in place. So all in all, I would say we are as per our plans in the electric motor space. As far as the transformer business goes, we have updated last time also that we are taking stock of the overall situation in the railways space as far as the tender flow is concerned. And therefore, we had put it on hold, at that time and the status continues as it is. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 11, 2022 / 10:30AM, KIRO.NS - Q1 2023 Kirloskar Oil Engines Ltd Earnings Call Arvind Chabra And Amit, this is Arvind again. Just to answer on the biogas side, biogas is not of an open consumer market kind of a product. It's a very specific project-related product. And we are doing pretty good there. Because this addresses a very specific -- because of the input fuel, it addresses a very specific segment of STP and the plant. And our Power Generation Solution is actually a part of the entire setup. So where we have very good tie-ups and as and when the new opportunities are coming in, we are the preferred supplier there. In fact, I would also like to add, there is one more product or the segment where we have entered in the recent past. I think that was the end of quarter 2 and early quarter 3 of FY '22, which was the Kirloskar firefighting pump for the domestic market. Earlier -- we definitely was one of the preferred market player in terms of the Indian supplies to the overall solution. But in last year quarter, we entered as full product supplier in the market. And that product has been doing pretty well. We have been growing continuously quarter-on-quarter. And the good part is in the last quarter, which is quarter 1 '23, we have even extended the range to the complete solution, which is Indian-driven pump set, motor-driven pump set and Jockey pump set as a solution, which definitely would help us to address a broader market and boost further in terms of our customer acquisition journey for that particular opportunity.

Question: Amit Shah - Antique Stockbroking Ltd., Research Division - Analyst : Am I better? Is this better? Arvind Chabra Yes, it's better.