💰 Financial Performance

Revenue Growth by Segment

Total Operating Income grew 9.51% YoY to INR 166.05 Cr in FY25. Segment-wise, Portable Power Tools contributed 69% of revenue (down from 76% in FY24), Blowers contributed 23% (up from 20% in FY24), and the E-Cart segment grew significantly to 8% of revenue (up from 4% in FY24).

Geographic Revenue Split

The company sources 60% of raw materials domestically and 40% from overseas markets. While specific regional revenue splits are not disclosed, the company exports engineering products like castings, forgings, and fasteners to various international markets.

Profitability Margins

Net Profit Margin improved to 8.39% in FY25 from 7.95% in FY24 and 5.62% in FY23. This steady climb is attributed to controlled overheads and a shift toward higher-margin products like larger-sized blowers.

EBITDA Margin

PBILDT margin stood at 16.01% in FY25, representing a YoY increase of 87 basis points from 15.14% in FY24. The margin has expanded from 12.48% in FY23 due to the introduction of new power tool models and larger blower units.

Capital Expenditure

As of March 31, 2025, Property, Plant and Equipment stood at INR 25.56 Cr. The company reported Capital Work-in-Progress of INR 0.35 Cr for FY25, compared to zero in the previous year, indicating new ongoing investments.

Credit Rating & Borrowing

CARE Ratings reaffirmed 'CARE BBB; Stable' for long-term facilities and 'CARE A3+' for short-term facilities in July 2025. The company utilizes cash credit facilities with an average utilization of 82% on a sanctioned limit of INR 30.25 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include ferrous castings, steel, copper wire, and non-ferrous castings, which collectively account for approximately 65% of total sales value.

Import Sources

Approximately 40% of raw materials are imported from overseas markets, while 60% are sourced from domestic suppliers within India.

Key Suppliers

Not specifically named in the documents, but the company maintains a diversified supply chain to mitigate counterparty risks.

Capacity Expansion

Current manufacturing is focused on three divisions: Power Tools, Blowers, and E-Carts. While specific unit capacity is not disclosed, the company is actively scaling the E-Cart line to diversify its revenue base.

Raw Material Costs

Raw material costs represent 65% of revenue. Profitability is highly susceptible to volatility in steel and copper prices because intense competition limits the company's ability to pass on cost increases to customers.

Manufacturing Efficiency

Efficiency is driven by a workforce of 225 workers. The Blower division operates on a 'make-to-order' basis to optimize production and reduce unsold inventory risks.

Logistics & Distribution

Distribution is handled through 500 dealers. The Debtors Turnover Ratio stood at 4.99 in FY25, reflecting stable collection efficiency from the distribution channel.

📈 Strategic Growth

Expected Growth Rate

9.5%

Growth Strategy

Growth is targeted through business diversification, specifically increasing the revenue share of the E-Cart segment. The company is also launching larger-sized blowers and new power tool models to capture higher-margin industrial segments and institutional clients.

Products & Services

Portable electric power tools, industrial blowers, and E-Carts (electric vehicles), along with after-sales servicing and spare parts.

Brand Portfolio

KPT (formerly Kulkarni Black & Decker).

New Products/Services

Recent launches include larger-sized blowers and new product lines in the power tool division, which contributed to the 260 basis point margin improvement seen in FY24.

Market Expansion

The company is targeting institutional clients for E-Carts and expanding its engineering exports of castings and forgings.

Market Share & Ranking

The company operates in a highly fragmented industry with intense competition from both organized and unorganized players; specific ranking is not disclosed.

Strategic Alliances

Originally a JV with Black & Decker, USA; currently 100% promoter-led by the Kulkarni family after acquiring the partner's stake.

🌍 External Factors

Industry Trends

The industry is shifting toward electric mobility and energy-efficient industrial equipment. KPT is positioning itself by pivoting from 76% power tool reliance toward a more balanced mix including E-vehicles and blowers.

Competitive Landscape

Faces intense competition from large organized players and numerous unorganized small-scale manufacturers, leading to persistent pricing pressure.

Competitive Moat

The moat is based on a 40-year brand legacy and an extensive distribution network of 500 dealers. However, this is tempered by low technological entry barriers in the power tools segment.

Macro Economic Sensitivity

Highly sensitive to industrial growth and fuel prices; rising fuel costs are a positive driver for the E-Cart division's demand.

Consumer Behavior

Shift toward e-vehicles due to rising fuel prices is a primary consumer trend benefiting the company's newest segment.

Geopolitical Risks

Export operations for castings and forgings are subject to international trade regulations and global engineering demand.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and engineering manufacturing standards. The company must comply with safety norms for electric vehicles and industrial blowers.

Environmental Compliance

The company has a CSR committee and policy, though specific ESG compliance costs in INR are not detailed.

Taxation Policy Impact

The company follows standard Indian corporate tax rates; specific effective tax rate % is not disclosed in the snippets.

Legal Contingencies

The company has disclosed the impact of pending litigations in Note 28 of the Financial Statements. While specific values are not listed in the summary, the auditors confirm these are disclosed and factored into the financial position.

⚠️ Risk Analysis

Key Uncertainties

Product concentration risk remains high with 69% of revenue tied to power tools. A significant downturn in this single segment could impact total revenue by over 50%.

Geographic Concentration Risk

Sourcing is 40% international, creating exposure to global supply chain disruptions and forex volatility.

Third Party Dependencies

Dependency on a 500-dealer network for the majority of sales; any disruption in this distribution channel would immediately halt revenue flow.

Technology Obsolescence Risk

The power tools industry has low technological barriers; the company must continuously innovate (as seen with E-Carts) to avoid obsolescence against cheaper unorganized imports.

Credit & Counterparty Risk

The company provides credit periods of 75-110 days to dealers. While the top 10 customers only represent 18% of sales, the long operating cycle of 175 days indicates significant capital is tied up in receivables.