1This is a proprietary document of Kirloskar Brothers Ltd.

Kirloskar Brothers Ltd.

Financial Analysts Meet

Quarter 3

FY 2011-12

January 24, 2012

This is a proprietary document of Kirloskar Brothers Ltd.

COMPANYWIDE HIGHLIGHTS

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• Overall global economic decline and the Indian economic scenario affecting liquidity and

growth adversely

• Slow decision making in major government policies for the Power sector.

• Cash crunch in the private power sector

• Focus on selective sale depending on financial position of customer.

• Project sectors have booked only product orders in the quarter.

• Civil portion of all projects likely to be completed by next FY.

• AP situation improved and payments are being released, going forward, focus will be on

collection of retention money.

• Agri business, which is seasonal in nature has picked up, after a slow down for two

months due to extended monsoon

SECTOR HIGHLIGHTS

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Water Resource Management

• 90 MLD water delivered to Bhopal city while 180 MLD water supply system

is likely to be completed by June 2012.

.

Irrigation

• Situation in Andhra Pradesh has improved and payments being made as

committed.

SECTOR HIGHLIGHTS

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Power:

• Successful commissioning of CW Pumps for Reliance Energy’s Rosa Thermal

Power Station.

• Successful commissioning of CW pumps at 660 MW Essar Salaya Power Plant –

KBL’s first indigenous concrete volute pump (CVP) for 660 MW unit.

• Successful commissioning of water system package for 1x500 MW DVC Koderma

- DM Plant. – KBL's first plant water system package

• Successful completion of 72 Hrs. full load testing for KBL's first vertical Francis

machine for KSEB’s 1 x 3.5 MW Dhom HEP Ranni Perunad– Unit I & II

synchronized with grid - Largest horizontal kaplan with runner diameter of 2.8 m.

Building & Construction :

• Submitted approximately 120 offers for multi outlet multistage pumps that would

likely lead to a shift from standard product to high margin product business in fire

fighting.

SECTOR HIGHLIGHTS

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Industry:

• First ever order for LLC and iCP pumps received from sugar industries – 5 nos.from

Lakshmi Sugar Mills and 2 nos iCP pumps from Lakshmi Sugar Mills.

• Concept of VTP - LLC version accepted by Century Rayon that could lead to potentially

good business

• Workshop on LLC pumps and valves conducted in JSW Ispat Industries, Pen.

Gas Oil & Defense:

• String test successfully carried out for four out of seven packages of ONGC offshore fire

fighting platform project at SPP, UK. Balance three packages string tests were

successfully carried out and witnessed at Fluid Power, USA.

• Received order for development and supply of special axial flow pump for Amphibian

Tank from Vehicle Research Development Establishment.

SECTOR HIGHLIGHTS

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Distribution:

• Crossed break even quantity per month of 11,000 pumps at Coimbatore plant.

• Executed first order of 14 nos. stainless steel submersible pumps.

• Appointed 20 new dealers and 150 new retailers in Q -3.

Customer Service & Spares :

• Achieved more than 75% customer satisfaction level on services provided to

customers on Dewas range of products, based on a survey conducted

FACTORY HIGHLIGHTS

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Kirloskarvadi Factory:

• Received FM approval & UL listing for VT Pump series, a joint project with SPP.

Large Pump Division

• Successfully executed prestigious order of Fujairah in 12 weeks from PO date.

• Introduced complete cartridge assembly check fitting for CVP/MVP pumps

• Completed order for Bechtel, USA and hydel turbines for 2.2 MW Pench LBC.

Small & Medium Pump Division

• Completed line re-layout of split-case, process pump and multi-stage pumps

divisions, leading to significant capacity rise.

8This is a proprietary document of Kirloskar Brothers Ltd.

FACTORY HIGHLIGHTS

Dewas :

• Foundry won ‘Regional Productivity Championship’ award from IMTMA.

• Launched Mobile Pump Controller at Shirval plant.

• DB Pumps production shifted from Kirloskarvadi to Dewas

FACTORY HIGHLIGHTS

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Kondhapuri :

• Completed Proof of Design (POD) for 1200mm BFV PN10 (2% NiCI)

• Obtained consent to operate from Maharashtra Pollution Control Board

(MPCB) till Jul-13

• Conducted vendor meet of suppliers.

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AHMEDABAD PLANT PROGRESS

07.01.11

AHMEDABAD PLANT PROGRESS

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This is a proprietary document of Kirloskar Brothers Ltd.

COMPANYWIDE PENDING ORDERS

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Sector 1Q 2Q 3Q 3Q

(Rs.In Crores) Jun-11 Sep-11 Dec-11 % of Total

Irrigation (IRR) 1,463 1,424 1,359 52%

Water Resource Management (WRM) 356 353 292 11%

Power (POW) 854 790 710 27%

Gas, Oil & Defence (GOD) 120 125 107 4%

Industry (IND) 75 65 78 3%

Building & Construction (B&C) 20 27 25 1%

Distribution (DIS) 17 32 40 2%

Customer Service & Support (CSS) 44 27 23 1%

TOTAL 2,949 2,843 2,635 100%

Orders Received Quarter - I Quarter - II Quarter - III

Rs. In Crores 352 306 210

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Q3 FINANCIALS - STANDALONE HIGHLIGHTS

Total sales are at Rs. 12,592 M as against Rs.12,212 M in PY

All product sectors have crossed sales over Previous year

Share of own products has increased to 59% as against 55% in previous year

PBT has increased to Rs. 67 crores as against Rs. 60 crores in previous year

CY PBT includes non-operating income of Rs. 35 crores being profit on sale of

investment in Gondwana Engineering Ltd.

Borrowings reduced by Rs. 25 crores in Q3 over Q2.

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Q3 KEY FINANCIALS - STANDALONE

( Rs in Crores )

Particulars

Dec-11 Dec-10 Dec-09

KEY FINANCIALS

Total Income 1,270 1,231 1,400 1,951

P B D I T 80 105 130 163

P B T 32 60 85 103

P A T 23 41 55 61

CASH PROFIT 46 63 74 91

KEY FINANCIAL RATIOS

P B I D T % AGE 6% 9% 9% 8%

P B T % AGE 3% 5% 6% 5%

R O C E % AGE 6% 9% 15% 12%

Period Ending Year Ended

Mar 31,

2011

Note: Figures of period ending Dec 2011 excludes profit on sale of investment Rs. 35 crores

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Q3 KEY FINANCIALS -CONSOLIDATED

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( Rs in Crores )

Particulars

Dec-11 Dec-10 Dec-09

KEY FINANCIALS

Total Income 1,896 1,797 1,869 2,663

P B D I T 125 151 172 244

P B T 65 90 108 161

P A T 44 57 67 99

CASH PROFIT 74 90 95 145

KEY FINANCIAL RATIOS

P B I D T % AGE 7% 8% 9% 9%

P B T % AGE 3% 5% 6% 6%

R O C E % AGE 8% 11% 15% 16%

Period Ending Year Ended

Mar 31,

2011

Note: Figures of period ending Dec 2011 excludes profit on sale of investment Rs. 35 crores

16This is a proprietary document of Kirloskar Brothers Ltd.

THANK YOU