The Tubes business is the bigger turnaround story as the division's EBIT margin grew from 2 percent in the June quarter to 8.1 percent in the current quarter.
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Kirloskar Ferrous reported revenue growth of 18 percent during the September quarter on a sequential basis. The earnings are being compared on a sequential basis as the base quarter did not include the numbers from Indian Seamless Metal Tubes.
The company's EBITDA increased 15 percent from the June quarter while margin remained stable at 11.4 percent.
Revenue from the Casting business increased 20 percent while the tubes business increased 11 percent quarter-on-quarter. The Tubes business is the bigger turnaround story as the division's EBIT margin grew from 2 percent in the June quarter to 8.1 percent in the current quarter.
The company announced the merger to amalgamate and consolidate the entire undertaking and business operations of Indian Seamless Metal Tubes Ltd. The appointed date for the proposed merger has been set as April 1, 2023.
Shareholders of ISMT will get 17 shares of Kirloskar Ferrous for every 100 shares that they own. The share swap implies that the merger will be at a 23 percent discount to ISMT's current market price.
Shares of Kirloskar Ferrous ended nearly 3 percent higher at Rs 284.
(Edited by : Rukmani Krishna)