KSB Pumps Company Limited

KSB Pumps Company Limited (PSX: KSBP) is a KSB group company incorporated in Pakistan in 1959. The company’s core business is the manufacturing and selling of industrial pumps, castings, valves and related products for industrial, construction and business services, energy, water and waste water applications. Besides catering to the needs of local market, KSBP has a significant export market in USA, UK, Canada, Australia, France and Germany. KSBP is a subsidiary of KSB SE & Co. KGaA. Pattern of Shareholding As of December 31, 2025, KSBP has a total of 30. 90 million shares outstanding which are held by 2579 shareholders. Associated companies, undertakings and related parties (parent company) have the majority stake of 72. 54 percent in the company followed by local general public holding 16. 79 percent shares. Banks, DFIs, NBFIs account for 4. 17 percent shares of KSBP while Modarabas & Mutual funds hold 3. 75 percent shares. The remaining shares are held by other categories of shareholders. Historical Performance (2021-25) The topline and bottomline of KSBP followed a downward trajectory until 2020. The next two years mark an upward trend for both topline and bottomline. In 2023, while KSBP’s topline reasonably grew, its bottomline drastically fell. In 2024, the company’s topline ticked up marginally however its bottomline strengthened by manifold. The same pattern continued in 2025. The company’s margins portray an asymmetrical pattern over the years. The detailed performance review of the period under consideration is given below. In 2021, the company’s business activity geared up with topline growth of 20. 18 percent year-on-year. KSBP’s net sales were recorded at Rs. 4334. 46 million in 2021. Although economic activity remained weak in the 1HCY21, sound recovery in the second half of the year spoke for itself. The main areas which propelled KSBP’s growth in 2021 were general industry, petrochemicals, building services, foundry business and intercompany export business. There were significant price pressures and supply disruptions during the year. The company was able to partially pass on the price increase to the customers, however, gross profit slipped by 0. 04 percent in 2021 with GP margin falling down to 13. 71 percent from 16. 49 percent in the previous year. Operating expenses grew in line with inflationary pressure, however, operating profit slid by 49. 15 percent year-on-year with OP margin hovering around 0. 87 percent in 2021 versus 2. 05 percent in 2020. Other income provided much needed support to the bottomline as it grew by 21. 25 percent in 2021 on account of exchange gain, commission income, and sale of scrap, recognition of deferred government grant as well as reversal of doubtful debts. Finance cost slumped by 19. 46 percent in 2021 due to lower discount rate. Short-term finance significantly grew in 2021 which drove the gearing ratio up to 48 percent. Net profit grew by 65. 67 percent year-on-year in 2021 to clock in at Rs. 27. 29 million with EPS of Rs. 2. 07 and NP margin of 0. 63 percent. This was against the EPS of Rs. 1. 24 and NP margin of 0. 46 percent recorded in 2020. 2022 also proved to be a great year for KSBP despite all the economic headwinds. Sales revenue grew by 14. 55 percent year-on-year to clock in at Rs. 4965. 06 million. This was on the back of superior export sales strategy whereby the company sold its products to its mother company in Germany and sister companies in Saudi Arabia, South Africa and Turkey. Focusing on marine industry in Karachi also bore positive results for the company in 2022. Supply of reverse engineering products locally as well as in the Middle East, African and Russian markets by inaugurating a new furnace also proved to be a good omen for KSBP. The main contributors were general industry, petrochemicals and building services. High inflation, Pak Rupee depreciation and escalating energy tariffs resulted in 12 percent hike in cost. However, with revised price strategy, market and product diversification, KSBP was able to achieve 30. 35 percent higher gross profit in 2022 with GP margin moving up to 15. 60 percent. Operating expense mounted by 10. 79 percent in 2022 mainly on account of higher forwarding expense, travelling & conveyance charges as well as repairs & maintenance. KSBP registered 350. 52 percent higher operating profit in 2022 with OP margin climbing up to 3. 18 percent. Other income improved by 64. 91 percent in 2022 due to superior exchange gain, scrap sales and interest on long-term deposits. However, this was offset by 134 percent higher finance cost incurred by the company in 2022. Elevated finance cost was the result of monetary tightening. Gearing ratio slipped to 45 percent in 2022. KSBP posted net profit of Rs. 43. 34 million in 2022, up 58. 82 percent year-on-year with EPS of Rs. 3. 28 and NP margin of 0. 87 percent. In 2023, KSBP’s net sales grew by 15. 91 percent to clock in at Rs. 5755. 04 million. This was on account of a robust inter-company export business. Besides, water, general industry, petrochemicals and building services also proved to be the major revenue drivers in 2023. Sharp price hikes due to inflation and Pak Rupee depreciation and supply chain disruptions on account of import restrictions increased the cost; however, KSBP was able to pass on the impact of cost hike to its consumers. This resulted in 51. 50 percent higher gross profit in 2023 with GP margin jumping up to 20. 39 percent. Operating expense multiplied by 42. 70 percent in 2023. This was on account of elevated payroll expense, forwarding charges, royalty & trademark charges, travelling & conveyance; IT related charges as well as higher advertising budget. KSBP streamlined its workforce from 306 employees in 2022 to 285 employees in 2023. The company also booked higher net impairment loss on financial assets in 2023 which also drove up its operating expense. Despite taller operating expense, KSBP recorded 85. 80 percent higher operating profit in 2023 with OP margin of 5. 10 percent. Other income drastically fell by 46. 25 percent in 2023 as the company didn’t record any exchange gain and interest on long-term deposits in 2023. Finance cost surged by 46. 36 percent in 2023 on account of unprecedented level of discount rate and increased borrowings which drove up its gearing ratio to 47 percent. Consequently, net profit slumped by 98 percent to clock in at Rs. 0. 84 million with EPS of Rs. 0. 06 and NP margin of 0. 01 percent – the lowest level ever witnessed by the company. In 2024, KSBP recorded net sales of Rs. 5775. 53 million, up 0. 36 percent year-on-year. During the year, the company expanded its business in key export areas as well as Supreme SERV (spare parts business) in 2024. Export sales constituted 26 percent of the company’s sales in 2024 which majorly comprised of sales made to KSB Group in Germany followed by export sales made to Chile, South Africa and Spain. Supreme SERV contributed around 14. 16 percent to the total sales mix of KSBP in 2024. In 2024, water market area proved to be the key revenue driver. Cost of sales inched up by 0. 27 percent in 2024 as the company is focusing on alternate sources of energy by installing 2. 019 MW of solar power plant which is squeezing its energy cost. This enabled KSBP to attain 0. 69 percent higher gross profit in 2024 with GP margin jumping up to its highest level of 20. 46 percent. Operating expense dipped by 0. 22 percent in 2024 particularly because the company booked net impairment gain of Rs. 4. 819 million on its financial assets in 2024 versus net impairment loss of Rs. 110. 874 recorded in the previous year. Conversely, distribution expense and administrative expense continued to hike on the back of higher payroll expense as well as travelling & conveyance charges incurred during the year. Profit related provisioning also increased in 2024. Operating profit ticked up by 3. 40 percent in 2024 with OP margin slightly increasing to 5. 25 percent. Other income provided considerable support to KSBP’s bottomline in 2024 as it picked up by 47. 35 percent on the back of superior scrap sales, sundry income, commission, exchange gain and profit on bank deposits. KSBP was able to cut down its finance cost by 20. 73 percent in 2024 due to the onset of monetary easing in the latter half of the year as well as easing off its debt burden through the issuance of 17. 70 million right shares during the year. This took the company’s outstanding share capital to 30. 90 million shares as of December 31, 2024. KSBP’s net profit was recorded at Rs. 55. 91 million in 2024, up 6532. 62 percent year-on-year. This translated into EPS of Rs. 2. 85 and NP margin of 0. 97 percent in 2024. In 2025, KSBP recorded 14 percent year-on-year growth in its net sales which clocked in at Rs. 6584. 36 million. The main revenue driver was pumps and valves sales – driven by improved order intake from water, petrochemical, infrastructure and general market. This was on the back of increased public sector initiatives undertaken during the year. The company’s authorized distributors played a pivotal role in boosting the company’s sales volume. KSBP’s authorized partners were allowed to use the E-sales platform in 2025 which drove 10 percent sales in its opening year. Export sales were recorded at Rs. 1897. 709 million in 2025, up 25. 47 percent year-on-year. Export sales contributed 28. 82 percent to the overall sales mix of KSBP in 2025 versus its share of 26. 19 percent in 2024. Sales made to South American and Asian markets posted staggering growth in 2025. Local sales grew by 9. 94 percent to clock in at Rs. 4686. 65 million in 2025. Cost of sales grew by 9. 20 percent in 2025 – considerably less when compared to topline growth recorded during the year. This was on account of cost cutting initiatives and BMR drives undertaken over the year. Sand reclamation project is one of the noteworthy developments commenced by the company to control cost. This resulted in 32. 67 percent higher gross profit in 2025, signifying cost optimization, better sales mix, increased sales volume and price optimization. GP margin progressed to 23. 81 percent in 2025. Operating expense spiked by 59. 88 percent in 2025 due to higher payroll expense, forwarding charges, IT services charges, regional service charges and provisioning done for WWF and WPPF. Another notable factor which inflated the company’s expenses in 2025 was a massive net impairment loss worth Rs. 267. 76 million booked on trade debts. KSBP’s operating profit deteriorated by 46. 13 percent in 2025 with OP margin falling down to 2. 48 percent. Other income stayed intact in 2025 as robust profit on bank accounts, hefty gain recognized on the sale of fixed assets and liabilities no longer payable written back were offset by no exchange gain as well as petite scrap sales, sundry income and indenting commission recorded in 2025. Finance cost dwindled by 93. 11 percent in 2025 due to lower discount rate. The company had a gearing ratio of 0 percent in 2025 due to no outstanding liabilities. KSBP posted net profit of Rs. 210. 213 million in 2025, up 275. 97 percent year-on-year. This translated into EPS of Rs. 6. 80 and NP margin of 3. 19 percent in 2025. Recent Performance (1HCY26) During the first half of 2026, KSBP recorded year-on-year growth of 30. 10 percent in its topline which clocked in at Rs. 4313. 52 million. This was due to improved order intake and order execution during the period. Water & general industry significantly buttressed the company’s topline followed by infrastructure related projects and after-market and service business. Gross profit picked up by 27. 87 percent in 1HCY26, however, higher energy cost and elevated prices of raw materials in the aftermath of Middle East crisis resulted in GP margin of 22. 26 percent in 1HCY26 down from GP margin of 22. 65 percent recorded in 1HCY25. Operating expense mounted by 16. 21 percent in 1HCY26 due to enhancement of operations and general inflationary pressure. The company recorded net impairment loss worth Rs. 77. 90 million on its financial assets in 1HCY26 versus net impairment loss of Rs. 75. 11 million recorded in 1HCY25. Operating profit strengthened by a massive 124. 85 percent in 1HCY26 with OP margin clocking in at 4. 65 percent versus OP margin of 2. 69 percent recorded in 1HCY25. Other income deteriorated by 43. 63 percent in 1HFY26 likely due to lower/no exchange gain and thinner scrap sales. Finance cost tumbled by 18 percent in 1HFY26. With no short-term and long-term liabilities on its books as of June 30, 2026, this appears to be bank charges and interest on WPPF. Net profit grew by 11. 64 percent to clock in at Rs. 171. 43 million in 1HFY26. This translated into EPS of Rs. 5. 55 and NP margin of 3. 97 percent in 1HCY26 versus EPS of Rs. 4. 97 and NP margin of 4. 63 percent in 1HCY25. Future Outlook Public sector development activities are expected to gain pace particularly in the water and waste management sectors. This may increase the demand of KSBP products. Gradual developments in steel, sugar, fertilizer, petrochemical, municipal development and automobile sectors will also strengthen the business outlook of KSBP. The company’s sound presence and an urge to continuously expand in the reverse engineering and spare parts business will also yield positive results in the future. Focus on enhancing export sales will also diversify the geographical mix of the company. Between March to May, 2026, KSBP’s parent company, KSB SE & Co. KGaA made a series of purchases of the company’s shares from the open market which took its ownership from 72. 54 percent as of December 31, 2025 to roughly 80 percent at the end of June 2026. This reflects the strategic importance of the company to the KSB group. KSBP generated robust profit in 1HCY26 which is roughly equivalent to 82 percent of the profitability it reported in 2025.

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