• Operating income excluding other operating income was up by 19% to Rs 42.85 crore with upside coming from all business segments. While the segment revenue of super abrasives was up by 7% to Rs 29.07 crore (or 68% of sales) that of machines & accessories was up by sharp 62% to Rs 8.68 crore (or 20% of sales). The segment revenue of others was up by 47% to Rs 5.10 crore.
• The EBIT was up by 22% to Rs 8.66 crore with double digit growth in segment profit of all business segments. Segment profit of super abrasives was up by 12% to Rs 6.15 crore gained by higher sales as well as expansion in segment margin. Segment margin of super abrasives was up by 100 bps to 21.2%. However with 30 bps contraction in segment margin, the segment profit of machines & accessories was higher by 60% to Rs 1.34 crore. The segment profit of others was up by 54% to Rs 1.17 crore.
• OPM expanded by strong 220 bps gained largely by lower staff and other expenditure. The material cost as proportion to sales net of stocks was up by 230 bps to 35.1%. But the staff cost was down by 270 bps to 17.1% and the other expenses was down by 130 bps to 27.2%. OPM expansion was largely due to product mix and cost rationalization measures introduced during the quarter.
• The other income was up by 141% to Rs 0.65 crore. The interest was nil for the quarter as well as corresponding previous period. The depreciation stood flat at Rs 2.58 crore. Thus the PBT was up by 61% to Rs 7.17 crore.
• The taxation was higher by 50% to Rs 1.73 crore but the tax rate was lower at 24.1% compared to 25.8% in corresponding previous period. Thus the growth at PAT was 65% to Rs 5.44 crore.
• Other comprehensive expense was Rs 0.86 crore compared to an income of Rs 0.18 crore in the corresponding previous period. Thus the total comprehensive income was up by 32% to Rs 4.58 crore.

Standalone sales net of GST/excise was up by 19% to Rs 37.28 crore. Facilitated by 110 bps expansion in OPM, the operating profit was up by 26% to Rs 7.42 crore. After accounting for higher OI, nil interest and lower depreciation, the PBT was up by 52% to Rs 5.52 crore. With taxation stand higher by 53% to Rs 1.42 crore, the PAT was up by 52% to Rs 4.10 crore. With other comprehensive expense stand lower by 46% to Rs 0.14 crore, the net profit was up by 62% to Rs 3.96 crore.

On deducting standalone figures from consolidated figures, the sale of subsidiaries for the quarter was up by 33% to Rs 6.33 crore. But with OPM expand by 870 bps to 26.5%, the operating profit jumped up by 98% to Rs 1.68 crore. Eventually the PAT more than doubled (up by 123%) to Rs 1.34 crore.

Nine month performance

Consolidated sale for the period was up by 20% to Rs 127.6 crore and with OPM expand by 480 bps to 21.1% the operating profit was up by 56% to Rs 26.95 crore. Building on good operating show, higher other income and lower interest cost, the PAT was eventually higher by 87% to Rs 15.41 crore.

Other developments

To pay an Interim dividend of Rs 15/- per share (150% on face valve of equity share of Rs. 1each) as approved by Board of Directors on their meeting held on January 23, 2019.