• Operating income excluding other operating income was down by 7% to Rs 36.36 crore with downside coming from both super abrasives and machines & accessories business segments. While the segment revenue of super abrasives was down by 13% to Rs 24.33 crore (or 67% of sales) that of machines & accessories was down by 5% to Rs 7.18 crore (or 20% of sales). The segment revenue of others was up by 49% to Rs 4.85 crore.
• The EBIT was down by sharp 67% to Rs 2.50 crore with lower profit from both super abrasives as well machines & accessories segments. Segment profit of super abrasives was down by sharp 83% to Rs 1.07 crore hit by both lower sales as well as sharp decline segment margin. Segment margin of super abrasives was down by 1840 bps to 4.4%. The segment profit of machines & accessories was lower by 27% to Rs 0.47 crore hit by lower sales as well as 190 bps fall in segment margin to 6.5%. The segment profit of others was up by 66% to Rs 0.96 crore.
• OPM crashed by 1410 bps to 7.7% largely hit by unfavourable product mix as well as fixed cost spread over relatively lower sales. The material cost as proportion to sales net of stocks was up by 230 bps to 36.3%. The staff cost was up by sharp 620 bps to 22.5% and the other expenses was up by 510 bps to 33.7%.
• The other income was down by 41% to Rs 0.66 crore. The interest was nil compared to Rs 0.15 crore in corresponding previous period. The depreciation stood lower by 7% to Rs 2.51 crore. Thus the PBT was down by 86% to Rs 0.99 crore.
• The taxation was lower by 55% to Rs 0.98 crore but the tax rate was higher at 99% compared to 30.7% in corresponding previous period. Thus the PAT was down by 100% to Rs 0.01 crore.

Standalone sales net of GST/excise was down by 12% to Rs 32.51 crore as both domestic sales and export sales tank by about 10% for the quarter. Hit by 1650 bps crash in OPM to 6.4%, the operating profit was fell by 75% to Rs 2.07 crore. After accounting for lower OI, lower interest and lower depreciation, the PBT was down by 83% to Rs 1.28 crore. With taxation stand lower by 57% to Rs 0.86 crore, the fall at PAT level was 93% to Rs 0.42 crore. With other comprehensive expense stand at Rs 0.44 crore (against a profit of Rs 1.14 crore in corresponding previous period), the net loss was Rs 0.02 crore compared to a profit of Rs 6.86 crore in the corresponding previous period.

On deducting standalone figures from consolidated figures, the sale of subsidiaries for the quarter was up by 23% to Rs 4.45 crore. With OPM expand by 620 bps to 17.3%, the operating profit jumped up by 92% to Rs 0.77 crore. Eventually the loss at PAT level has come down to Rs 0.41 crore compared to a loss of Rs 0.82 crore in the corresponding previous period.

Yearly performance

Consolidated sale for the period was up by 12% to Rs 164.56 crore and with OPM expand by 30 bps to 18.1% the operating profit was up by 14% to Rs 29.79 crore. Other income though stood lower, facilitated by lower interest cost and lower depreciation, the PBT was up by 22% to Rs 21.93 crore over and above good operating performance. The PAT was eventually higher by 17% to Rs 15.42 crore hit by 33% jump in taxation to Rs 6.51 crore.

Other developments

The Board of Directors has recommended a final dividend of Rs15/- per share (150% on face value of equity shares of Rs 10/- each) out of the current year's profits. With the Company having declared an interim dividend of Rs 15/- per share (150% on face value of equity shares of Rs 10/- each) at its Board Meeting held on 23rd January'2019, the total dividend for the year ended March 31, 2019is Rs 30/- per share (300% of the face value of equity shares of Rs 10/- each). The payment of final dividend is subject to the approval of the shareholders in the ensuing Annual General meeting of the company to be held on 22^nd July 2019.