• Operating income excluding other operating income was down by 5% to Rs 39.42 crore hit by sluggish demand from automobiles and related sectors such as engineering and cutting tools. The downside in sales came from super abrasives segment. While the segment revenue of super abrasives was down by 12% to Rs 24.62 crore (or 62% of sales) that of machines & accessories was up by 8% to Rs 10.20 crore (or 26% of sales). The segment revenue of others was up by 10% to Rs 4.60 crore.
• The EBIT was down by sharp 26% to Rs 6.95 crore with lower profit from both super abrasives as well as machines & accessories segments. Segment profit of super abrasives was down by sharp 34% to Rs 4.36 crore hit by both lower sales as well as sharp decline in segment margin. Segment margin of super abrasives was down by 590 bps to 17.7%. Despite higher sales, the segment profit of machines & accessories was lower by 30% to Rs 1.28 crore hit by sharp 690 bps fall in segment margin to 12.5%. The segment profit of others was up by 31% to Rs 1.31 crore.
• OPM crashed by 560 bps to 17.4% 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 536 bps to 35.4%. The staff cost was up by 210 bps to 19.3% and the other expenses was down by 50 bps to 28.3%.
• The other income was up by 163% to Rs 0.79 crore. The interest was nil for the quarter as well as corresponding previous period. The depreciation stood lower by 4% to Rs 2.52 crore. Thus the PBT was down by 30% to Rs 5.22 crore.
• The taxation was lower by 21% to Rs 1.63 crore but the tax rate was higher at 31.2% compared to 27.7% in corresponding previous period. Thus the PAT was down by 33% to Rs 3.59 crore.

Standalone sales was down by 8% to Rs 34.25 crore as both domestic sales and export sales tank by about 4.5% and 15.6% respectively for the quarter. Hit by 730 bps crash in OPM to 15.6%, the operating profit was down by 37% to Rs 5.36 crore. After accounting for higher OI, nil interest and lower depreciation, the PBT was down by 19% to Rs 5.11 crore. With taxation stand lower by 29% to Rs 1.26 crore, the PAT was down by 14% to Rs 3.85 crore. With other comprehensive expense stand nil for the quarter as well as corresponding previous period), the net profit was down by 14% to Rs 3.85 crore.

On deducting standalone figures from consolidated figures, the sale of subsidiaries for the quarter was up by 10% to Rs 5.68 crore. With OPM expand by 430 bps to 28%, the operating profit jumped up by 29% to Rs 1.59 crore. Eventually the loss at PAT level was Rs 0.26 crore compared to a profit of Rs 0.88 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.