• Strong growth in revenue was partly due to weak base of corresponding previous period. The corresponding previous period demand for air-conditioners and air coolers was impacted by weak summer demand compared to good summer in current fiscal. The segment revenue of Unitary Cooling Products for comfort & customer use (UCP) was up by 47% to Rs 1748.78 crore. However the segment revenue of Electro Mechanical Projects (EMP) business was down by 5% to Rs 824.12 crore and that of Engineering Product & Services (EPS) business was down by 4% to Rs 73.96 crore.
• Segment margin of EMP was down by 220 bps to 8%. Similarly the segment margin of EPS was down by 230 bps to 32.4%. However the segment margin of UCP was up by 60 bps to 13.1%.
• EBIT was up by 21% to Rs 319.25 crore as the segment profit of both EMP and EPS stood lower. The segment profit of EPS was down by 11% to Rs 23.94 crore hit by lower sales and lower margin. Similarly hit by lower sales and lower margin the segment profit of EMP was down by 26% to Rs 65.56 crore. However gained by higher sales and higher margin, the segment profit of UCP was up by 54% to Rs 229.75 crore.

Yearly performance

Consolidated sales was higher by 11% to Rs 7124.07 crore and that with 170 bps contraction in OPM to 8.6%, the operating profit was down by 8% to Rs 611.71 crore. After accounting for higher other income, higher interest & depreciation cost as proportion of operating profit, the PBT (before profit from associate and EO) was down by 7% to Rs 741.00 crore. The share of loss from associate was higher at Rs 51.82 crore against a profit of Rs 3.80 crore in the corresponding previous period. Thus the PBT before EO was down by 14% to Rs 689.18 crore. Further, with EO expense stand higher at Rs 11.77 crore against a profit of Rs 0.61 crore, the PBT after EO was down by 16% to Rs 677.41 crore. With taxation stand lower by 28% to RS 163.53 crore, the fall at PAT level moderated and stood down by 11% to Rs 513.88 crore. After accounting for higher minority interest (up 9% to Rs 5.97 crore) and Rs 189.49 crore swing in other comprehensive income to an expense of Rs 26.38 crore, the total comprehensive income was down by 35% to Rs 481.53 crore.

EMP business registered 50% growth in segment profit to Rs 277.25 crore gained by higher sales (up 27% to Rs 3619.08 crore) and higher margin (120 bps expansion to 7.7%). Similarly the segment profit of EPS business was up by 6% to Rs 105.08 crore gained by marginal increase in sales (up 1% to Rs 311.65 crore) and 170 bps expansion in segment margin to 33.7%. However the segment profit of UCP was down by sharp 31% to Rs 325.36 crore, hit by both lower sales (down 2% to Rs 3155.56 crore) and lower segment margin (down 440 bps to 10.3%).

EMP order book

Carry forward order book of the EMP segment stood at Rs 4756 crore compared to Rs 4623 crore as end of corresponding previous period.