• Sales for the period was up by modest 1% Rs 113.14 crore. But the value of production (VOP) for the period was down by 4% to Rs 111.45 crore. Sales was about 1.02 times of its VOP and in corresponding previous period the sales was 0.96 times of its VOP. Sales higher than VOP is reflective of liquidation of earlier period inventory.
• OPM expanded by 120 bps to 10.2% and that is largely due to lower material cost, which more than offset the rise in all other cost heads. The material cost was down by 560 bps to 76.8%. The staff cost was up by 150 bps to 5.8% and the OE was up by 240 bps to 7.1%.

Nine-month performance

Sales was up by 7% to Rs 323.48 crore and the OPM was up by 70 bps to 10.1%. Thus facilitated by higher sales and higher OPM, the operating profit was up by 15% to Rs 32.67 crore. The PBT was up by 27% to Rs 9.82 crore after accounting for lower sales, higher interest and higher depreciation.The PAT was eventually higher by 17% to Rs 5.92 crore after accounting for 47% increase in taxation to Rs 3.90 crore.

Other developments

The company in Jan 2020 announced that it now enlisted with a Japanese Engineering Consultancy & Contracting major for their Indian subsidiary.This approval enables the company to participate in future bids for supplying qualified products i.e. Instrument Signal Cables, Instrument Thermocouple Cable, Foundation Fieldbus Cables, Fire Alarm Cables and Telecommunication Cables. This enlistment is valid till 31-December-2022 and is subject to review, based on performance.

The company on Jan 31, 2020 announced of it been awarded a prestigious order estimated at approximately Rs 22 crores (gross of GST) from an Indian arm of a Taiwan based Engineering, Procurement and Construction services major. The order is for the supply of Instrument Cables & Wires to an LNG Project in the state of Odisha and is scheduled to be executed by April 30, 2020.