Quarterly performance

Sales was down by 65% to Rs 168.76 crore with continued weak end user demand for automotive further accentuated by COVID lockdown. Lower sales together with 460 bps fall in OPM to 7.6% has resulted in 78% fall in operating profit to Rs 12.79 crore. Sharp fall in OPM was largely due to higher staff and OE. As proportion to sales net of stocks the material cost was down by 410 bps to 63.3%. However the staff cost was up by 560 bps to 12.3% and the OE was up by 350 bps to 15.9% there by more than offsetting the gain in material cost.

The other income was up by 424% to Rs 2.46 crore and thus the PBIDT was down by 74% to Rs 15.26 crore. The interest cost was up at Rs 0.45 crore from mere Rs 0.01 crore in the corresponding previous period. The depreciation was down by 103% to Rs9.63 crore. Thus the PBT was down by 89% to Rs5.18 crore. Taxation was a write back of Rs 0.57 crore compared to a provision of Rs 19.03 crore in the corresponding previous period. Thus the PAT was down by 81% to Rs 5.75 crore.

Yearly performance

Sales was down by 51% to Rs951.96 crore hit by subdued demand for M&HCV in domestic market. The operating profit margin for the period eroded by 200 bps to 9.8% and that along with lower sales resulted in 59% fall in OP to Rs93.28 crore. The PBT was down by 67% to Rs61.98 crore after accounting for higher other income, higher interest and depreciation as % of sales.

With EO expense being Rs 2.02 crore against nil in the corresponding previous period, the PBT after EO was down by 68% to Rs59.96 crore. With taxation down by 70% to Rs 18.82 crore, the PAT was eventually lower by 66% to Rs41.14 crore.