• Sharp fall in sales was down by 43% to Rs 116.99 crore driven by both volume as well as realisation. Sales volume for the quarter was down by 40% to 13756 units and the realization was down by 5% to Rs 85047/unit. Lower volume was largely due to COVID pandemic lockdown which forced shut down of tractor units apart from production units of the company especially in entire April 2020.

• OPM contracted by 230 bps to 13.4% largely due to higher staff cost. The material cost as proportion of sales net of stocks was up by 10 bps to 76.3% and that of staff cost was up by 260 bps to 7.7%. However the OE was up by 40 bps to 5.4%. Thus hit by lower sales and lower margin, the OP was down by 53% to Rs 12.88 crore.

• With OI stand lower by 43% to Rs 2.06 crore, the de-growth at PBIDT was 52% to Rs 14.94 crore. And with interest cost nil for the quarter as well ascorresponding previous period, the depreciation was lower by 11% to Rs 4.23 crore. After accounting for lower other income and lower depreciation, the PBT was down by 59% to Rs 10.71 crore.

• With taxation (net of deferred tax) for the period down by sharp 69% to Rs 2.87 crore the fall at PAT was 54% to Rs 7.84 crore.

Yearly performance

Salesfor the period was down by 11% to Rs 773.30 crore. But with OPM contract by 210 bps that together with lower sales resulted in 24% fall in operating profit to Rs 100.43 crore. The other income was down by 17% to Rs 12.78 crore and thus the PBIDT was down by 23% to Rs 113.21 crore. With interest stand lower by 89% to Rs 0.01 crore and depreciation up by 3% to Rs 20.13 crore, the PBT was down by 27% to Rs 93.07 crore. With taxation down by 51% to Rs 22.03 crore, the fall at net profit was eventually restricted at 14% to Rs 71.04 crore.

Company reached near 100% capacity utilization in the month of June 2020

To contain the spread of COVID-19, the Government of India instituted nationwide lockdown from 25th March, 2020, which was then extended on multiple occasions and the reopening of the economy had begun in May 2020 by allowing resumption of services and businesses in a phased manner. This has adversely impacted business segments partially in Q1FY21 as well.

Following the Govt.'s guidelines, the Company resumed its operations from 5th May, 2020 with all safety protocols. Initially it took some time to smoothen the operations and to establish the supply chain from across India, the activity level was then increased gradually. The Company was able to reach close to 100% of its capacity utilization in the month of June 2020.