• Value of production for the quarter was down by 38% to Rs 199.30 crore while the revenue for the period was down by 27% to Rs 218.90 crore. Sales for the period and corresponding previous period was 1.1 time and 0.94 times of respective value of production. Sale higher than value of production for the period reflects liquidation of earlier period inventory.
  
• Downside in revenue was largely as both pumps and valves register lower sales. Sales of pumps was down by 24% to Rs 189.20 crore (or 83% of sales) and that of valves was down by 46% to Rs 29.90 crore (or 13% of sales). The others was down by 64% to Rs 8.50 crore.
  
• PBIT was down by 66% to Rs 8.70 crore and the downside was largely due to pumps. The segment profit of pumps was down by sharp 58% to Rs 9.30 crore hurt by lower sales and 400 bps contraction in segment margin to 4.9%. The vales segment registered a segment loss of Rs 0.50 crore compared to a profit of Rs 3.40 crore in the corresponding previous period hit by lower sales and its segment margin turn negative 1.7% (against 6.1%). The segment loss of others was Rs 0.10 crore.

Half Yearly performance

Sales was down by 19% to Rs 475.90 crore. But with OPM contract by 400 bps to 6.6%, the operating profit was down by 50% to Rs 31.60 crore. After accounting for higher other income, lower interest and lower depreciation, the PBT was down by 41% to Rs 29.80 crore. EO was nil for the period compared to RS 12.70 crore in the corresponding previous period. Thus the PBT after EO was down by 53% to Rs 29.80 crore. With taxation stand lower by 47% to Rs 11.90 crore the PAT was down by 56% to Rs 17.90 crore.

With SOP from associates was down by 14% to Rs 1.20 crore, the net profit was down by 55% to Rs 19.10 crore.

In accordance with the recent amendments in sections 10(34) and 115-O of the Income-tax Act, 1961, Dividend Distribution Tax (DDT) would not be payable by companies in respect of dividends declared, distributed or paid after March 31, 2020 and similarly tax exemption under section 10(34) to recipient is withdrawn with effect from April 1, 2020. Accordingly, the Group has remeasured the deferred tax liability on unremitted earnings of associate considering tax rate applicable to Group and the impact of Rs. 5.07 crore has been recognised in tax expense for the quarter ended March 31 2020.