On consolidated basis the revenue for the quarter grew by 63% (to Rs 19.18 crore) and its net profit was up by 10% to Rs 2.85 crore.

Standalone quarterly performance

Standalone sales including other operating income was higher by 43% to Rs 16.64 crore. The upside came from both super abrasives business as well as machines & components business. While the super abrasives business was higher by 56% to Rs 12.37 crore (or 75% of sales) the machines was higher by 17% to Rs 4.14 crore (or 25% of sales).

Despite strong growth in segment revenue of super abrasives the segment profit of the same grew by 38% (to Rs 3.28 crore) limited by erosion in segment margin by 340 bps to 26.5%. On the other hand the segment profit of machines & components rose by 84% to Rs 1.71 crore as the segment margin of it grew to 41.3% compared to 26.3% in corresponding previous period.

The other income was lower by 76% to Rs 33 lakh. Hit by lower other income the growth in PBIT moderated to 13% (to Rs 5.40 crore). Interest cost was nil and depreciation was higher by 23% to Rs 0.70 crore. Thus the PBT was higher by 12% to Rs 4.70 crore. The taxation was higher by 16% to Rs 1.40 crore. Thus limited the net profit was higher by 7% to Rs 3.10 crore.

Consolidated sales was higher by 63% to Rs 19.18 crore with the sales of super abrasives higher by 106% to Rs 16.74 crore and that of machines & components decline by 28% to Rs 2.61 crore. However with segment margin of super abrasives contract sharply to 18.2% compared to 32.1% in the corresponding previous period the segment profit of super abrasives was higher by just 16% to Rs 3.04 crore. The segment profit of machines & components was higher by 368% (to Rs 1.87 crore) with the in margin more than negate the fall in revenue.

After accounting for lower other income (down 64% to Rs 48 lakh), higher depreciation (up 29% to Rs 81 lakh) and taxation (up 25% to Rs 1.55 crore) the net profit was eventually higher by 10% to Rs 2.85 crore.

Annual performance

Standalone sales for the fiscal were higher by 9% to Rs 56.71 crore. The domestic turnover recorded an appreciable growth of 29% over the previous year. Exports to many countries continue to be lower than last year as these countries are still to come out of the recession. The operating profit was higher by 23% to Rs 15.56 crore as OPM expand by 310 bps to 27.4%. The net profit was finally higher by 11% to Rs 9.85 crore.

Consolidated sales for the fiscal were higher by 12% to Rs 63.01 crore. With 180 bps expansion in OPM the operating profit was higher by 20% to Rs 16.67 crore and the net profit was eventually higher by 7% to Rs 9.98 crore.

Other developments

To pay a dividend of Rs 25 /- per share ( 250% on face value of equity share of Rs 10/- each.) for FY 2010.

The Company continues to focus on new products development in line with its strategy of providing technically superior products to its customers. During the year, the Company has successfully introduced and tested several new products including Segmented wheels for refractory grinding, plated diamond wheels, PCD Notch milling tools, Steel bodies for glass grinding wheels and Brazed Diamond multipurpose Grinding wheels. The Company also successfully launched the following machines, CNC Surface Rotary Grinding WRS 600H Machine and CNC Guide Roll Grinder WGM20, CNC Notch Milling Machine to meet demand of growing steel rolling mills.

The company has also recently signed a technical collaboration agreement with Delapena of United Kingdom for manufacturing Honing machines .This would enable the Company to further strengthen its competitive edge by offering "Complete Honing Solutions" also along with grinding solutions .

The stock hovers around Rs 758.15