On standalone basis, the net sales grew by healthy 42% to Rs 20.94 crore. Fall in OPM by 20 bps to 30.4% constrained the operating profit growth to 41% to Rs 6.36 crore. The standalone net profit grew by robust 49% to Rs 4.05 crore.

Wendt India, a joint venture between Murugappa Group of India and Wendt Gmbh of Germany and manufacturers of world renowned range of Diamond / CBN grinding tools and machines for cutting tools and wire rod mills, as well as a comprehensive range of diamond / CBN products that cater to virtually every segment of the engineering industry

Quarterly Performance

The company's consolidated topline grew by robust 47% to Rs 23.24 crore in Sep 2010 quarter backed by both super abrasives sales and machines, accessories and component (machine segment) sales. The super abrasive sales grew by 32% to Rs 16.97 crore while the machine sales rose by whopping 115% to Rs 5.97 crore. Increase in operating profit margin (OPM) by 170 bps to 32.1% lifted the operating profit by impressive 55%to Rs 7.47 crore. In terms of cost, as % to sales net stock adjusted, raw material cost grew by 60 bps to 25% while the purchase of traded goods rose by 30 bps to 4%. On the other hand, the other expenditure and staff cost fell by 30 bps to 25% and 260 bps to 14% respectively.

Segmentwise, the PBIT margin of abrasives declined by 370 bps to 29% limiting the growth in its PBIT to 17% to Rs 4.89 crore. On the other hand, spurt in PBIT margin of machine segment by outstanding 2490 bps to 36% boosted its PBIT by whopping 610% to Rs 2.13 crore.

The company's PBT grew by impressive 61% to Rs 6.77 crore on marginal growth in depreciation cost by 15% to Rs 0.90 crore. Further fall in effective tax rate by 100 bps lifted the net profit by impressive 64% to Rs 4.52 crore.

On standalone basis, the net sales grew by healthy 42% to Rs 20.94 crore. Fall in OPM by 20 bps to 30.4% constrained the operating profit growth to 41% to Rs 6.36 crore. The standalone net profit grew by robust 49% to Rs 4.05 crore.

Half Year Performance

In half year ended Sep 2010, the company's consolidated operating income grew by impressive 60% to Rs 43.04 crore on growth across both segments especially machine. Increase in OPM by 500 bps to 31% boosted the operating profit by whopping 91% to Rs 13.33 crore. Marginal growth in depreciation cost by 20% and fall in effective tax rate by 120 bps lifted the net profit by whopping 112% to Rs 8.07 crore.

On standalone basis, the operating income grew by robust 55% to Rs 38.24 crore in H1 FY11. Increase in OPM by 480 bps boosted the operating profit by impressive 84% to Rs 11.55 crore. The standalone net profit settled with significant 101% growth to Rs 7.28 crore.

The promoters' shareholding stood unchanged at 80% for the quarter ended Sep 10. None of the shares' held by promoters are pledged.

The Scrip is hovering at Rs 1027 on BSE.