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In the quarter ended Sep 2011, Foseco India's net profit grew by robust 41% to Rs 7.30 crore on impressive operating performance, fall in effective tax rate and supportive non operating front. The topline grew by 19% to Rs 60.59 crore. Overall operating efficiency boosted the operating profit margin (OPM) by whopping 270 bps. Thus the operating profit grew by notable 39% to Rs 11.58 crore.
Foseco India is the leading supplier of metallurgical chemicals for the ferrous and non-ferrous foundry industry. Parent Foseco Plc, listed on the London Stock Exchange, has been associated with the metal industry for over 75 years and is acknowledged as a world leader in the supply of consumable products for use in the foundry industry with presence in 32 countries and major facilities in Germany, the US, the UK, Brazil, China, India, South Korea, and Japan
Quarter Performance
The operating income grew by healthy 19% to Rs 60.59 crore in Sep 2011 quarter. The OPM increased by whopping 270 bps to 19.1% aided by overall operating efficiency especially fall in raw material costs and healthy topline. The raw material cost, as % to sales net stock adjusted, crashed by 110 bps to 54%. Also the other expenditure and purchase of traded goods fell by 40 bps to 16% and 160 bps to 2% respectively. The staff cost declined by 10 bps to 9%.
The PBT improved by robust 39% to Rs 10.80 crore aided by fall interest cost and marginal depreciation cost. The depreciation cost grew by 20% to Rs 1.07 crore while the interest cost crashed by 40% to Rs 0.04 crore. Only the other income fell by 16% to Rs 0.32 crore. Fall in effective tax rate by 80 bps lifted the net profit by robust 41% to Rs 7.30 crore.
Nine Month Performance
In nine month ended Sep 2011, the topline grew by 29% to Rs 172.64 crore. Growth in OPM by 50 bps to 17.2% boosted the operating profit by healthy 34% to Rs 29.77 crore. Fall in other income was offset by marginal depreciation cost that led to 34% growth in PBT to Rs 27.83 crore. On accounting tax provision, the net profit settled with healthy 34% growth to Rs 18.65 crore.
The Board of Directors of the Company has declared third interim dividend of Rs 5 per equity share of Rs 10. Cumulatively, it has declared interim dividend of Rs.11/- per equity share of Rs.10 for CY 11.
The promoters' share in the total shareholding remains unchanged at 75% in Sep 11 quarter. The promoters' have pledged ‘nil' shares of the company.
The scrip closed at Rs 528.85 on BSE on 21st Oct 2011.
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