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Leading supplier of metallurgical chemicals - Foseco India achieved flat 4% growth in net profit to Rs 5.98 crore in June 2012 quarter on poor operating performance and halving of other income. The topline grew by 13% to Rs 63.62 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 13% to Rs 63.62 crore in June 2012 quarter. Hike in cost of traded goods pulled down the OPM by 80 bps to 15.3% thereby limiting the growth of operating profit to 8% to Rs 9.76 crore. Traded goods cost, as % to sales net stock adjusted, surged by 180 bps to 4%. Also the other expenditure and staff cost grew by 10 bps each to 17% and 9% respectively. Only the raw material cost fell by 140 bps to 55%.
The PBT growth was limited to 3% to Rs 8.87 crore on halving of other income. The other income crashed by notable 55% to Rs 0.26 crore. The depreciation cost grew by 6% to Rs 1.10 crore while the interest cost increased by 69% to Rs 0.05 crore. The net profit settled with flat 4% growth to Rs 5.98 crore post accounting 70 bps lower effective tax rate.
Half Year Performance
In half year ended June 2012, the topline grew by 13% to Rs 126.67 crore. The OPM increased by 20 bps to 16.4% on lower raw material and other expenditure. Thus the operating profit grew by 14% to Rs 20.79 crore. Crash in other income by 45% limited the PBT growth to 12% to Rs 19.03 crore. However fall in tax rate by 120 bps lifted the net profit by 14% to Rs 12.90 crore.
- The Board of Directors of the Company has declared second interim dividend of Rs 4 per equity share. Therefore, including the first interim dividend, the cumulative interim dividend declared for CY 2012 is Rs 5 per equity share.
- The promoters' share in the total shareholding remains unchanged at 75% in June 12 quarter. The promoters' have pledged ‘nil' shares of the company.
The scrip closed at Rs 641.10 on BSE on 18th July 2012
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