Raw material cost grew 2% to Rs 131.80 crore and as a % to sales it fell from 52.7% to 50.8%. Employee Cost fell 16% to Rs 9.91 crore and as a % to sales it fell from 4.8% to 3.8%.

Other income jumped 111% to Rs 5.56 crore. Interest cost was nil. As deprecation fell 53% to Rs 1.83 crore, PBT grew 92% to Rs 46.20 crore.

EO loss was Rs 24.49 crore against a gain of Rs 42.94 crore. Thus PBT after EO fell 68% to Rs 21.71 crore.

EO loss for the quarter includes provision for loss on investment in subsidiary.

Provision for taxation fell 32% to Rs 16.19 crore. Finally PAT fell 87% to Rs 5.52 crore.

FY 2016 results

Sales for FY 2016 grew 3% to Rs 986.27 crore. OPM jumped 500 basis points from 9.1% to 14.1% which saw OP rise 59% to Rs 139.20 crore.

Raw material cost fell 16% to Rs 512.82 crore and as a % to sales it fell from 63.9% to 62.0%.

Other income jumped 78% to Rs 23.39 crore. Interest cost was nil. As deprecation fell 3% to Rs 7.24 crore, PBT grew 67% to Rs 155.35 crore.

EO loss was Rs 24.49 crore against a gain of Rs 150.33 crore. Thus PBT after EO fell 46% to Rs 130.86 crore.

EO loss for the quarter and FY 2016 includes provision for loss on investment in subsidiary.

Provision for taxation fell 26% to Rs 53.17 crore. Finally PAT went down 55% to Rs 77.69 crore.

Consolidated FY 2016 results

Consolidated sales for FY 2016 grew 2% to Rs 1056.45 crore. OPM jumped 520 basis points from 7.7% to 12.9% which saw OP rise 70% to Rs 136.37 crore.

Other income jumped 72% to Rs 22.84 crore. Interest fell 58% to Rs 23 lakh. As deprecation grew 17% to Rs 13.04 crore, PBT grew 78% to Rs 145.94 crore. EO gains were NIL against Rs 150.33 crore. Thus PBT after EO fell 37% to Rs 145.94 crore. Provision for taxation fell 25% to Rs 55.53 crore after which PAT went down 43% to Rs 90.41 crore.

The consolidated results include results of wholly owned subsidiaries – Veedol International limited, Veedol International DMCC and Veedol International BV. It also includes results of step down subsidiaries Veedol Deutschland GmbH and Veedol International Americas Inc. and also results of the two JV companies viz. JX Nippon, TWO Lubricants India private limited.

Valuation

The diminution of value of investment of Rs 41 lakh held by the company is not of permanent nature and accordingly no provision has been made.

The directors have recommended final dividend of Rs 87.50 per share.

The share price trades at Rs 5890.