• Sales net of GST/excise was down by 3% to Rs 31.12 crore and the downside are largely due to lower domestic sales, which were down by 14% to Rs 20.9 crore. The export sales were up by strong 28% to Rs 10.24 core to some extent compensating for the lower domestic sales. Lower domestic sales were largely due to weak demand from steel, auto ancillaries, engineering, trading etc. While strong export sales was largely due to higher off take from countries such as Russia, Singapore, Thailand, Indonesia, USA, UK, China, UAE, Taiwan & Korea.
• OPM expanded by strong 180 bps largely due to lower material and other expenses. The staff cost as proportion to sales net of stocks was up by 310 bps to 20.4%. But with material cost down by 370 bps to 29.3% and the other expenses down by 180 bps to 31.5%, the increase in staff cost was more than offset leading to OPM expansion. OPM expansion was largely due to product mix and cost rationalization measures introduced during the quarter.
• The other income was down by 20% to Rs 0.24 crore and this has moderated the growth at PBIDT to 5% (to Rs 6.14 crore). The interest was down by 100% to nil from Rs 0.12 crore in corresponding previous period. And the depreciation stands higher by 1% to Rs 2.51 crore. Thus the PBT was up by 13% to Rs 3.63 crore.
• The current tax was down by 10% to Rs 0.93 crore and the tax rate was down at 25.6% compared to 32% in corresponding previous period. Thus the PAT was up by 23% to Rs 2.70 crore.

Consolidated sales net of GST/excise was flat at Rs 36.19 crore. Facilitated by 180 bps expansion in OPM, the operating profit was up by 11% to Rs 6.75 crore. After accounting for lower OI, lower interest and flat depreciation, the PBT was up by 20% to Rs 4.45 crore. With taxation stand lower by 1% to Rs 1.15 crore, the PAT was up by 29% to Rs 3.30 crore. With other operating income stand higher at Rs 0.18 crore compared to an expense of Rs 0.28 crore, the net profit jumped up by 53% to Rs 3.48 crore.

Nine month performance

Standalone sale for the period was down by 2% to Rs 92.65 crore and with OPM down by 210 bps to 15.3% the operating profit was down by 14% to Rs 14.18 crore. The PAT was eventually lower by 17% to Rs 6.58 crore.

Consolidated sale for the period was down by 2% to Rs 106.30 crore and with 160 bps contraction in OPM the operating profit was down by 11% to Rs 17.30 crore. Eventually the PAT was down by 13% to Rs 8.23 crore.

Interim Dividend

The company to pay an interim dividend of Rs 10 per share of Rs 10 face value for fiscal 2017-18.

The stock hovers around Rs 3331.10.