• Value of production for the quarter was up by 42% (to Rs 44.80 crore) even as the revenue net of excise was up by 33% to Rs 41.66 crore. Sales for the quarter is marginally lower than value of production thereby reflecting inventory built up. And this could get diluted or delivery happens going forward.

• Operating profit margin for the quarter contracted by strong 450 bps to 13.1%. Contraction in OPM can be attributed to rise in all cost heads barring staff cost. Material cost as proportion to sales net of stocks was higher by 430 bps to 55.9%. And that of OE was up by 280 bps to 23.8%. However the staff cost was down by 190 bps (to 8.1%). Thus hit by lower OPM, the operating profit was flat at Rs 5.47 crore largely facilitated by higher sales.

• Other income was up by 98% to Rs 1.14 crore. The interest cost was down by 1% to Rs 0.72 crore. And the depreciation cost was up by 2% to Rs 1.16 crore. While the interest as proportion to operating profit stood lower at 13.1% (compared to 13.3%) that of deprecation was higher at 21.3% compared to 20.9% in corresponding previous period. Thus the PBT before EO were up by 13% to Rs 4.73 crore.

• EO income was Rs 0.01 crore compared to an expense of Rs 0.97 crore in the corresponding previous period. Thus on deflated base, the PBT after EO were up by 47% to Rs 4.73 crore.

• The taxation was down by 1% to Rs 1.67 crore in absolute terms. But the tax rate was lower at 35.3% compared to 52.3% in corresponding previous period. Thus spurred the PAT was up by 99% to Rs 3.07 crore.

Nine month performance

Sales were higher by 33% to Rs 116.58 crore. Higher sales together with 20 bps expansion in operating profit margin to 16%, facilitated 35% growth in operating profit to Rs 18.66 crore. After accounting for higher other income, higher interest and depreciation cost, the growth at PBT before EO was strong 54% to Rs 15.04 crore. EO for the period was Rs 0.01 crore compared to an expense of Rs 1.05 crore in the corresponding previous period and thus on deflated base, the PBT after EO jumped up by 73% to Rs 15.05 crore. Eventually the PAT was up by 89% to Rs 10.34 crore with tax rate stand lower at 31.3% compared to 37.3% in corresponding previous period.