Revenue in Q4 increased sharply by 29% to Rs 17.23 crore, from Rs 13.39 crore in previous corresponding quarter.

Established in 1981, Frontier Springs started with the production of Leaf Springs and Laminated Bearing Springs for Automobiles and Railways. Steadily as the railways modernized, the company expanded to accommodate the high demand for Coil Springs for wagons, coaches, and locomotives for the Indian Railways and many more clients.

Quarter Performance

The OPM during the fourth quarter ended Mar 2018 dropped 30 bps to 14% due to increased other cost. Raw material cost (as a % to sales, net of stock) fell 500 bps to 42.1%. Other expenses (% of sales net of stock) rose 400 bps at 39.4%. Employee expenses rose 3bps to 3.68%.

Thus the operating profitrose 26% to Rs 2.41crore. Other income stood 38% higher at Rs 11 lakh. After 50% risein interest charges to Rs36 lakh and 26% rise in depreciation cost to Rs 58 lakh, the company's PBT rose 22% to Rs 1.58crore. After steady tax credit of Rs 14 lakh, net profit stood at Rs 1.72 crore, higher by 19%.

Full Year Performance:

Sales for FY17-18 rose 22% to Rs 59.48 crore.

The OPM during year ended March 2018 rose 340 bps to 13.8% due to decreased raw material and employee cost. Raw material cost (as a % to sales, net of stock) fell 510bps to 42.1%. Other expenses (% of sales net of stock) rose 91bps at 39.8%. Employee expenses fell 18bps to 3.67%.

Thus the operating profit rose 61% to Rs 8.2crore. Other income stood 67% higher at Rs 55 lakh. After 8% drop in interest charges to Rs1.32 crore and 17% rise in depreciation cost to Rs 1.94 crore, the company's PBT rose 137% to Rs 5.49 crore. After almost tenfold rise in tax provision to Rs 1.93 crore (2700 bps rise in tax rate), net profit stood at Rs 3.56 crore, higher by 67%.

Shares of Frontier Springs are currently trading around Rs 133 at BSE.