• EBIT for the quarter was up by 14% to Rs 264.09 crore with upside coming largely from electro mechanical projects (EMP). The segment profit of Unitary cooling products was down by 13% to Rs 149.25 crore hit by higher base (pre GST buy) as well as weak summer peak season this year affecting both room air conditioner and air cooler off take. However with the company focus on profitable orders, the segment profit of EMP jumped up by 150% to Rs 88.08 crore with its segment margin expand by 480 bps to 10.2%. The segment profit of engineering products & services was up by modest 4% to Rs 26.76 crore with its margin expand by 620 bps to 34.7
• OPM expanded by 60 bps to 11.3% and that is largely due to higher cost of traded goods. Material cost as proportion to sales net of stocks and excise/GST was down by 580 bps to 41.9%. Similarly the staff cost and other expenses were down by 200 bps (to 5.8%) and 210 bps (to 8.1%). However that of cost of traded goods jumped up by 1110 bps to 34.3%. Thus facilitated by higher sales and expansion in OPM, the operating profit was up by 17% to Rs 243.19 crore.

• Other income was lower by 52% to Rs 28.21 crore. However the interest was lower by 23% to Rs 2.73 crore and depreciation was lower by 3% to Rs 5.94 crore. Thus hit by lower other income, the PBT was up by 2% to Rs 262.73 crore. Share of profit from JV was lower by 475 to Rs 0.50 crore. Thus the PBT after share of profit from JV was up by 2% to Rs 263.23 crore. EO income was down by 100% to nil. Thus the PBT after EO was up by just 1% to Rs 263.23 crore.

• Taxation in absolute term was up by 5% to Rs 76.17 crore and the effective tax rate for the quarter was also stood marginally higher at 28.9% compared to 28.1% in the corresponding previous period. Thus the PAT was eventually flat at Rs 187.06 crore.

The Group has aligned its policy of revenue recognition with Ind AS 115 "Revenue from Contracts with Customers" which is effective from 1st April, 2018. The application of Ind AS 115 has impacted the group's accounting of expected credit losses on contract assets and identification of performance obligation on certain transactions. As permitted under the standard, the Group has adopted modified retrospective approach and debited the retained earnings at 1st April, 2018 by Rs 130.89 crore, net of tax effect. The application of Ind AS 115 did not have any significant impact on the financial results and EPS for the quarter ended 30th June, 2018.