Financial figures for the quarter ended Sep 30, 2018 include the revenue from Salzer Magnet Wires, which was acquired on March 08, 2018. Hence figures for the quarter ended Sep 30, 2017 are not comparable to the extent with the figures for the quarter ended Sep 30, 2018.

• The value of production for the quarter was higher by 33% to Rs 134.09 crore and sales higher than value production for the quarter reflects liquidation of earlier period inventory. Sales for the corresponding previous period was lower than value of production of that period reflecting inventory built up.
  
• Operating profit margin contracted by 40 bps to 12.4%. Material cost (including PTG) as proportion to sales net of stocks was up by 70 bps to 73%. However the staff cost was down by 10 bps to 5.0%. And the OE was lower by 30 bps to 9.5%. Though staff cost and OE stood lower that is not good enough to fully offset the rise in material cost thus leading to lower OPM.
  
• Other income was down by 89% to Rs 0.15 crore. The interest cost was up by 37% to Rs 4.76 crore and depreciation was higher by 43% to Rs 3.27 crore. Thus the PBT was up by 4% to Rs 8.83 crore.
  
• Taxation in absolute terms was up by 20% to Rs 3.21 crore. But the tax rate stood higher at 36.3% compared to 31.5% in corresponding previous quarter. Thus hit by higher tax incidence, the PAT was lower by 3% to Rs 5.62 crore.

Half yearly performance

Sales was up by 27% to Rs 261.19 crore but with OPM expand by 30 bps to 11.7%, the operating profit was up by 31% to Rs 30.68 crore. Eventually the PAT was up by 3% to Rs 10.16 crore as hit by lower OI, higher interest and depreciation as well as higher tax incidence.

Financial figures for the half year ended Sep 30, 2018 include the revenue from Salzer Magnet Wires, which was acquired on March 08, 2018. Hence the figures for the half year ended Sep 30, 2017 are not comparable to the extent with the figures for the half year ended Sep 30, 2018.

Management comment

R Doraiswamy, Joint Managing Director of the company commenting on the results said, 'I am happy to share that this quarter once again, we have demonstrated good growth in our revenues, despite a challenging industry scenario domestically especially in the industrial switchgear market. This growth has been predominantly driven by increase in demand of our products under building and industrial switchgear segments. Our building segment has grown more than 190%yoy, as we have added new products in this segment and increased our retail presence in India. Our legacy products under industrial switchgear segments like rotary switches and toroidal transformers have continued to show robust growth. We have seen good demand and uptick in our other two new products namely three phased dry type transformers and wire harness. Our focus always remains on adding new high margin products, reach out newer geographies and offer customized solutions to our clients. We are constantly looking for new opportunities for technical associations/acquisition to strengthen our base of product offering."