Other income grew 159% to Rs 4.98 crore and interest cost grew 84% to 2.24 crore. As depreciation was down 9% to Rs 2.33 crore PBT grew 25% to Rs 10.30 crore. Provision for tax grew 29% to Rs 3.56 crore after which PAT went up 23% to Rs 6.74 crore.

During the quarter the company has received Rs 97 lakh against the insurance claim filed by the company in the previous FY, which is included in other income.

Six months results

For the six months, Ador Welding registered 9% rise in sales to Rs 227.97 crore. OPM improved 260 basis points to 7.6% which saw OP rise 65% to Rs 17.41 crore.

Other income grew 47% to Rs 7.21 crore and interest cost grew 84% to 3.87 crore.

As depreciation was down 9% to Rs 4.73 crore PBT grew 96% to Rs 16.02 crore. Provision for tax grew 88% to Rs 5.15 crore after which PAT went up 101% to Rs 10.87 crore.

FY 2018 results

For FY 2018, Ador Welding registered an 4% rise in sales to Rs 457.74 crore. OPM improved 60 basis points to 7.4% which saw OP grow 13% to Rs 33.92 crore.

PBT grew 4% to Rs 28.25 crore. PAT increased 2% to Rs 18.56 crore.

Segment results

For the quarter, sales of from the Consumables Division grew 20% to Rs 95.49 crore and accounted for 76% of total. PBIT from the same grew 35% to Rs 14.86 crore and accounted for 99% of total.

For the quarter, sales from the Equipment and Project Engineering Division fell 30% to Rs 29.85 crore and accounted for 24% of total. PBIT fell 69% to Rs 8 lakh and accounted for 1% of total.

For the six months, sales of from the Consumables Division grew 27% to Rs 170.73 crore and accounted for 75% of total. PBIT from the same grew 74% to Rs 26.35 crore and accounted for 103% of total.

For the six months, sales from the Equipment and Project Engineering Division fell 29% to Rs 57.24 crore and accounted for 25% of total. PBIT loss fell 48% to Rs 79 lakh and accounted for -3% of total.

Focusing on new products

During FY 2017-18, it launched new products in welding and cutting segment & also in WAPS and Project Engineering Business to meet with customer requirements.

In FY 2018 it delivered higher volumes in consumables and equipment which further strengthened its industrial leadership. Automation business performed exceptionally well owing primarily due to the launch of new products during the year.

During FY 2018, for the first time, it ventured into an EPC project outside India, in Kuwait, related to Oil & Gas industry, which will be completed by August 2018.

It to aims to become "best-in-class" enterprise known for continuous innovation in products & solutions with significant growth by FY 2019-20, notwithstanding the economic or market scenario.

Valuation

The stock trades at Rs 380