Orient Refractories net sales rose 26% to Rs 186.7 crore for quarter ended September 2018 compared to corresponding previous year period. The company operating margins fell 290 bps to 16.8%. As a result operating was up 7% to Rs 31.37 crore.
Cost of material consumed as a percentage of net sales (net of stock adjustment) rose 300 bps to 41.8% while purchase of stock in trade rose 450 bps to 19.9%. Employee benefit expenses decreased 130 bps to 6.7% and other expense decreased 140 bps to 15.9%.
Other income of the company rose 67% to Rs 5.08 crore. Interest cost nil. Depreciation rose 24% to Rs 2.16 crore. PBT as a result rose 12% to Rs 34.29 crore. The effective tax rate rose to 34.8% compared to 34.2% owing to which the company's PAT increased 11% to Rs 22.36 crore.
Half Year ended Performance
For half year ended September 2018, net sales rose 24% to Rs 360.79 crore compared to corresponding previous year. The company operating margins fell 170 bps to 16.6%. As a result operating was up 13% to Rs 59.91 crore.
Cost of material consumed as a percentage of net sales (net of stock adjustment) was up 320 bps to 41.7% while purchase of stock in trade rose 190 bps at 18.7%. Employee benefit expenses decreased 120 bps to 7.2% and other expense decreased 110 bps to 16.4.
Other income of the company rose 109% to Rs 11.6 crore. Interest cost was nil. Depreciation rose 22% to Rs 4.14 crore. PBT as a result rose 22% to Rs 67.37 crore. The effective tax rate rose to 34.3% compared to 34.1% owing to which the company's PAT increased 22% to Rs 44.27 crore.
The scrip is currently trading at Rs 220
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