The company has acquired 51% of equity share capital in Hindustan Steelworks (HSCL) w.e.f. April 1, 2017. However due to IR issues, strike by the contractual employees and also not allowing access to finance records, the accounts of HSCL could not be prepared for the quarter ended Sep 2018. Hence the consolidated results for the period do not include the results in respect of HSCL for the quarter. So the figures are not comparable.  

• Operational revenue (excluding other operating income) was higher by 4% to Rs 1366.41 crore with upside coming from both Project Management Consultancy (PMC) division and real estate. While the revenue of PMC was up by 12% to Rs 1307.71 crore (or 96% of sales) that of real estate was up by 135% to Rs 34.26 crore (or 3% of sales). The revenue of EPC business was down by 82% to Rs 24.43 crore.

• Expansion in OPM to the extent of 330 bps was largely on account of change in accounting policy (adoption of Ind AS 115) as well as revenue mix. The company could not recognize certain fee income as revenue under IndAS 115 unlike earlier accounting standards. This hit the operating profit margin. Reflecting this, the work and consultancy expenses as % of sales was up by 530 bps to 89%. Similarly the provision of expected credit loss was 10 bps to 1.7%. However the material cost, staff and other expenses as a proportion to sales was down by 10 bps, 170 bps and 60 bps respectively to 0%, 5% and 0.9%

• Other income was higher by 68% to Rs 59.43 crore and thus the de-growth at PBIDT moderated at 13% to Rs 105.05 crore. The interest cost was a write back of Rs 0.89 crore compared to an expense of Rs 7.02 crore. Thus the PBDT was down by 7% to Rs 105.94 crore. With depreciation stand lower by 96% to Rs 0.05 crore, the PBT before share of profit from JV was down by 6% to Rs 106.10 crore. The share of profit from JV was Rs 0.22 crore, a growth of 35%. Thus the PBT was down by 6% to Rs 106.10 crore.

• EO Expense for the period and correspodngin previous period was nil. Thus with taxation was up by 2% to Rs 41.18 crore and thus the PAT was down by 10% to Rs 72.76 crore. Minority interest was a share of loss of Rs 3.48 crore compared to a share of profit of Rs 2.64 crore in the corresponding previous period. Thus gained by lower minority interest the PAT after MI was down by 3% to Rs 76.25 crore. The other comprehensive expense was Rs 0.62 crore compared to an income of Rs 0.07 crore in the corresponding previous period. Thus the total comprehensive income was eventually down by 4% to Rs 75.63 crore.  

Half yearly performance

Consolidated sale for the period was Rs 3259.82 crore and with 290 bps contraction in OPM, the operating profit was down by 27% to Rs 113.27 crore. Gained by higher OI as well as lower interest and depreciation as % of operating profit, the PBT before share of profit from JV was up by 4% to Rs 215.51 crore. The share of profit from JV was up by 180% to Rs 0.41 crore and the PBT after JV profit was up by 4% to Rs 215.92 crore. The taxation was up by 8% to Rs 82.23 crore and thus the PAT was restricted at Rs 149.41 crore, a growth of just 1%.

After accounting for lower minority interest the PAT after MI was up by 6% to Rs 149.45 crore. With other comprehensive expense stand at Rs 1.67 crore compared to an income of Rs 0.11 crore in the corresponding preivous period, the net profit was up by 5% to Rs 147.77 crore.

The company has acquired 51% of equity share capital in Hindustan Steelworks (HSCL) w.e.f. April 1, 2017. However due to IR issues, strike by the contractual employees and also not allowing access to finance records, the accounts of HSCL could not be prepared for the half year ended Sep 2018. Hence the consolidated results for the period do not include the results in respect of HSCL for the half year. So the figures are not comparable.