Quarter results

In quarter ended June 2019, sales fell 12% to Rs 205.38 crore.

OPM fell 230 basis points to 13.3% which saw OP fall 25% to Rs 27.36 crore.

Other income fell 6% to Rs 3.62 crore and interest cost was NIL against Rs 8 lakh. As depreciation remained at Rs 4.76 crore, PBT went down 26% to Rs 26.22 crore. As tax fell 26% to Rs 9.30 crore, (tax incidence grew from 35.3% to 35.5%), PAT fell 27% to Rs 16.92 crore.

FY 2019 results

In FY 2019, sales grew 13% to Rs 871.74 crore.

OPM fell 70 basis points to 15.1% which saw OP rise 8% to Rs 131.65 crore.

Other income fell 19% to Rs 15.38 crore and interest cost fell 91% to Rs 9 lakh. As depreciation grew 16% to Rs 19.54 crore, PBT grew 4% to Rs 127.40 crore. As tax grew 6% to Rs 44.98 crore, (tax incidence grew from 34.7% to 35.%), PAT grew 3% to Rs 82.42 crore.

Subdued tractor industry impacted performance

As the domestic tractor industry remained subdued in first quarter of current fiscal and registered a decline over corresponding quarter of last year, the company's engine sale for the quarter ended June, 2019 got impacted and stood at 23,033 units as compared to 26,742 units - a degrowth of 13.9%.

Valuation

The stock trades at Rs 1068.