Today, ESAB India has established itself as one of the leading suppliers of welding and cutting products in the country. ESAB products are now an integral part of industries like Shipbuilding, Petrochemical, Construction, Transport, Offshore, Energy and Repair and Maintenance.

ESAB India's initiative on Total Quality Management has resulted in ISO 9000 and ISO 14000 certifications for four of its principal manufacturing facilities located at Kolkata, Chennai and Nagpur. Further, the skills, know-how and resources at its Research and Development Departments, have helped the company to offer a wide range of world-class products for diverse applications, cost effectively.

For the quarter ended June 2019, sales grew 6% to Rs 181.26 crore. OPM improved 110 basis points to 14.1% which saw OP rise 15% to Rs 25.50 crore.

Other income fell 14% to Rs 3.46 crore and depreciation went up 29% to Rs 3.26 crore.

Thus PBT grew 8% to Rs 25.61 crore.

EO loss was NIL against Rs 68 lakh. Thus PBT after EO grew 11% to Rs 25.61 crore.

Tax provision was higher by 16% to Rs 8.88 crore. Thus net profit went up 9% to Rs 16.73 crore.

In FY 2019, Esab India registered 24% jump in sales to Rs 671.63 crore. OPM improved 220 basis points to 11.1% which saw OP grow 52% to Rs 78.80 crore.

Other income grew 30% to Rs 16.72 crore and depreciation went up 6% to Rs 10.70 crore.

Thus PBT jumped 56% to Rs 84.82 crore.

EO loss was Rs 68 lakh against Rs 1.88 crore. Thus PBT after EO grew 60% to Rs 84.14 crore.

The company undertook a restructuring exercise during the previous years at Taratala involving optimizing its capacities, which had resulted in impairment of property, plant and equipment amounting to NIL (FY 2018 : Rs. 68 lakhs and for FY 2019: Rs 188 lakhs). This is shown as EO.

Tax provision was higher by 71% to Rs 26.55 crore. Thus net profit jumped 55% to Rs 57.59 crore.

Valuation

The stock trades at Rs 1105.