• Sales for the period was lower by 10% to Rs 222.72 crore hit more by lower volume. While the volume for the quarter was down by 8% to 26271 numbers that of unit realization was down by 2% to Rs 84777.9/unit.

• OPM contracted sharply by 270 bps to 13.5% hit largely by rise in all cost heads. The material cost as proportion of sales net of stocks was up by 130 bps to 76.7% and that of staff cost was up by 90 bps to 4.9%. The OE was up by marginal 20 bps to 4.8%. Thus hit by lower sales and lower margin, the OP was down by 25% to Rs 30 crore.

• With OI stand lower by 11% to Rs 3.44 crore, the de-growth at PBIDT was 24% to Rs 33.44 crore. And with interest cost nil for the quarter as well as corresponding previous period, the depreciation was higher by 11% to Rs 5.34 crore. Thus hit by lower OI and higher depreciation the PBT was down by 28% to Rs 28.09 crore.

• With taxation (net of deferred tax) for the period down by sharp 80% to Rs 2.70 crore the PAT was flat at Rs 25.39 crore.

• Sharp fall in taxation was largely as the company has opted to exercise the option permitted under section 115BAA of the Income-Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019, Accordingly, the Company has recognized provision for Income Tax for the six months ended 30th September 2019 and re-measured its Deferred Tax Liability based on the rate prescribed in the said section. The full impact of this change has been recognized in the statement of Profit & Loss for the quarter ended 30^th September 2019.

Half yearly performance

Sales for the period was down by 11% to Rs 428.10 crore. But with OPM contract by 200 bps, that together with lower sales facilitated 25% fall in operating profit to Rs 57.36 crore. The other income was down by 8% to Rs 7.06 crore and thus the PBIDT was down by 24% to Rs 64.42 crore. With interest stand lower by 88% to Rs 0.01 crore and depreciation up by 6% to Rs 10.10 crore, the PBT was down by 27% to Rs 54.31 crore. With taxation down by 55% to Rs 12 crore, the fall at net profit was eventually restricted at 13% to Rs 42.31 crore.