WPIL registered 16% fall in consolidated sales to Rs 228.29 crore for the quarter ended Sep 2019. That together with 580 bps erosion in operating profit margin has led to 41% fall in operating profit to Rs 32.01 crore. The other income was down by 90% to Rs 0.96 crore and thus the PBIDT was down by 48% to Rs 32.97 crore. The PBT was down by 63% to Rs 20.73 crore after accounting for higher interest cost and depreciation. With share of profit from associate stand higher by 38% to Rs 0.26 crore, the PBT after share of profit from associate but before EO was down by 63% to Rs 20.99 crore. As taxation being a write-back of Rs 0.39 crore (against a provision of Rs 12.86 crore in corresponding previous period) the PAT was down by 51% to Rs 21.38 crore. Eventually the net profit was down by 48% to Rs 18.02 crore with minority interest stand lower by 61% to Rs 3.36 crore.
- Standalone sales of the company for the quarter was down by 12% to Rs 103.63 crore and with OPM contract by 430 bps to 13.5%, the operating profit was down by 33% to Rs 13.98 crore. After accounting for lower OI, higher interest and depreciation the PBT was down by 56% to Rs 13.43 crore. But with taxation stand lower by 93% to Rs 0.69 crore, the fall in PAT has moderated to stand at 38% to Rs 12.73 crore.
- On deducting standalone financials from consolidated financials, the sales of subsidiaries was down by 19% to Rs 124.66 crore and with OPM erode by sharp 670 bps to 14.5%, the operating profit was down by 45% to Rs 18.03 crore. The PBT was down by 72% to Rs 7.30 crore.
During the period April – September 2019, Gruppo Aturia S.p.A (a step down subsidiary of the company) has acquired Finder Pompe Sri, an Italian Company and it has become a subsidiary of Gruppo Aturia S.p.A. The above consolidated financial results include WPIL and its 12 subsidiaries (including 10 step down subsidiaries), 1 Associate, 1 Joint Venture and 5 Joint Operations.
Half yearly performance
Consolidated sales was down by 25% to Rs 424.84 crore and with OPM crash to 9.1% from 21.1% in corresponding previous period, that together with lower sales led to 67% fall in OP to Rs 38.75 crore. After accounting for lower OI, higher interest and depreciation, the PBT was down by 85% to Rs 17.16 crore. The PBT after share of profit from associate was down by 85% to Rs 17.60 crore with share of profit stand higher by 16% to Rs 0.44 crore. The PAT was down by 80% to Rs 16.19 crore with taxation down 96% to Rs 1.41 crore. Eventually the net profit was down by 69% to Rs 20.70 crore as minority interest being a share of loss amounting Rs 4.50 crore against a share of profit of Rs 12.83 crore.
Other developments
The Holding Company has exercised the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by Taxation, Laws (Amendment) Ordinance, 2019. Accordingly, the Deferred Tax Liabilities (net) as at March 31, 2019 and estimate of tax expense for the year ended March 31, 2020 have been remeasured. The resultant impact is being recognised in the current quarter of the financial year. Consequently, tax expense for the current quarter and six months ended September 30, 2019 includes credit of Rs 204.76 lacs and Rs. 88.60 lacs respectively.
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