• Upside in revenue was due to strong growth in revenue of both cables and EPC business. The segment revenue of cables was up by 23% to Rs 994.79 crore (or 74% of sales) driven by strong 34% growth in sales to institutions with retail sales stand higher by 4%. The segment revenue of EPC Projects jumped up by 97% to Rs 320.70 crore (or 24% of sales). However the segment revenue of stainless steel wire was down by 7% to Rs 33.91 crore.
• The EBIT (before elimination of intersegment) was up by 25% to Rs 137.23 crore driven by strong growth in profits of both cables and EPC projects businesses. The segment profit of cables was up by 24% to Rs 104.22 crore driven largely by higher sales as its segment margin expand by just 10 bps to 10.5%. Despite share jump in sales the segment profit of EPC Projects was up by 41% to Rs 31.78 crore as its segment margin erode by 390 bps to 9.9%. The segment profit of stainless steel wire was down by 65% to Rs 1.24 crore hit by lower sales as well as 620 bps erosion in segment margin to 3.7%.

Half yearly performance

Sales was up by 23% to Rs 2311.52 crore and the OPM was up by 30 bps to 10.2%. Thus the OP was up by 26% to Rs 236.15 crore gained by higher sales as well as marginally higher margin. The PBT was up by 31% to Rs 148.29 crore after accounting for higher OI, higher interest and depreciation cost. The taxation was down by 34% to Rs 26.31 crore and thus the PAT was up by 66% to Rs 121.98 crore.

Segment profit of cables for the period was up by 23% to Rs 193.32 crore largely due to higher sales (up 23% to Rs 1849.68 crore) as its segment margin up by marginal 10 bps to 10.5%. The segment profit of EPC Projects jumped up by 58% to Rs 76.11 crore largely by higher sales (up 62% to Rs 628.07 crore) as its segment margin erode by 30 bps to 12.1%. The segment profit of stainless steel wire was down by 53% to Rs 3.16 crore hit by lower sales (down 2% to Rs 65.69 crore) as well as lower margin (down 520 bps to 4.8%).

Order book update

Pending order book as end of Sep 30, 2019 was Rs 4370 crore (Rs 2033 crore EPC; Rs 628 crore EHV; Rs 1188 crore Cable; Rs 521 crore Exports). In addition the company is L1 for orders worth Rs 128 crore completely of EHV cables.