• Flat sale for the quarter was largely due to lower revenue from civil works. While the revenue of erection works was up by 4% to Rs 181.8 crore, O&M up by 22% to Rs 170.2 crore and electrical up by 202% to Rs 33.8 crore that of civil works was down by 30% to Rs 146.4 crore.

• Operating profit margin expanded by just 10 bps on year on year basis to 12.9% on the back of sharp fall in staff cost. The material cost as proportion to sales was up by 460 bps to 15.3%. And the Contract expenses were up by 40 bps to 55.6%. But with staff cost down by 500 bps to 14.7% and OE stay flat at 1.5% the OPM marginally expanded.

• Other income was lower by 39% to Rs 2.29 crore and thus the PBIDT was down by 2% to Rs 71.14 crore. The interest cost was up by 45% to Rs 19.16 crore and the depreciation cost was down by 20% to Rs 9.91 crore. Thus the PBT was lower by 10% to Rs 42.07 crore.
• The taxation was down by 42% to Rs 7.53 crore as the company opts for lower corporate tax as per the recent ordinance.
• Share of profit from JV was higher at Rs 0.23 crore compared to a profit of Rs 0.02 crore in the corresponding previous period. Minority interest for the quarter was a share of loss of Rs 0.33 crore compared to a profit of Rs 5.14 crore in the corresponding previous period. Thus on a deflated base the net profit was up by 24% to Rs 35.10 crore.

Half yearly performance

Consolidated sales for the quarter were up by 3% to Rs 1024.36 crore. With OPM flat at 13%, the operating profit was up by 3% largely due to higher sales. However the PBT was down by 5% to Rs 83.81 crore hit largely by lower OI, higher interest even as depreciation stand lower. The taxation was down by 7% to Rs 22.41 crore. Eventually the PAT was down y 4% to Rs 61.40 crore. After accounting for share of profit from JV and MI the net profit was up by 20% to Rs 63.51 crore largely due to a swing of Rs 11.96 crore to a share of loss of Rs 0.70 crore.

Order book

Order backlog as on 30th Sep 2019 Rs 7213.0 crore with order inflow in H1FY20 stand at Rs 1340.2 crore. Including the orders received so far in Q3FY20 (upto Nov 17 2019) the order backlog as end of Nov 17, 2019 stood at Rs 7424 crore [power 49%; non power 51%]. Similarly of the YTD (upto Nov 17, 2019) order inflow of Rs 1551.2 crore about 82% is power orders and 18% is non power.

The YTD order backlog includes orders worth Rs 2112 crore from Government of Andhra Pradesh. Excluding AP orders the order book will be Rs 5312 crore.