• Sale for the quarter was up by 11% to Rs 169.19 crore even while the value of production for the period was up by 9% to Rs 170.34 crore. Sales for the period and corresponding previous period was 0.99 times and 0.97 times of their respective value of production. Sales lower than value of production reflects inventory buildup which will get liquidated in coming quarters

• Operating profit margin expanded by 500 bps to 13.8% and that is largely due to lower material cost and OE. Material cost as proportion to sales net of stocks was down by 760 bps to 49.9%. The OE was down by 120 bps to 13.3%. However the cost of traded goods and staff cost was up by 320 bps (to 12%) and 40 bps (to 11.1%) respectively. Thus facilitated by higher sale and higher OPM, the OP was up by 74% to Rs 23.37 crore.

• Other income was lower by 39% to Rs 3.55 crore and thus the growth at PBIDT was restricted at 40% to Rs 26.92 crore. Interest cost in absolute terms was higher at Rs 0.14 crore against nil in the corresponding previous period. The depreciation was up by 15% to Rs 3.13 crore. Thus hurt by higher interest and depreciation cost the growth at PBT was restricted at 43% to Rs 23.65 crore.

• Finally, net profit was higher by 54% to Rs 17.76 crore after providing for taxation, which was higher by 18% to Rs 5.89 crore.
• The Company has exercised the option permitted under Section I l 5BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Deferred Tax Liability (net) as at 31st March 2019 and the estimate of tax expenses for the year ending 31st March 2020 have been re-measured. The resultant impact has been recognized in the previous quarter ended 30^th September 2019.

Nine-month performance

Standalone sales for the quarter was up by 7% to Rs 522.98 crore and with OPM expand by 260 bps to 13.7%, the operating profit was up by 32% to Rs 71.87 crore. The PBT was up by 17% to Rs 71.64 crore largely hit by lower OI and higher depreciation. The EO was nil compared to an income of Rs 0.68 crore in the corresponding previous period. Thus the PBT after EO was up by 18% to Rs 71.64 crore. With taxation lower by 6% to Rs 18.30 crore the PAT was up by 29% to Rs 53.34 crore.

The stock hovers around Rs 1615.35.