• Sales were higher by 11% to Rs 901.20 crore. However the value of production for the quarter was up by 9% to Rs 893.60 crore. Sales higher than value of production means liquidation of earlier period inventory.

• Operating profit margin expanded by sharp 630 bps to 20.9% and this can be attributed to fall in all cost heads. Material cost (including cost of traded goods) as proportion to sales net of stocks was lower by 140 bps to 50.5%. Similarly the cost of staff and OE was down by 50 bps (to 15.7%) and 480 bps (to 12.8%) respectively. Thus gained by higher sales and higher OPM the operating profit jumped up by 60% to Rs 188.59 crore.

• After accounting for higher other income, higher interest and depreciation cost as proportion to sales, the growth at PBT was restricted at 47% to Rs 194.44 crore.

• Taxation in absolute term was up by 7% to Rs 49.70 crore and the effective tax rate for the quarter was lower at 25.6% compared to 35.1% in the corresponding previous period. Thus gained by lower tax incidence, the PAT jumped up by 69% to Rs 144.74 crore.

Effective April 1, 2019, the Company has adopted Ind AS 116 Leases and applied the standard to all lease contracts existing on that date using the modified retrospective method, recognizing the cumulative effect of initially applying this standard as an adjustment to right-of-use asset as on April 1, 2019. Accordingly comparatives for the year ending March 31, 2019 are not retrospectively adjusted or restated. Further transition adjustments, if any, arising from refinements or authoritative interpretation guidance are recognized prospectively.

Nine-month performance

Sales was up by 9% to Rs 2585.75 crore and that together with 360 bps expansion in OPM to 19.6% has resulted in 34% jump in operating profit to Rs 507.80 crore. After accounting for higher other income (up 14% to Rs 63.93 crore) as well as higher interest and higher depreciation (up 148% to Rs 28.77 crore), the PBT was up by 27% to Rs 537.61 crore. The taxation was higher by 6% to Rs 157.27 crore and the tax rate was lower at 29.3% (against 35.1%) thus facilitating 38% growth in PAT to Rs 380.34 crore.