• Downside in revenue was largely due to growth in revenue of equipment business of the company. The segment revenue of consumables was down by 9% to Rs 93.73 crore (or 73% of sales) with prolonged slowdown in manufacturing activity especially the auto and engineering sector. However the segment revenue of equipment was higher by 9% to Rs 34.15 crore.
• EBIT was up by 9% to Rs 14.48 crore with increase in profit of consumables as well as lower loss at equipment business. The segment profit of consumables was up by 6% to Rs 16.19 crore despite lower revenue and that is largely due to 250 bps expansion in segment margin to 17.3%. On the other hand the equipment business registered a segment loss of Rs 1.71 crore lower than a loss of Rs 1.91 crore in the corresponding previous period.

Consolidated sales was down by 5% to Rs 127.91 crore and with OPM expand by 40 bps to 9.4%, the fall at operating profit was restricted at 1% to Rs 12.04 crore. Eventually gained by higher other income, lower interest and lower taxation, the PAT was up by 22% to Rs 7.02 crore.

Nine-month performance

Standalone sales was up by 7% to Rs 385.96 crore and that together with 20 bps expansion in OPM to 8.3%, the operating profit was up by 9% to Rs 31.89 crore. After accounting for flat OI, higher interest and higher depreciation, the PBT was up by 6% to Rs 26.10 crore. The PAT was eventually higher by 31% to Rs 21.49 crore after accounting for 43% fall in taxation to Rs 21.49 crore.

Consolidated sales was up by 6% to Rs 386.64 crore and its PAT was up by 29% to Rs 21.89 crore.

Interim Dividend

The Board of Directors of the Company at its meeting held on February 14, 2020, inter alia, has declared interim dividend of Rs. 6.50 (i.e. 65%) per Equity Share of face value of Rs. 10/- each for the Financial Year 2019-20.