• Sales for the quarter was flat at Rs 1258.53 crore hit largely by lower EPC revenue. EPC revenue (after elimination of inter segment revenue) was down by 25% to Rs 186 crore. However the cable revenue was up by 5% to Rs 1048 crore driven largely by 23% growth in institutional sales to Rs 727 crore which more than offset the 21% fall in retail sales of cable through dealers/distributors to Rs 321 crore. Within institutional cables sales, the domestic was up by 6% to Rs 501 crore and that of exports was up by sharp 93% to Rs 226 crore.

• Strong 250 bps contraction in operating profit margin is largely due to higher OE. Material cost as % to sales net of stocks and excise was down by 420 bps to 48.7%. The staff cost was up by 350 bps to 12.2%. However the other expense was up by 290 bps to 13.7%.
  
• EBIT was up by 5% to Rs 160.01 crore with upside coming from both cables and SS wires. Segment profit of cables was up by 6% to Rs 114.90 crore facilitated largely by higher sales with its segment margin stay flat. Segment profit of SS wire was up by 313% to Rs 4.23 crore, driven by higher sales as well as 800 bps expansion in segment margin to 10.8%. However the segment profit of EPC projects was down by 7% to Rs 40.87 crore hit by lower sales as well as lower margin.
  
• Other income was down by 36% to Rs 2.38 crore, the interest cost was down by 35% to Rs 27.66 crore and depreciation was higher by 59% to Rs 13.72 crore. Thus the PBT was down by 10% to Rs 81.60 crore.
  
• EO income for the quarter and corresponding previous period was nil. The taxation was down by 32% to Rs 20.75 crore in absolute terms. And thus gained the PAT was up by 2% to Rs 60.85 crore.  

Yearly performance  

Sales was up by 16% to Rs 4884.27 crore and the operating profit was up by 12% to Rs 496.04 crore as the OPM contract by 30 bps to 10.2%. After accounting for higher other income, lower interest and higher depreciation, the PBT was down by 17% to Rs 326.67 crore. Taxation was down by 27% to Rs 71.56 crore and thus the PAT was up by 40% to Rs 255.10 crore.  

Order book  

Order backlog as end of March 31, 2020 was 3244 crore (EPC Rs 1233 crore; EPC EHV 731 crore; cables Rs 1116 crore; Exports 164 crore). In addition the company have and L1 order of Rs 16 crore (EPC EHV) taking the total orders to Rs 3260 crore.

Update on QIP  

During the quarter ended March 31, 2020, the company has issued 1 Crore equity shares of Rs 2/- each at premium of Rs 498/- each (Issue Price per share Rs 500/- each) amounting to Rs 500 Crore to qualified institutional buyers through Qualified Institutions Placement (QIP). Pursuant to the allotment of equity shares through QIP, the paid up equity share capital of the Company has increased from Rs 15.90 Crore comprising of 79,504,438 equity shares to Rs 17.90 Crore comprising of 89,504,438 equity shares. The proceeds of QIP have been utilized as per objects of the Issue such as repayment or prepayment of debts. The company prepaid/repaid Rs 397.3 crore of debt.